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Empty properties and second homes

We normally continue to charge Council Tax on empty properties. 

There are discounts and exemptions for certain circumstances. You can find out if you’re eligible and how to apply below.

Long Term Empty Property Premium

Empty and unfurnished properties, including those needing or undergoing major repairs or structural alterations, are not exempt from council tax. This follows a change in the law on 1 April 2013.

Properties that are empty (vacant and substantially unfurnished) for one year or more are subject to a premium. From 1 April 2024, the following premiums apply:

  • For properties that have been empty for one or more years, but less than five years, the premium is 100%. This means you will be asked to pay 200% of the full council tax bill. (Prior to 1 April 2024 the property could be empty for 2 years before the premium became payable)
  • For properties that have been empty for five or more years, but less than 10 years, the premium is 200%. This means you will be asked to pay 300% of the full council tax bill.
  • For properties that have been empty for 10 years or more, the  premium is 300%. This means you will be asked to pay 400% of the full council tax bill.

If a premium becomes payable during the financial year, you will be sent a revised bill.

As this premium applies to the property, a change of ownership or tenancy will not affect the premium. If the property had already been empty or substantially unfurnished for one or more years when you bought or leased it, you will have to pay the extra council tax. Some properties are still eligible for an exemption.

For more information or to make an online application visit sutton.gov.uk/counciltax

Unoccupied and Unfurnished Properties

There is no discount or exemption for unoccupied or unfurnished properties. This includes unoccupied or unfurnished properties undergoing major works, repairs, or structural alterations. The exemption that used to be awarded for this ended on 1 April 2013.

Second Home Premium

For Council Tax purposes, a second home is defined as a property which is substantially furnished but is no-ones sole or main home. This includes properties that are left empty and furnished or properties that are periodically occupied as the owner/occupier has a main home elsewhere.

Currently second homes pay a 100% Council Tax Charge. 

However, Section 80 of the Levelling Up and Regeneration Act 2023, gave Local Authorities in England the power to charge a Council Tax Premium of 100% on such properties from 1 April 2025.

At a meeting on 13 March 2024 the Council’s Housing, Economy and Business Committee agreed to implement the 100% Council Tax premium on second homes from 1 April 2025. This means such properties will be subject to pay 200% Council Tax from this date.

Where appropriate, the Second Home Premium will be included on the 2025-2026 annual bills that will be issued towards the end of March 2025. 

There is no right of appeal against the council’s decision to charge the premium. However, if you believe the premium should not apply to your property as it is no longer a second home then you need to email counciltax@sutton.gov.uk to explain why, provide the effective date and provide supporting evidence of when the property ceased to be a second home.

Such evidence can include a copy of a tenancy agreement if the property is occupied by a tenant or if you have moved into your property as your main residence identification documents that include your address such as a copy of your driving licence together with a copy of your closing Council Tax bill for your previous addresses or a copy of your dated check out report if you were a tenant at your previous address.
 

Exceptions to the Premiums

The government has confirmed there will be certain exceptions to the premiums from 1 April 2025. Not all the exceptions apply to both long term empty homes and second homes. The information under each class below confirms which premium the exception applies to:

Class E - A dwelling which is or would be someone’s sole or main residence if they were not residing in job-related armed forces accommodation

A mandatory exception from the long term empty property premium already exists and will apply to the second homes premium from 1 April 2025 The dwelling would be the sole or main residence of the liable person if they did not live elsewhere in Armed Forces accommodation that is job related. Evidence required - Proof resident in armed forces accommodation.

 

Class F - Annexes forming part of, or being treated as part of, the main dwelling

A mandatory exception from the long term empty property premium already exists and will apply to the second homes premium from 1 April 2025 The dwelling forms part of a single property including at least one other dwelling and is being used by the resident of the other dwelling as part of their sole or main residence. Evidence required - Proof of usage including photos. A visit may be required.

Class G - Dwellings being actively marketed for sale (12 months limit from date first actively marketed)

This exception will apply to both the long term empty property premium and the second homes premium from 1 April 2025. It applies to properties that are for sale or where the sale has been agreed but not completed.

This exception can apply for up to 12 months from the point from which the dwelling has first been marketed for sale. The exception will end either when the 12-month period has ended, when the dwelling has been sold or when the dwelling is no longer actively marketed for sale.

The following conditions will apply to this exception:

  • the same owner may only make use of the exception for a particular dwelling marketed for sale once
  • the exception may be used again for the same dwelling if it has been sold and has a new owner

When considering a request for an exception we will consider the following and require evidence of the same:

  • whether the dwelling is clearly advertised for sale
  • whether the dwelling is being marketed at a fair market value whether there are any artificial barriers on the dwelling preventing sale
  • whether the dwelling has an Energy Performance Certificate (EPC)
  • whether the owner is taking any other reasonable steps to market the dwelling for sale

Evidence required can include:

  • Proof the property is on the market for sale including confirmation from the relevant Estate Agent of the date it first became actively marketed and marketing information including online links
  • Confirmation/details from the Estate Agent of sale prices for similar properties to demonstrate the asking price is at fair market value
  • A current Energy Performance Certificate
  • Information from the Estate Agent/Solicitors regarding any sale agreed for the dwelling.

