Council Tax for empty properties and second homes

• dwelling which would be someone’s main residence if they were not residing in job-related armed forces accommodation
• a dwelling which is or would be the sole or main residence of a member of the armed services, who has been provided with a dwelling as a result of such service

• annex which is treated as part of the main dwelling
• a dwelling which forms part of a single property with one or more other dwellings that is being used by a resident of one of the other dwellings as part of their sole or main residence

• dwelling being actively marketed for sale

The government has been clear that it is not the intention to penalise those who are genuinely trying to bring their dwelling back into use as a sole/main residence.

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

• the same owner may only make use of the exception for a particular dwelling marketed for sale once
• the exception may be used again for the same dwelling if it has been sold and has a new owner

There are several factors we may take into consideration when assessing whether a dwelling is being actively marketed for sale. These may include whether

• the dwelling is clearly advertised for sale
• the dwelling is being marketed at a fair market value
• there are any artificial barriers on the dwelling preventing sale
• the dwelling has an Energy Performance Certificate (EPC)
• the owner is taking any other reasonable steps to market the dwelling for sale

The government has been clear that it is not the intention to penalise those who are genuinely trying to bring their dwelling back into use as a sole/main residence.

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 conditions will apply to this exception

• the same owner may make use of the exception for dwellings marketed for let multiple times, however, only after the dwellings has been let for a continuous period of at least six months since the exception last applied

There are several factors we may take into consideration when assessing whether a dwelling is being actively marketed for let. These may include whether:

• the dwelling is clearly advertised for let
• there are any artificial barriers on the dwelling preventing let
• the dwelling has an Energy Performance Certificate (EPC)
• the owner is taking any other reasonable steps to market the dwelling for let

• unoccupied dwelling where probate has recently been granted

There is an existing council tax exemption for dwellings undergoing probate. When a dwelling has been left empty following the death of its owner or occupant, it is exempt from council tax for as long as it remains unoccupied and until probate is granted. Following a grant of probate (or the issue of letters of administration), a further six months exemption is possible, so long as the dwelling remains unoccupied and has not been transferred by the executors or administrators to the beneficiaries or sold to anyone else.

Following a grant of probate the owners of the dwelling may require further time to decide how they will manage the home or sell it. The Regulations provide for a 12-month exception to the premium for both second and empty homes. The 12-month period begins from the point probate is granted or letters of administration have been issued. This runs concurrently with the six-month exemption.

This exception will run for 12 months or until the dwelling has changed owner by being sold.

• empty dwelling requiring or undergoing major repairs or structural alterations

In some cases a dwelling may require major repair work before it can be occupied.

Where a dwelling requires or is undergoing major repairs or is undergoing structural alteration it may be excepted from the empty home premium for up to 12 months.

Where major repairs are completed in less than 12 months, the exception will still apply to the dwelling for up to six months or until the end of the 12 months whichever is sooner.

This exception only applies on empty homes. This exception cannot apply again unless the dwelling has been sold. If the dwelling is substantially furnished and becomes a second home without a resident, then this exception will end.

The government has been clear that it is not the intention to penalise those who are genuinely trying to bring their dwelling back into use as a sole/main residence.

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

• the same owner may only make use of the exception for a particular dwelling marketed for sale once
• the exception may be used again for the same dwelling if it has been sold and has a new owner

There are several factors we may take into consideration when assessing whether a dwelling is being actively marketed for sale. These may include whether:

• the dwelling is clearly advertised for sale
• the dwelling is being marketed at a fair market value
• there are any artificial barriers on the dwelling preventing sale
• the dwelling has an Energy Performance Certificate (EPC)
• the owner is taking any other reasonable steps to market the dwelling for sale

The government has been clear that it is not the intention to penalise those who are genuinely trying to bring their dwelling back into use as a sole/main residence.

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 conditions will apply to this exception:

• the same owner may make use of the exception for dwellings marketed for let multiple times, however, only after the dwellings has been let for a continuous period of at least six months since the exception last applied

There are several factors we may take into consideration when assessing whether a dwelling is being actively marketed for let. These may include whether:

• the dwelling is clearly advertised for let
• there are any artificial barriers on the dwelling preventing let
• the dwelling has an Energy Performance Certificate (EPC)
• the owner is taking any other reasonable steps to market the dwelling for let

• dwelling where probate has recently been granted

There is an existing council tax exemption for dwellings undergoing probate. When a dwelling has been left empty following the death of its owner or occupant, it is exempt from council tax for as long as it remains unoccupied and until probate is granted. Following a grant of probate (or the issue of letters of administration), a further six months exemption is possible, so long as the dwelling remains unoccupied and has not been transferred by the executors or administrators to the beneficiaries or sold to anyone else.

Following a grant of probate the owners of the dwelling may require further time to decide how they will manage the home or sell it. The Regulations provide for a 12-month exception to the premium for both second and empty homes. The 12-month period begins from the point probate is granted or letters of administration have been issued. This runs concurrently with the six-month exemption.

This exception will run for 12 months or until the dwelling has changed owner by being sold.

Seasonal homes where year-round, permanent occupation is prohibited or use is specified as holiday accommodation or planning conditions prevent occupancy for more than 28 days continuously.

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. Examples include headteachers for boarding schools who are required to live in school accommodation, or certain care workers who need to live on site to carry out their role.

The council tax system already contains provisions which ensure that in certain circumstances these dwellings receive a 50% council tax discount. The government does not intend to change the discounts which these dwellings receive. The exceptions mirror the provisions of these discounts to ensure these dwellings continue to receive these discounts.

No premium will be charged if a caravan pitch or boat mooring has an unoccupied caravan or boat on it.

• a dwelling which forms part of a single property with one or more other dwellings that is being used by a resident of one of the other dwellings as part of their sole or main residence
  

Holiday lets are valued for Business Rates if:

• in the last 12 months the property has been available to let commercially for short periods of at least 140 nights; and
• the property will be available to let commercially for short periods of at least 140 nights in the next 12 months; and
• in the last 12 months the property has actually been let commercially as self-catering accommodation for short periods of 70 nights or more

Holiday lets will initially need to be charged Council Tax for at least 140 days. The property can only be assessed for Business Rates once all of the above criteria are met.

The Valuation Office Agency will decide whether your holiday let should be listed for Business Rates or Council Tax. This decision is not made by Isle of Wight Council Council.

If you meet the above criteria you can ask the Valuation Office Agency to move your holiday let from Council Tax to Business Rates.

Go to the Valuation Office Agency website