Renters' Rights Act 2025, Phase 1 commencement
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England

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.

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