Class H - Dwellings being actively marketed for let (12 months limit from date first actively marketed)

This exception will apply to both the long term empty property premium and the second homes premium from 1 April 2025. It applies to properties that are available to let or where the rent has been agreed but the tenancy has not yet started.

This exception can apply for up to 12 months from the point from which the dwelling has first been marketed for let. The exception will end either when the 12-month period has ended, when the dwelling has been let or when the dwelling is no longer actively marketed for let.

The following condition will apply to this exception:

  • the same owner may make use of the exception for properties marketed for let multiple times, however, only after the properties have been let for a continuous period of at least 6 months since the exception last applied.

When considering a request for an exception we will consider the following and require evidence of the same:

  • whether the dwelling is clearly advertised for for letting
  • whether the dwelling is being marketed at a fair rent
  • whether the dwelling has an Energy Performance Certificate (EPC)
  • whether the owner is taking any other reasonable steps to market the dwelling for letting

Evidence required can include:

  • Proof the property is on the market to let including confirmation from the relevant Lettings Agent of the date it was first marketed to let and marketing information including online links.
  • Confirmation from the Lettings Agent of the type of tenancy the property will be let under Confirmation/details from the Lettings Agent of rent prices for similar properties to demonstrate the rent price is a fair market rent.
  • A current Energy Performance Certificate
  • Information from the Letting Agent regarding any tenancy agreed for the dwelling that has not yet started

Class I - Unoccupied dwellings which fell within Council Tax exempt Class F and where probate/letters of administration has recently been granted (12 months limit from date probate/letters of administration granted)

This exception will apply to both the long term empty property premium and the second homes premium from 1 April 2025.

There is an existing Class F council tax exemption for properties left empty because the owner/occupier has died. The exemption continues for up to six months from the date probate/letters of administration is/are granted, provided the property remains unoccupied and has not been transferred by the executors or administrators to beneficiaries or sold.

However, following the grant of probate/letters of administration further time may be needed to decide what is to happen to the property. The regulations therefore provide for a 12-month exception to the premium for both second and long term empty homes. The 12-month period begins from the date probate is granted or letters of administration are issued. This exception runs concurrently with the six month exemption period given from the date probate/letters of administration is/are granted under the Class F exemption.

Please note this exception will run for 12 months from the date of grant of probate/letters of administration provided the property remains unoccupied and has not been transferred to beneficiaries or sold.

Evidence required - a copy of the grant of probate/letters of administration and confirmation that the property has not been transferred to beneficiaries or sold.

Class J - Job-related dwellings

This exception will apply to the second home premium from 1 April 2025.

Generally, a dwelling would be classed as a job-related dwelling where it is a dwelling provided by a person’s employer for the purposes of performing their work.

This discount applies to either;

  • The job-related property if it is your second home

or

  • Another property if the job-related property is your main residence and you have another property that is a second home.

To qualify you must be:

  • Registered and liable for Council Tax at your main address and at your second home
  • Employed with a contract that confirms you need to live in the job related property for your work as a condition of your employment

Evidence required -

  • A copy of your Council Tax bill for your main residence showing the Council Tax is paid at the full occupied rate 
  • A copy of your contract of employment showing you are required to live in the job related property for the purposes of performing the job.

Class K - Occupied caravan pitches and boat moorings

This exception will apply to the second home premium from 1 April 2025.

It applies to a second home that is a caravan pitch or boat mooring where the caravan or boat is empty.

Evidence - photos of the caravan or boat to show it is empty - a visit may be required.

Class L - Seasonal homes

This exception will apply to the second home premium from 1 April 2025.

It applies to second homes where:

  • Planning restrictions mean that the property cannot be used as a person’s main residence, such as a property that is purpose-built holiday accommodation which can only be used as holiday accommodation.
  • Planning restrictions mean the property cannot be occupied for at least 28 continuous days in a year and the property must not be the person’s sole or main residence

Evidence - evidence of the relevant planning restriction.

Class M - Empty dwellings requiring or undergoing major repairs or structural alterations (12 months limit)

This exception will apply to the long term empty premium from 1 April 2025 for up to 12 months.

It applies where a property requires or is undergoing major repairs or is undergoing structural alteration.

If the major repairs are completed in less than 12 months, the exception will still apply to the property for up to six months or until the end of the 12 months whichever is sooner.

General refurbishment of a property such as replacing an outdated bathroom or kitchen would not be classed as major repairs.

This exception only applies on empty homes. If the property becomes substantially furnished this exception will end.

This exception cannot apply again unless the dwelling has been sold.

Evidence required can include:

  • Photos of the property
  • Surveyor/insurance/builders reports
  • Schedule or required works and costings

Further details regarding the exceptions can be found in this guidance issued by the government

Please note, if you believe your property should be exempted from the Second Home Premium, you will not be able to apply for the relevant exception until you have received your annual bill which will be issued towards the end of March 2025. Your application will then be considered in accordance with the guidance provided by the government and, having read the guidance, you will need to include evidence to substantiate your application. Your Council Tax will remain payable in accordance with the instalments detailed on your 2025-2026 annual bill until we have considered your case.

