England, Wales and Scotland · Second Home Council Tax Premium: Furnished Habitable Properties Not Used as Main Home · England: Up to 100% From 1 April 2025 · Wales: Up to 300% From 1 April 2023 · Scotland: Up to 100% Discretionary · Holiday Let Exemption: Business Rates (Not Council Tax) If Availability/Letting Days Met · Distinct From Empty Homes Premium (Unfurnished/Unoccupied)

Second Home Council Tax UK 2026 — England 100% Premium From April 2025, Wales 300%, Scotland Discretionary and Holiday Let Business Rates Exemption

Second home council tax premiums UK 2026: local authorities across England, Wales, and Scotland can charge additional council tax on second homes — furnished, habitable properties not used as the owner's main residence. England: up to 100% premium from 1 April 2025 (LGFA 1992 s.11B as amended by Levelling-up and Regeneration Act 2023) — owner pays double the standard council tax rate; councils must give 12 months' notice. Wales: up to 300% from 1 April 2023 (LGFA 1992 s.12A — many councils charging 150-300%; highest in Gwynedd, Pembrokeshire, Anglesey, Ceredigion). Scotland: up to 100% discretionary from 1 April 2024 (LGFA 1992 s.75B — Edinburgh, Highland, Argyll and Bute among councils implementing maximum). Crucial distinction: SECOND HOME PREMIUM applies to FURNISHED and HABITABLE properties not the main home; EMPTY HOMES PREMIUM applies to SUBSTANTIALLY UNFURNISHED and UNOCCUPIED properties. Holiday let business rates exemption: England 140 days available/70 days let; Wales 252/182 days from April 2023 (tightened); Scotland 140/70 days.

14 min readUpdated 7 June 2026Last reviewed: 17 May 2026council-taxsecond-homeholiday-letempty-homes

England — up to 100% premium from 1 April 2025, Wales — up to 300% from 1 April 2023 and Scotland — up to 100% from 1 April 2024

ENGLAND: the Levelling-up and Regeneration Act 2023 Part 5 Chapter 4 amended LGFA 1992 s.11B to allow councils to charge up to 100% council tax premium on second homes from 1 April 2025 (councils must give 12 months' notice). A 'second home' is a dwelling that is furnished and not the sole or main residence of any person. The 100% premium means the owner pays 200% of the standard rate. Implementation is at council discretion — high-pressure tourism and housing areas most likely to implement (Cornwall, Devon, Lake District, Yorkshire Dales, Cotswolds, North Yorkshire). Statutory exemptions: job-related dwellings; sole/main residence; properties undergoing major structural repairs (up to 12 months); annexes occupied as additional family accommodation; properties used for letting to seasonal workers. WALES: from 1 April 2023, Welsh local authorities can charge up to 300% council tax premium on second homes under LGFA 1992 s.12A (as substituted; maximum increased from 100% to 300% by Local Government Finance (Wales) Act 2024). Welsh second home premiums: Gwynedd 150%+; Pembrokeshire 200%+; Isle of Anglesey 150%+; Ceredigion 150%+; most Welsh councils now implement premiums. A 300% premium = owner pays 400% of the standard rate. SCOTLAND: from 1 April 2024, councils can charge up to 100% premium on second homes under LGFA 1992 s.75B (as amended). Edinburgh City Council, Highland Council, and Argyll and Bute Council among those implementing the maximum 100% premium.

Holiday let business rates exemption, distinction from empty homes premium and planning for landlords

HOLIDAY LET BUSINESS RATES EXEMPTION: properties qualifying as self-catering holiday accommodation are subject to non-domestic rates (business rates) — NOT council tax — so neither the second home premium nor the empty homes premium applies. Business rates for holiday lets typically attract 100% Small Business Rate Relief (SBRR) in England if the rateable value is below £15,000. The qualifying tests differ by nation: ENGLAND: available for letting at least 140 days per year AND actually let for at least 70 days (evidenced to VOA). WALES: from 1 April 2023 — significantly tightened — available 252 days AND actually let 182 days (previously 140/70). The Welsh tightening was a direct response to owners claiming business rates status to avoid the council tax second home premium — properties that no longer meet the new thresholds revert to council tax and the second home premium. SCOTLAND: available 140 days AND actually let 70 days (evidenced to the Scottish Assessors Association). EMPTY HOMES vs SECOND HOME: SECOND HOME PREMIUM — furnished, habitable, not main home; owner is the council tax ratepayer; premium applied on top of standard rate. EMPTY HOMES PREMIUM (LGFA 1992 s.11B England; s.12B Wales; s.75B Scotland): substantially unfurnished and unoccupied; England: 100% after 1 year, 200% after 5 years, 300% after 10 years (LURAA 2023). PLANNING FOR LANDLORDS: furnished void properties between tenancies risk the second home premium — check the specific council's policy; maintain holiday let booking records to evidence business rates qualification; in Wales, verify the tightened 252/182-day threshold is being met.

