Council Tax Premium - Second homes and furnished properties that are not a main residence

Section 139 of the Housing Act (Wales)  2014 has appended Section 12B to the Local Government Finance Act 1992  to  provide a discretionary provision  to councils to raise a “premium” of no more than 100% on second homes (class B – properties with no occupation restriction). Note that what is defined here is a dwelling where there is no resident, and the dwelling is substantially furnished.

The Act does not provide for differentiation on the basis of where the owner lives or if it`s used for holiday purposes.

Gwynedd Council  decided  on 8 December 2016  that a 50% premium will be raised on second homes (class B)  from  1 April  2018 onwards

The Act also has a provision that specifies  classes of exemptions  where the raising of a Council Tax premium is prohibited, and these are listed below.

Classes of Dwellings Defninition 
 Class 1 Dwellings being marketed for sale - time-limited for one year 
 Class 2   Dwellings being marketed for let - time-limited for one year
 Class 3   Annexes forming part of, or being treated as part of, the main dwelling
 Class 4  Dwellings which would be someone's sole or main residence if they were not residing in Armed Forces accommodation
 Class 5   Occupied caravan pitches and boat moorings
 Class 6   Seasonal homes where year-round occupation is prohibited
 Class 7   Job-related dwellings

*The time limitation of one year for Class 1 and Class 2 is effective from now  – i.e if the property is for sale or for let now, then the 12 month period will have started  from the date that the property was placed on the market.

The Council has already contacted owners of second homes and furnished unoccupied properties and responses will receive attention soon. If you did not respond then contact the Taxation Service if your property falls into one of the above  exception classes.  

An additional 50% Council Tax Premium will be raised from 1 April 2018 on any property that is recognised as a second homes or furnished unoccupied property, and where no exception is applied to it.