Holiday lets/self catering accommodation

From 1 April 2023 the rules regarding self-catering and holiday lets changed. A property can be subject to business rates rather than Council Tax. Details of the criteria and how to inform the Valuation Office Agency (responsible for determining rateable values for Business Rates and Council Tax bands) can be found within the Introduction to business rates self-catering and holiday let accommodation

The Valuation Office Agency will determine whether your property should be listed for Council Tax or Business Rates. The Council has no jurisdiction over their decision.

Discounts and exemptions for empty properties

You’ll need to know your Council Tax account number to apply for these discounts and exemptions. You can find it at the top of your paper bill or in MyAccount.

Waiting to be occupied for a minister of religion (exempt class H)

You may not have to pay Council Tax on a property that’s waiting for a minister of religion to live in it.

The property needs to be where they’ll perform the duties of their office.

Apply for a minister of religion exemption

In hospital, care home or nursing home (exempt class E)

A taxpayer may be exempt from paying Council Tax if they’re living permanently in a care/nursing home or hospital as their main residence. 

The exemption will apply from the date that the person left their property to move into the care home, nursing home or hospital. 

It will only apply if the person has no intention of returning to their property. If the person does return to the property, the exemption will be cancelled. A Council Tax charge will apply from when they left their property. 

What you'll need 

You’ll need to provide a letter from the nursing/care home or hospital that confirms the placement is permanent and the date the person moved in.

Apply for an in-hospital, care home or nursing home exemption.

Moved to give or receive care (exempt class I and J)

 

Moved to another property to receive care (exempt class I)

A previous owner or tenant may be exempt from paying Council Tax if they’ve moved to another property to receive care. 

This can include care for:

  • old age
  • illness
  • disablement
  • alcohol or drug abuse
  • mental health conditions

Apply for getting care somewhere else exemption

Moved to care for someone else (exempt class J)

A previous owner or tenant may be exempt from paying Council Tax if they’ve moved to give care to someone else. 

Apply for moved to care for someone else exemption

Last occupier has died (exempt class F)

If a property is left empty because the owner/occupier or tenant has died, it may be exempt from Council Tax.

Death of an owner/occupier

You’ll need to provide copies of:

  • the owner/occupier or tenant’s death certificate 
  • name and address of their next of kin 
  • grant of probate or letters of administration (when obtained) 

The exemption will continue for up to six months from the date it’s granted, provided the property remains unoccupied. 

You’ll need to let us know if the property becomes occupied, is sold, or is transferred to a beneficiary.

Death of a tenant who lived alone

The exemption will apply as long as the property remains unoccupied and the tenancy remains in effect. 

Once the tenancy has ended, liability for Council Tax reverts to the landlord.

You’ll need to provide:

  • a copy of the person’s death certificate, and 
  • the name and address of their next of kin

Once the tenancy is ended, you’ll need to let us know:

  • the date the tenancy ended
  • the landlord’s name and address
  • whether the property was a furnished or unfurnished let

If a Council Tax payer dies without leaving a will and no relatives can be traced, an exemption will apply from the date of their death.

If that happens, the liability for Council Tax falls on the treasury solicitor, an officer of the government. 

Apply for an occupier death exemption

In prison or detained by law (exempt class D)

If an owner/occupier or tenant has been imprisoned, their property may be exempt from paying Council Tax.

The exemption does not apply in cases where imprisonment is because they haven’t paid their Council Tax or a fine.

You’ll need to provide:

  • the address of the prison in which the person is detained
  • the date of their imprisonment
  • their prison number (if they have one)

Apply for an in prison or detained by law exemption

Repossessed properties (exempt class L)

If a property has been repossessed by the mortgage lender, it may be exempt from Council Tax.

You’ll need to provide a letter from the mortgage company that confirms repossession. 

Apply for a repossession exemption

Owner bankruptcy (exempt class Q)

A property may be exempt from Council Tax if:

  • the previous owner has declared bankruptcy
  • a person named as trustee has responsibility for the property as a result

If the person who is bankrupt still lives in the property, they remain liable to pay Council Tax until they move out.

Apply for an owner bankruptcy exemption

Legal reason it can’t be lived in (exempt class G)

If a property can’t be occupied because it has been forbidden by law, it may be exempt from Council Tax. For example, buildings declared derelict or unsafe.

You’ll need to provide evidence that the property legally can’t be occupied.

Apply for a legal reason exemption

Owned by a charity (exempt class B)

If a property is owned by a registered charity, and was last occupied for the work of that charity, it may be exempt for up to six months.

You’ll need to provide evidence and include your registered charity number. 

Apply for an owned by a charity exemption

Empty student house (exempt class K)

If a property would usually be occupied only by students, but there’s nobody currently living there, it may be exempt from paying Council Tax.

Apply for an empty student house exemption

Vacant caravan pitches (exempt class R)

Caravan pitches that are not occupied by a caravan are exempt whilst they’re empty.

You’ll need to provide full details of the pitch and the date it became empty.

Apply for a vacant caravan pitch exemption