If you have an empty property, you’re probably hoping to avoid paying council tax. It makes sense that you shouldn’t need to pay for a home that no one lives in. Unfortunately, the bad news is that councils often don’t see it that way.
There are ways to avoid paying council tax on an empty property but usually only for a short period. However, there are also discounts available for a multitude of reasons. Here we’ll break them down for you to try and save you money off your council tax bill.
Let’s take a look and see if it’s possible.
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How to Avoid Paying Council Tax On An Empty Property?
Can You Avoid Council Tax on an Empty Property?
If you have an empty property because it is a second home, then you can’t avoid paying council tax. It needs to fall under a specific set of circumstances that only apply to a small number of people to get an exemption or a discount.
What’s more, you may even need to pay a premium if your property stays empty and unfurnished. For example, if you have had an empty property for over ten years, some councils will charge you four times the standard council tax rate, with many charging double council tax after two years.
If you have an empty property due to the likes of inheritance, structural damage, or because the owner had no choice but to move out, that’s when you can get a short-term exemption. We’ll explain these in a little more detail in the next section.
Council Tax Exemptions for an Empty Property
As we mentioned, you’ll only get a full discount for specific reasons. Let’s check out what they are:
Death of the owner
If you’ve taken on the care of a property as the owner has passed away, you’ll be given plenty of time to sell/inhabit the property before you are liable for council tax.
No council tax will be due until probate if it is empty. Even once probate is completed, many councils will give you six months of grace if the home remains occupied and is still in the deceased’s name. If you have inherited the property and it’s now in your name, you’ll need to start paying council tax.
Prison
It may be a small crumb of comfort, but if you’re just about to head off to prison and you are the sole occupant, you won’t need to pay council tax. Also, a discount can be applied if someone you’re living with is going to prison.
Care Home/Hospital
If the home’s occupants can no longer live there due to an extended period of ill health, they won’t need to pay council tax.
Unliveable property
If the home has been repossessed, is subject to a compulsory purchase order, or is derelict, it’ll be exempt. It’s worth noting that this doesn’t apply to properties that are having major repair work or, for example, an extension. While you won’t avoid paying council tax in this scenario, your council may give you a discount.
What Are Empty Property Premiums?
If a homeowner leaves a property empty and unfurnished for no good reason, then councils will not only charge you for tax on the property but can charge a premium for it. It’s worth noting that councils have a lot of discretion regarding how they charge council tax and how much they charge.
Due to this, it’s a good idea to contact your council about what you’ll be charged and when. For example, many councils will increase your tax rate after two years, then increase it after five and then increase it again after ten. However, rules will differ slightly from one council to another.
If this applies to you, then all you need to do is ensure the home is furnished. You’ll have to pay the normal rate of council tax but won’t have to worry about being charged premiums.
You could have an empty property due to structural repairs or perhaps damage from a fire or flood. In these circumstances, many councils will give you a discount of 50% and usually for 12 months. The exact discount and the time given are up to the individual council.
Should You Rent Your Property?
There is one surefire way not to pay council tax: have someone else pay it for you! If you have a tenant and don’t live in your property, you won’t be liable for the council tax. If you know you’ll have an empty property for an extended period, consider renting it.
Say you are a landlord and your tenant has vacated the property before the end of the contract, they will still be liable for the remainder of the lease. For example, if they signed a 12-month lease but left after a month, they will be liable for the next 11 months of council tax, not you.
How to Reduce Council Tax
If you clicked on this article hoping to avoid paying council tax, then you’re probably a little disappointed by now. The good news is that there are a few ways of getting a discount and saving a little money on your empty property.
Single Person Discount
If you’re the sole owner of the property, then you’ll likely be able to get single persons discount. Here you’ll get a 25% reduction in your council tax bill for as long as the property is the responsibility of a single eligible adult.
Disregarded Persons
There are also a group of people that are disregarded when it comes to council tax. For example, a sole adult living with two ‘disregarded’ persons would still be able to get the single person discount.
Crucially, if everyone in the property is disregarded, you can get a 50% discount.
Those counted as disregarded are:
Young Person
Anyone aged 17 or under isn’t counted. This can extend up to the age of 19 if they are still applicable for child benefit and/or are in full-time education.
Education
A full-time student, student nurse, someone on a government training scheme, and some apprenticeships are a few examples of when education or training can make you exempt.
Unable to live at home
Not being able to live at your home due to ill health (both mental and physical), needing to stay in a hostel for your safety, or being in detention would all mean you’re counted as a disregarded person.
Disabled
Those with severe disabilities that need care, such as a dementia patient, would be disregarded.
For example, you own a property with your partner but are both in long-term hospital/care. Here you’d have an empty property and not be liable for council tax. However, if your 21-year-old child lives at the property but is studying for a degree, you would need to pay 50%.
That’s because all owners/occupants would be counted as disregarded, but as someone is living at the property, a 50% charge would apply.
Contact Your Council
There are several reasons why the council may reduce your tax. The problem here is that they are all different. One may give you a reduction if you need a second home due to your employment, but a different council may not give you a reduction.
It’s worth contacting your council to see if a reduction applies if you are:
- A single person
- Full-time student
- Disabled
- A carer
- Mentally impaired
- An apprentice
- An active member of a religious community
- Live with someone who is imprisoned
- Foster carer
Of course, many of these don’t apply to someone with an empty property. But it’s worth considering how you register that empty property, especially if it can cut down on your overall bill.
The Bottom Line
What support you’ll get will depend on why you have an empty property. If the home has been left to you in inheritance, you have a period of time without paying tax to either occupy or sell the property. This is usually six months.
If you use it as a holiday home, you’ll need to pay the full rate of council tax. However, for those with an empty property that needs structural repairs, you’ll often be given up to 12 months before you’ll need to start paying council tax again.
For those that own two properties, you may get a discount on both using our advice above. The only certain way to avoid council tax on a property that you own is to rent it out to someone else, who will then be liable.
Final Thoughts
When it comes to how to avoid paying council tax on an empty property, you can’t, not for an extended period of time anyway. You’ll most likely need to pay 100% of the council tax costs unless you’re entitled to a discount or exemption.
Every council is different, and therefore it’s always worth having a conversation with them. Check out what their rules are and how they apply to you. Hopefully, using our advice, you can save at least a little bit of money on your council tax bills.