Taxpayers could be charged up to 300% extra council tax if their property has been empty for over 12 months

Taxpayers could be facing additional council tax charges of up to 300% if their home has been empty for longer than 12 months, unless their property is up for sale, say leading audit, tax and business advisory firm, Blick Rothenberg.

Matt Crawford, a Partner at the firm, said: “Council Tax bills will be landing on doormats across the country over the coming months, but many people are unaware that in England & Wales local authorities are able to charge additional Council Tax charges, known as premiums, when a property has been empty for a period of time.

“These premiums can be up to 100% of the standard Council Tax change where a property has been empty for over twelve months, 200% where the property has been empty for five years and a staggering 300% where a house is left unoccupied for over ten years. For a band G property in Cornwall, a 100% surcharge would equate to approximately £3,900 a year and a 300% charge equates to a staggering sum of over £11,700 in additional charges.

“It is important for owners of empty properties to be aware that additional reliefs have been put into statute from 1st April 2025 to limit the circumstances in which these premiums can be charged. Where the property is on the market for sale or for rental, it is possible to claim an exemption so that the additional charge does not apply for a twelve-month period.”

He added: “However, taxpayers should not try to game the system by putting their property on the market (whether for rental or purchase) with an unrealistic price to qualify themselves for the exemption, as in order to be valid, the property must be actively marketed for sale or rental at a reasonable price.

“Property owners who are claiming the exemption would be wise to keep evidence of valuations from third party agents as well as screenshots of the property being active for sale on any estate agent websites or property portals. “From April 2025 Councils will also have the power to levy a charge of 100% on homes which are ‘periodically occupied’, this will particularly impact owners of holiday homes. However, the exceptions for empty properties will also apply for any holiday home which has been placed on the market.”