Council Tax Premiums

Under Section 139 of the Housing (Wales) Act 2014, the Council has determined to charge a Council tax premium of 50% on long-term empty properties and periodically occupied properties with effect from the 1st April 2017.

What is a long-term empty property?

A long-term empty property is one which is both unoccupied and substantially unfurnished for a continuous period of one year.

There are a number of exemptions which mean that Council Tax does not have to be paid on an empty property, the table below shows details of exemptions available.

Example of when a Council tax Premium will apply:

Circumstances Council Tax Charge Period
Property becomes unoccupied & unfurnished on 1st June 2016 0% 01/06/2016-30/11/2016 (Class C)
Property remains unoccupied & unfurnished 100% 01/12/2016-31/05/2017
Property unoccupied & unfurnished for one year 150% 01/06/2017

 

In addition, there will be a number of exception classes which apply specifically to long-term empty properties. Where a long-term empty property falls within one of these classes, the Council will not be able to charge a Council Tax premium.

Premium Exception Classes Definition
Class 1 Dwellings being marketed for sale (time limited for one year)
Class 2 Dwellings being marketed for let (time limited for one year)
Class 3 Annexes forming part of, or being treated as part of, the main dwelling
Class 4 Dwellings which would be someone's sole or main residence if they were not residing in armed forces accommodation

What is a periodically occupied property?

A periodically occupied property (second/holiday home) is defined in the Local Government Finance Act 1992 as "a dwelling which is not a person's sole or main home and is substantially furnished".

There are a number of exemptions which mean that Council Tax does not have to be paid on a property which is occupied - the table below shows for details of exemptions available.

Circumstances Council Tax Charge Period
Property was purchased on 1st May 2014 and is a furnished second home 100% 01/04/2014-31/03/2017
Property continues to be used as a second home 150% 01/04/2017-31/08/2017
Property placed on market for sale on 1st Sep 2017 100% 01/09/2017- 31/08/2018 (Class 1 exception to the premium applied for one year
Property remains on market 150% 01/09/2018

 

In addition, there will be a number of exception classes which apply specifically to periodically occupied properties Where a periodically occupied property falls within one of these classes, the Council will not be able to charge a Council Tax premium.

Premium Exception Classes Definition
Class 1 Dwellings being marketed for sale (time limited for one year)
Class 2 Dwellings being marketed for let (time limited for one year)
Class 3 Annexes forming part of, or being treated as part of, the main dwelling
Class 4 Dwellings which would be someone's sole or main residence if they were not residing in armed forces accommodation
Class 5 Occupied caravan pitches and boat moorings
Class 6 Seasonal homes where year-round occupation is prohibited
Class 7 Job-related dwellings
Clear