Do You Pay Council Tax on an Empty Property?

At Towerstone Accountants we provide specialist property accountant services for property owners landlords and individuals dealing with council tax and property related charges across the UK. This article has been written to explain do you pay council tax on an empty property in clear practical terms so you understand what applies to your situation. Our aim is to help you avoid confusion stay compliant and make informed decisions.

This is a question that causes a lot of confusion and often comes with an unpleasant surprise. Many people assume that if a property is empty, council tax stops automatically. Others believe there is a fixed grace period where nothing is payable. In reality, council tax on empty properties in the UK is governed by local authority rules, and in most cases, yes, you do still have to pay council tax even when a property is empty.

The amount you pay, how long you pay it for, and whether any discounts or exemptions apply depends on why the property is empty, how long it has been empty, and the specific policies of the local council. Over the past decade, councils have been given much more power to charge full council tax or even impose premiums on long term empty homes.

In this article, I will explain clearly and practically whether you pay council tax on an empty property, when discounts apply, when premiums kick in, and the common situations where people get caught out. This reflects how council tax is applied in the real world rather than outdated assumptions.

The basic rule you need to understand

The starting point is simple.

In most cases, council tax is still payable on an empty property.

Empty does not automatically mean exempt. The default position is that council tax is charged unless a specific discount or exemption applies.

This is why many owners continue to receive council tax bills even when no one is living in the property.

Why councils charge council tax on empty homes

Local councils charge council tax on empty properties for several reasons.

Council tax helps fund local services such as waste collection, social care, and infrastructure. Empty homes still benefit indirectly from these services.

There is also a policy reason. Councils want to discourage properties being left empty for long periods, particularly in areas with housing shortages.

As a result, the system has shifted over time from offering generous exemptions to encouraging occupation.

Short term empty properties and council tax

If a property becomes empty, for example because someone has moved out or died, council tax does not usually stop automatically.

In many council areas, the property moves straight onto a full council tax charge once it becomes empty.

Some councils offer a short discount period, but this is no longer guaranteed nationwide.

The old empty property exemption

Historically, there was a national exemption for empty and unfurnished properties for up to six months.

This no longer exists as a national rule.

Councils were given the power to set their own discounts, and many have reduced or removed them entirely.

This is one of the most common reasons people are surprised by their bill.

Empty and unfurnished properties

If a property is empty and unfurnished, council tax is usually still payable.

Some councils offer a small discount for a short period, often one month, but many charge the full amount from day one.

Whether a discount applies depends entirely on the local council’s policy.

You must inform the council when the property becomes empty. They will then apply the relevant charge.

Empty but furnished properties

If a property is empty but still furnished, council tax is almost always charged at the full rate.

Councils generally treat furnished empty properties as second homes or properties capable of occupation.

In most cases, there is no discount at all.

This often catches people out where a property is between tenants or awaiting sale.

Long term empty properties and council tax premiums

One of the most important changes in recent years is the introduction of council tax premiums on long term empty homes.

If a property has been empty for a long period, councils can charge more than the standard council tax rate.

When a property is classed as long term empty

A property is usually considered long term empty if it has been unoccupied and unfurnished for at least one year.

Once this threshold is reached, councils can apply an additional charge.

The length of time and the size of the premium depend on local policy and legislation.

How much extra council tax can be charged

Councils can charge significant premiums on long term empty properties.

In many areas:

• After one year empty, a premium of up to 100 percent can apply

• After several years empty, higher premiums may apply

This means the council tax bill can double or even increase further.

These premiums are designed to encourage owners to bring properties back into use.

Empty properties undergoing major repairs

There is a specific situation where council tax relief may apply.

If a property is empty because it is undergoing major structural repairs or extensive renovation, some councils offer a temporary exemption or discount.

This is not automatic and is time limited.

You usually need to demonstrate that:

• The property is genuinely uninhabitable

• Major works are required

• The property cannot reasonably be occupied

Even then, relief is often limited to a fixed period.

What counts as uninhabitable

Uninhabitable generally means the property cannot be lived in safely.

Examples may include:

• No working bathroom or kitchen

• Severe structural damage

• Dangerous electrics or gas

• Flood or fire damage

Cosmetic renovation does not usually qualify.

Painting, new kitchens, or modernisation alone are not enough to avoid council tax.

Empty properties after a death

When someone dies, council tax rules change temporarily.

