How much council tax premium can an English council charge on a second home?
Since 1 April 2025, billing authorities in England have been able to charge a premium of up to 100% of the standard council tax bill, in effect doubling it, on a home that is furnished but has no resident living in it as a main home. This is separate from the long-standing empty-homes premium on unfurnished properties left vacant, which can also run up to 100% for homes empty 1 to 2 years, rising to as much as 300% the longer a property stays empty. Both premiums are discretionary: each council decides for itself whether to charge one at all, and at what percentage up to the legal maximum, so two similar cottages in neighbouring council areas can face very different bills.
What about Wales?
Welsh councils have had the power to set a second-homes premium, and a separate long-term empty-homes premium, of up to 300% of the standard charge since 1 April 2023. As in England, this is set locally: some Welsh councils, particularly in areas with a high concentration of holiday homes, have applied premiums at or near the maximum, while others charge less or nothing.
What changed in Scotland from April 2026?
Scottish councils had been able to charge a premium of up to 100% on second homes since 1 April 2024. From 1 April 2026, Scottish Government guidance establishes a 100% national default rate for the second-homes premium, but local authorities can now vary that rate up or down, applying a higher premium, a lower one, or none at all, rather than being capped at 100%. In practice this has produced a wide spread across Scotland: some councils have kept the previous 100% level, while others have set materially higher premiums for their area. If you own or are considering a Scottish second home, check the specific premium your own local authority has set for the current financial year, since it can no longer be assumed to sit at 100%.
How do councils set and publish the premium?
In each nation, the premium percentage is a decision taken locally, usually as part of each council's annual budget-setting process, typically in the preceding February or March. Councils publish the rate that applies in their area on their own council tax pages, alongside the base council tax charge for each valuation band. Because the figure is set locally and reviewed annually, a single UK-wide number is never the full picture; always check the specific council area a property sits in, and check again if the property changes hands or the new tax year begins.
Are there exceptions or exemptions?
Each nation sets its own list of classes exempted from the premium, commonly including situations such as a property being actively marketed for sale or let, undergoing major repair or structural work, forming part of someone's job (for example a job-related dwelling), or being an annexe used as part of the main home. The exact exemption classes and how long they last vary by council and by nation, so check the specific council's own published exceptions list rather than assuming a UK-wide rule applies.
Can a holiday let avoid the council tax premium by moving to business rates?
If a property is genuinely run as a commercial holiday let rather than kept as a private second home, it may be assessed for business rates instead of council tax, which can bring it into scope for Small Business Rate Relief. Since 1 April 2023, England requires the property to be available to let commercially for at least 140 days in the coming 12 months, and to have actually been let commercially for at least 70 days in the past 12 months, and to have been available for at least 140 days in that past 12 months as well. Days when the property was closed for repair, or the site itself was closed, can be excluded from the count. A property that fails the test falls back onto council tax, potentially including the second-homes premium.
Wales sets a tighter test: a self-catering property must be available to let for at least 252 days a year and actually let for at least 182 days a year. From 1 April 2026, an average across 2 of the last 3 years can be used as evidence where the most recent year alone falls short, and up to 14 days of short breaks arranged through a registered charity can count toward the 182-day letting total. Scotland treats self-catering property differently under its own non-domestic rates system, and the day-count style test used in England and Wales does not apply there in the same form; check directly with the relevant Scottish assessor if this matters to a specific property.
What is the High Value Council Tax Surcharge coming in 2028?
A new High Value Council Tax Surcharge has been proposed for England, payable annually by owners of properties valued, using 2026 prices, at £2 million or more. As proposed, it would run: £2,500 a year for homes valued between £2 million and £2.5 million, £3,500 for £2.5 million to £3.5 million, £5,000 for £3.5 million to £5 million, and £7,500 for homes above £5 million. This would sit on top of, not instead of, ordinary council tax and any second-homes premium that already applies. The government ran a design consultation on the surcharge from 19 May to 14 July 2026, so the valuation method, payment mechanics and any exemptions could still change before it takes effect from April 2028. Treat this as a proposal moving toward implementation, not a settled tax, until the outcome of that consultation is published.
Work out your own numbers
- Running costs calculatorAdd your council's own premium to see the real annual cost.
- Stamp duty calculatorWhat buying the property costs before you hold it.
- Mortgage affordability calculatorResidential and buy-to-let ICR stress tests.
Common questions
Does every council charge the maximum premium?
No. The percentages above are ceilings each nation allows; individual councils choose whether to charge a premium at all and how high, up to that ceiling, as part of their own annual budget process, so actual bills vary considerably by area.
Does the premium apply to a home that is genuinely for sale?
Most councils exempt a property being actively marketed for sale or let for a defined period, but the exact exemption class and time limit is set locally, so check the specific council's published exceptions before assuming a property qualifies.
Is the £2m surcharge definitely happening in 2028?
It is a stated government proposal with a consultation that closed in July 2026, not yet finalised legislation with confirmed detail on valuation and administration. Watch for the consultation response before treating the figures as fixed.
Sources
- House of Commons Library, Why am I paying a council tax premium on my second home?, checked 15 September 2026.
- GOV.UK, Guidance on the implementation of the council tax premiums on long-term empty homes and second homes, checked 15 September 2026.
- GOV.WALES, New tax rules for second homes, checked 15 September 2026.
- gov.scot, Local government finance circular 6/2026: council tax on second and long-term empty homes guidance, checked 15 September 2026.
- GOV.UK, Apply for business rates for a self-catering property in England, checked 15 September 2026.
- GOV.UK, Apply for business rates for a self-catering property in Wales, checked 15 September 2026.
- GOV.UK, High Value Council Tax Surcharge consultation, checked 15 September 2026.
- House of Commons Library, briefing CBP-10934, checked 15 September 2026.
Last reviewed 15 September 2026. Next review March 2027, or sooner if the High Value Council Tax Surcharge consultation reports. Written by the OwnersLog team from the official sources listed above. No professional reviewer is named on this page yet.
This guide is general information about how the rules work, not financial, tax, legal or mortgage advice, and it cannot account for your circumstances. Confirm anything that matters with a qualified professional, and with your own local council for the exact premium and exemptions that apply. See the full disclaimer.