Correspondence

Council Tax information letter 5/2024: Exceptions to council tax premiums

Published 1 November 2024

Applies to England

To: Local authorities in England - For the attention of the Council Tax section

From: Local Taxation Division, Ministry of Housing, Communities and Local Government (council.tax@communities.gov.uk)

Date: 1 November 2024

The Council Tax (Prescribed Classes of Dwellings and Consequential Amendments) (England) Regulations 2024

This letter summarises the provisions of the Council Tax (Prescribed Classes of Dwellings and Consequential Amendments) (England) Regulations 2024 (the ‘regulations’) which set out mandatory exceptions to the long-term empty homes premium and the second homes premium.

These regulations were laid before Parliament on 8 October 2024 and will come into force today, 1 November 2024. The government has also published guidance for councils and taxpayers on the application and administration of council tax premiums and exceptions to accompany the regulations.

The exceptions to the council tax premiums will have effect from 1 April 2025, in line with when councils will have the power to charge the second homes premium. The exceptions provided for in the regulations mirror those which were published in the consultation document and the information letter to local authorities published in March 2024.

The regulations broadly set out the classes of dwelling for which a council tax premium cannot be charged and clarifies the qualifying period for the exceptions. The table at Annex A summarises the mandatory exceptions which will apply to the second and long-term empty homes premiums.

In addition to mandatory exceptions, councils have the power to set their own exceptions to premiums as part of their determinations. Councils cannot amend their determination in year. However, councils continue to have powers, through section 13A of the Local Government Finance Act 1992, to provide a discount for households where they consider this appropriate. It is ultimately for councils to decide, based on regulations and local circumstances, whether it is appropriate for a premium to apply.

The guidance provides further information to councils on the application and administration of the council tax premiums and exceptions. The guidance also serves as a source of information to taxpayers on how the premiums are applied and the limited scenarios where the exceptions to the premiums will apply. Councils are required to have due regard for guidance in making any decision to charge a premium.

We hope that you find this helpful.

Should you have any queries, please contact the Department at: council.tax@communities.gov.uk.

Annex A: Table showing the exceptions which apply to the council tax premiums

Classes of Dwellings	Application	Definition
Class E	Long-term empty homes and second homes	Dwelling which is or would be someone’s sole or main residence if they were not residing in job-related armed forces accommodation
Class F	Long-term empty homes and second homes	Annexes forming part of, or being treated as part of, the main dwelling
Class G	Long-term empty homes and second homes	Dwellings being actively marketed for sale  (12 months limit)
Class H	Long-term empty homes and second homes	Dwellings being actively marketed for let  (12 months limit)
Class I	Long-term empty homes and second homes	Unoccupied dwellings which fell within exempt Class F and where probate has recently been granted (12 months from grant of probate/letters of administration)
Class J	Second homes only	Job-related dwellings
Class K	Second homes only	Occupied caravan pitches and boat moorings.
Class L	Second homes only	Seasonal homes where year-round, permanent occupation is prohibited, specified for use as holiday accommodation or planning condition preventing occupancy for more than 28 days continuously
Class M	Long-term empty home only	Empty properties requiring or undergoing major repairs or structural alterations  (12 months limit)