If you have two homes, you may have to pay Council Tax for both of them, unless an exemption applies.
You’ll have to pay the usual Council Tax for the property which is your main home – this will usually be either 100% or 75%, depending on how many people live there. But you may also have to pay for the second home.
Empty second homes
If your second home is empty, an exemption will apply for up to six months, starting from the date the property became both unfurnished and unoccupied. When the exempt period ends, the full Council Tax is payable (up to 1/4/2005, it was 50%.).
If you buy a property which became both unfurnished and unoccupied before you bought it, the previous owner may have already had the 6 month exemption or part of it. If so, you will have to pay full Council Tax straight away or when the remaining exemption ends. No new 6 month exemption begins with a change in ownership.
Furnished second homes
If you have a second home which is furnished but is not your main home, a 90% Council Tax is payable (up to 1/4/2004, the amount payable for this type of property was 50%.)
When looking at whether homes are furnished or not for Council Tax, we usually disregard white goods, carpets and curtains. If there are more than a few items of movable furniture however, we would class your home as being furnished. As such, a property does not have to be fully furnished to attract a 90% charge.
‘Job-related’ second homes
If you live in a specific property because of your job, different rules may apply.
If your main residence is somewhere else, the 'job-related dwelling' may qualify for a 50% discount. Or, if the ‘job-related dwelling’ is your main residence, your other home may qualify for the 50% discount.
This only applies if the dwelling is provided by your employer. Also, one of the following things must apply to the job-related dwelling:
- the duties of the job make it necessary for you to live in that particular property; or
- you can carry out your job better by living in that particular property, and it is usual for employers to provide accommodation in that type of job; or
- there is a special threat to your security, so special security arrangements have been made and you have to live in the property because of those arrangements; or
- your contract requires you to live in that particular property.
Cases where the discount might apply include:
- publicans who have their own house but their contracts say they have to live in the pub they run;
- school caretakers who have a home elsewhere but their contracts say they must live on or near the school, in accommodation provided by the employer;
- ministers of religion who have their own home but have to live in other accommodation provided by the church in order to carry out their duties as a minister.
Please note that:
- special rules apply if the employee is a director of the company which employs him and lives in a dwelling provided by the company;
- the job-related discount does not apply if a person lives in a dwelling provided by a trade or business partner;
- the job-related discount only applies where both homes concerned are in England, Scotland or Wales;
- you cannot claim Council Tax benefit for a second property.