Council Tax on Second Homes — 2026 Rules
New 2026 rules for council tax on second homes. Learn about the 100% premium, exemptions, and how the changes affect holiday homes and investment properties.
Major Changes to Second Home Council Tax in 2026
If you own a second home in England, the rules have changed significantly. Since April 2025, councils have had the power to charge a 100% council tax premium on second homes — effectively doubling your bill. Many councils are now implementing this, and 2026 will see even wider adoption.
What Is the Second Home Premium?
The Levelling Up and Regeneration Act 2023 gave English councils the power to charge a 100% premium on furnished properties that are not anyone's main residence. This means:
- Standard rate: £2,128/year (Band D average)
- With 100% premium: £4,256/year (Band D average)
That's a significant increase, and it applies to holiday homes, inherited properties, and any furnished property that isn't your primary residence.
🔍 Check your council tax band now — it takes 10 seconds
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Check My Band arrow_forwardWhich Councils Are Charging the Premium?
As of 2026, the majority of councils with significant second home ownership have implemented the premium. This includes popular areas like:
- Cornwall — one of the first to implement
- North Norfolk
- South Lakeland / Westmorland and Furness
- Pembrokeshire (Wales has had similar powers since 2017)
- North Devon
- Scarborough / North Yorkshire
Check with your specific council to confirm whether they've adopted the premium.
Exemptions from the Premium
Properties Being Sold
Some councils exempt properties that are actively being marketed for sale, typically for up to 12 months. You'll need to provide evidence from an estate agent.
Job-Related Properties
Properties occupied for work purposes (e.g., armed forces accommodation) may be exempt. This must be a genuine work requirement, not just convenience.
Annexes
Annexes forming part of a main property may be exempt if they're used by a relative of the main occupant.
The Business Rates Alternative
One common strategy for second home owners is to switch from council tax to business rates by letting the property commercially. To qualify, the property must be:
- Available for letting for at least 140 days per year
- Actually let for at least 70 days per year
Properties qualifying for business rates may also benefit from Small Business Rate Relief, potentially reducing the bill to zero. However, HMRC scrutiny of these arrangements has increased significantly.
🔍 Check your council tax band now — it takes 10 seconds
Compare your band with neighbours and find out if you're overpaying.
Check My Band arrow_forwardWales and Scotland
Wales
Wales has had the power to charge second home premiums since 2017. From April 2023, the maximum premium increased to 300%. Several Welsh councils now charge 100-300% premiums on second homes.
Scotland
Scotland allows councils to charge up to 100% premium on second homes. Many Scottish councils have implemented this, particularly in popular tourist areas like the Highlands.
Make Sure Your Band Is Correct
If you're paying double council tax on a second home, it's more important than ever to ensure the property is in the correct band. A band reduction saves you twice as much when a premium applies. Use our free checker to compare your second home's band with neighbouring properties.
Frequently Asked Questions
How much council tax do I pay on a second home? expand_more
From April 2025, councils in England can charge a 100% premium on second homes — meaning you pay double the standard rate. Not all councils have implemented this yet, but many have. Check with your local council.
Can I avoid the second home premium? expand_more
Limited exemptions exist. Properties being actively marketed for sale may be exempt for up to 12 months. Some councils exempt properties that are job-related (e.g., armed forces accommodation). Switching to business rates by letting the property for 70+ nights/year is another option.
What's the difference between a second home and an empty property? expand_more
A second home is furnished and used periodically (e.g., a holiday home). An empty property is unoccupied and typically unfurnished. Both face premium charges, but the rules and exemptions differ.