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.
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:
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
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.
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:
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.
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.
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:
When considering a request for an exception we will consider the following and require evidence of the same:
Evidence required can include:
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:
When considering a request for an exception we will consider the following and require evidence of the same:
Evidence required can include:
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.
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;
or
To qualify you must be:
Evidence required -
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.
This exception will apply to the second home premium from 1 April 2025.
It applies to second homes where:
Evidence - evidence of the relevant planning restriction.
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:
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.
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.
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.
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.
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.
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.
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:
Apply for getting care somewhere else exemption
A previous owner or tenant may be exempt from paying Council Tax if they’ve moved to give care to someone else.
If a property is left empty because the owner/occupier or tenant has died, it may be exempt from Council Tax.
You’ll need to provide copies of:
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.
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:
Once the tenancy is ended, you’ll need to let us know:
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.
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:
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.
A property may be exempt from Council Tax if:
If the person who is bankrupt still lives in the property, they remain liable to pay Council Tax until they move out.
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.
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.
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.
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.
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