If a property becomes empty following the death of the owner, council tax is usually exempt until probate is granted.

After probate, there is often a further short exemption period.

Once that period ends, council tax becomes payable again, even if the property remains empty.

This exemption applies only in specific circumstances and is closely monitored.

Empty properties awaiting sale or purchase

A very common misconception is that council tax is not payable while a property is for sale.

In most cases, this is not true.

Whether the property is on the market or not makes no difference to council tax liability.

If the property is empty, council tax is usually charged according to the council’s empty property rules.

The same applies if you have bought a property and have not yet moved in.

Council tax on empty rental properties

Landlords often ask whether council tax is payable between tenants.

In most cases, yes.

If a rental property is empty between tenancies, the landlord is usually responsible for council tax during that period.

Some councils offer short discounts, but many do not.

This is why void periods can be costly for landlords.

Who is responsible for council tax on an empty property

Responsibility depends on occupation.

If a property is empty, the owner is usually responsible for council tax.

This applies whether the property is owned personally, jointly, or through a company.

If tenants move out, responsibility typically transfers back to the landlord from the date the tenancy ends.

Second homes and council tax

Second homes are treated differently from long term empty properties.

A second home is usually furnished and occupied occasionally.

Councils have the power to charge full council tax on second homes, and some apply additional premiums.

There is no automatic discount for second homes.

Rules vary significantly by area.

How to find out your council’s policy

Because council tax rules for empty properties vary by local authority, it is essential to check the specific policy where the property is located.

Councils publish their council tax discount and premium rules on their websites.

You can also contact the council tax department directly for confirmation.

Never assume that what applies in one area applies in another.

What happens if you do not tell the council

Failing to inform the council that a property is empty or occupied can cause problems.

Councils can backdate council tax charges once they become aware of the situation.

This can result in large unexpected bills.

In some cases, penalties may apply if incorrect information is provided.

Always notify the council promptly of changes.

Can council tax be reduced or appealed

If you believe council tax has been charged incorrectly, you can challenge it.

This might apply where:

• An exemption should apply

• The property is genuinely uninhabitable

• The council has applied the wrong status

Appeals must usually be made within specific time limits and supported by evidence.

Council tax and empty properties owned by companies

Properties owned by limited companies are not treated differently for council tax purposes.

If the property is empty, council tax is still payable.

Premiums for long term empty properties apply regardless of ownership structure.

This often surprises investors who assume corporate ownership changes the position.

Common mistakes people make with empty property council tax

From real world experience, the most common mistakes include:

• Assuming council tax stops automatically

• Not realising discounts are local not national

• Forgetting to notify the council

• Assuming renovation avoids council tax

• Underestimating empty property premiums

These mistakes can be expensive.

Practical tips to manage council tax on empty properties

If you own an empty property, there are practical steps you can take.

Notify the council immediately when the status changes.
Ask what discounts or exemptions apply.
Keep records of dates and correspondence.
Factor council tax into your budget.
Avoid leaving properties empty long term if possible.

Proactive management reduces surprises.

Council tax versus business rates

In some limited cases, properties can move from council tax to business rates, for example certain holiday lets.

This is a separate system with different rules and should not be assumed.

Professional advice is often needed where this boundary is involved.

Why the rules have become stricter

The move towards charging council tax on empty properties reflects wider housing policy.

Councils face pressure to fund services and address housing shortages.

Empty homes are seen as underused assets, which is why financial pressure is applied.

This policy direction is unlikely to reverse.

A simple summary

In simple terms:

Yes, you usually pay council tax on an empty property.
Discounts are limited and depend on the council.
Long term empty properties can attract higher charges.
Renovation and sale do not usually remove liability.

Understanding this early helps avoid unexpected bills.

Final thoughts from real world experience

So, do you pay council tax on an empty property in the UK.

In most cases, yes. Empty does not mean exempt, and in some cases, it means paying more rather than less.

In my experience, council tax on empty properties causes frustration mainly because people rely on outdated assumptions. Once you accept that councils now expect empty properties to contribute, the rules make more sense.

Always check your local council’s policy and budget for council tax on empty properties. Assuming it will not apply is one of the most expensive assumptions you can make.

You may also find our guidance on do landlords pay council tax and what happens if you dont pay council tax helpful when reviewing your council tax position. For a full overview of council tax rules exemptions and reductions you can visit our council tax hub which brings all related guidance together.