Frequently asked questions

What is the second home council tax premium in England from 2025?+

From 1 April 2025, English councils can charge up to 100% council tax premium on second homes — meaning the owner pays double the standard council tax rate. Power is in LGFA 1992 s.11B (as amended by the Levelling-up and Regeneration Act 2023). Councils must give 12 months' notice. Not all councils have implemented — most common in high-pressure areas (Cornwall, Devon, Yorkshire Dales, Lake District, Cotswolds).

What is the second home council tax premium in Wales?+

Welsh local authorities can charge up to 300% council tax premium on second homes from 1 April 2023 (maximum increased by Local Government Finance (Wales) Act 2024). A 300% premium means the owner pays 400% of the standard council tax rate. Most Welsh councils have implemented significant premiums — Gwynedd, Pembrokeshire, Isle of Anglesey, and Ceredigion have the highest rates. The premium does not apply if the property qualifies for business rates as a holiday let (252 days available; 182 days actually let per year from April 2023).

What is the difference between second home council tax and empty homes council tax?+

Second home premium applies to FURNISHED and HABITABLE properties not used as the owner's main home. Empty homes premium applies to SUBSTANTIALLY UNFURNISHED and UNOCCUPIED properties. A furnished rental property in a void period is more likely to attract the second home premium; an unfurnished unoccupied property is more likely to face the empty homes premium after any initial exemption period.

How do landlords avoid second home council tax with holiday let business rates?+

Properties qualifying as self-catering holiday accommodation for business rates purposes pay non-domestic rates (not council tax) — avoiding both premiums. England: 140 days available AND 70 days actually let per year. Wales (tightened April 2023): 252 days available AND 182 days actually let. Scotland: 140 days available AND 70 days actually let. Many English and Scottish holiday lets qualify for 100% Small Business Rate Relief (zero business rates). Wales tightened thresholds specifically to prevent council tax premium avoidance via business rates status.

Templates recommended in this guide

ComplianceLS-E-020

Landlord Annual Compliance Checklist

Annual walk-through of every compliance touchpoint: gas, electrical, EPC, smoke/CO, Right-to-Rent, deposit, licensing, database registration.

£19

Live now

Found a gap or disagree with something?

Reply to any LetSafe email or write to Richard@letsafeuk.co.uk. We rewrite guides when we get something wrong, the sooner we hear, the sooner we fix it.

Hand-picked by topic overlap with this guide.

Commercial Property Tax

Business Rates Empty Property UK — Empty Rate Relief, Mitigation Strategies, and Valuation Appeals

Covers the 3-month (standard) and 6-month (industrial) empty rate relief periods, statutory exemptions (listed buildings; charities; SBRR threshold; prohibited occupation; insolvency), legitimate mitigation strategies including the 6-week occupation reset, the risk of Makro-style stripping schemes, and the Check Challenge Appeal (CCA) process for reducing rateable value.

Commercial Landlord Business Rates 2026

Business Rates for Landlords — Non-Domestic Rates, Empty Property Rates and Small Business Rate Relief

Business rates (non-domestic rates) guide for commercial landlords 2026: occupier pays business rates when property is let and occupied; owner becomes liable for empty property rates when commercial property is vacant — 3-month exemption (6 months for industrial). Calculation: Rateable Value (VOA-assessed) × UBR (2024/25: 54.6p standard; 49.9p small business). Key reliefs: SBRR 100% for RV under £12,000 (England); RHL relief; charitable 80%. Empty rate mitigation: 6-week re-occupation; charity use; listed building exemption. Rating appeals via Check Challenge Appeal (CCA). Scotland: SBBS 100% relief RV under £12,000; Scottish UBR.

Tenancy Law

Licence vs Tenancy UK — What Landlords Must Know

The Street v Mountford test: when an occupier has exclusive possession at a rent, a tenancy arises regardless of the label. Sham licence clauses, genuine lodger arrangements, holiday let exemptions, LTA 1954 and commercial licences, and the consequences of misclassification.

England · Serviced Accommodation · FHL Abolition · VAT · Planning · Business Rates

Serviced Accommodation UK 2026 — Landlord Guide to SA Tax, Planning & Compliance