Since April 2025, English councils have had the power to charge up to double the standard council tax rate on second homes, and the majority have taken it. This guide covers exactly how the premium works across England, Wales and Scotland, the nine statutory exceptions that can protect you, the landlord trap most guides miss, and the separate charge stacking on top from 2028.
Figures below reflect the Local Government Finance Act 1992 as amended by the Levelling-up and Regeneration Act 2023, Hamptons research (December 2025), and GOV.UK guidance, current to mid-2026. This is general information, not tax advice; council-specific rates and exception applications should be confirmed directly with your local billing authority.
1. What actually counts as a second home
For council tax purposes, a second home is a dwelling that is substantially furnished but has no resident, meaning it is not anyone's sole or main residence. This is a genuinely different, and importantly broader, definition than most people expect: the legislation doesn't use the phrase "second home" at all, it describes the property by its condition, furnished and unoccupied, which is precisely why it can catch situations well beyond the classic holiday cottage.
2. The rates: England, Wales, Scotland
| Nation | Maximum premium | Effective from |
|---|---|---|
| England | Up to 100% (doubles the standard bill) | 1 April 2025, council by council |
| Wales | Up to 300% | 1 April 2023 |
| Scotland | Previously capped at 200%; cap removed entirely | 1 April 2026 (some councils, including Midlothian, setting premiums as high as 500%) |
Each council decides independently whether to charge the premium and at what level, up to the statutory maximum. According to Hamptons research published December 2025, 211 of England's 296 billing authorities had switched the premium on during 2025, with a further 38 confirmed for April 2026, taking adoption to roughly 84% of English councils within two years of the power being granted. Coastal, rural, and high-second-home-ownership areas moved first; that wave is now reaching councils that hadn't previously bothered.
3. The nine statutory exception classes
Nine mandatory exception classes (E to M), set out in the Council Tax (Prescribed Classes of Dwellings) (England) Regulations 2024, protect specific situations from the premium regardless of a council's own policy. The most commonly relevant include:
- Class E: annexes forming part of, and used alongside, the main residence.
- Class F: job-related accommodation, where you're required to live elsewhere for work.
- Class G: properties with planning restrictions or conditions preventing permanent, year-round occupation.
- Class H: properties genuinely marketed for sale or let, protected for up to 12 months, and reusable after a further 6 months of continuous letting.
- Class M: properties requiring or undergoing major repairs or structural alteration, protected for up to 12 months, available once only.
A further exception applies where a property has recently passed through probate: no premium is generally due for up to 12 months following the grant, covered in more detail in our Care Home Funding and Property and Keep or Sell an Inherited Property guides.
4. The landlord trap between tenancies
This is the detail that catches out landlords most often: a furnished rental property standing empty between tenants counts as a second home immediately, not after some grace period, unless one of the exception classes above genuinely applies. Class H is the one landlords rely on most, marketing the property for let, but it requires genuine, evidenced marketing activity (listing dates, agent instructions), not simply an intention to relet eventually. If a property sits empty and furnished without active marketing evidence, the premium can apply from day one of the void.
5. The holiday let escape route
A property genuinely operated as a furnished holiday let, meeting HMRC's letting-day thresholds, is assessed for business rates rather than council tax, and can sidestep the second home premium entirely through that separate classification. Note that this business-rates classification is distinct from the FHL income tax regime that was abolished in April 2025 (covered in full in our Holiday Lets After FHL Abolition guide); the tax treatment of the income changed, but the separate business-rates route for the property itself remains available if genuine letting thresholds are met and maintained. Fall below the threshold in any year, and the property reverts to council tax and the second home premium.
6. The 2028 High Value Council Tax Surcharge
A separate charge, sometimes described as a "mansion tax," is due to apply from April 2028 to properties valued over £2 million, adding an estimated £2,500 to £7,500 a year depending on value, collected alongside standard council tax. This is a genuinely distinct charge from the second home premium and can stack on top of it: a high-value second home in a council already charging the maximum premium could face both charges simultaneously once the surcharge takes effect.
7. Frequently asked questions
How much extra council tax do I pay on a second home?
In England, councils can charge a premium of up to 100% from 1 April 2025, effectively doubling the standard bill. In Wales, premiums of up to 300% apply. In Scotland, the previous 100% cap was removed entirely from April 2026, with some councils, including Midlothian, setting premiums as high as 500%.
Does a rental property standing empty between tenants count as a second home?
Yes, potentially from the very first day. For council tax purposes, a second home is any furnished property with no resident, which includes a landlord's property sitting empty and furnished between tenancies, unless one of the statutory exception classes applies, most commonly Class H for a property genuinely marketed for sale or let.
Are there any exemptions from the second home council tax premium?
Yes, nine statutory exception classes (E to M) apply, covering situations including annexes used as part of the main residence, job-related accommodation, planning restrictions preventing permanent occupation, properties recently inherited and awaiting probate, and properties genuinely being marketed for sale or let.
Is the second home premium the same as the new High Value Council Tax Surcharge?
No, they are separate charges that can stack. The second home premium applies based on occupancy status regardless of value. The High Value Council Tax Surcharge, due to take effect alongside council tax from April 2028, is a separate charge specifically for properties valued over £2 million, and would apply in addition to any second home premium already owed.
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