Council Tax on second homes

Second homes

For Council Tax purposes, we consider a property a 'second home' where it is substantially furnished but nobody uses the property as their only or main home. 

Prior to 1 April 2025 the charge for a second home in the Dorset Council area is 100% (no discount).

From the 1 April 2025 Dorset Council will charge a 100% premium (twice the normal charge) on such properties unless they qualify for one of the exceptions shown.

If you have been sent a bill showing premium charges but you believe one of the exceptions could apply, let us know and send us any requested evidence to secondhomes@dorsetcouncil.gov.uk.

The full government guidance on exceptions can be viewed at Council Tax information letter 2/2024: proposals to exempt categories of dwellings from the council tax premiums in England (gov.uk).

We will not process your application unless the evidence required is received. You should continue to pay in line with any bills you have received whilst you await the outcome of your application.

Properties being actively marketed for sale

This exception is time-limited and can apply for up to 12 months from the point that the dwelling has first been marketed.

The exception ends when either the 12 months has expired, or the property is sold or is no longer actively marketed.

This exception can only apply once for the same owner of a particular property.

You will be asked to provide the following evidence:

• evidence that the property is clearly advertised for sale
• a letter from the estate agent or solicitor dealing with the sale confirming that it is advertised at a fair market rate
• a copy of the EPC certificate contained in the sale particulars
• evidence of any other reasonable steps you have taken to sell the property

Properties being actively marketed for let

This exception is time-limited and can apply for up to 12 months from the point that the dwelling has first been marketed.

The exception ends when either the 12 months has expired, or the property is let or no longer actively marketed.

This exception can only apply again on the same property following a continuously let period of at least 6 months.

You will need to provide the following evidence:

• evidence that the property is clearly advertised for let
• a letter from the letting agent or evidence that similar properties attract the same or similar rent, confirming that it is advertised at a fair market rate
• a copy of the EPC certificate contained in the sale particulars
• evidence of any other reasonable steps you have taken to let the property

Properties left empty because somebody has died

Where the property has fallen with in exempt class F (0% payable for up to 6 months following probate) because the previous resident has died, it can be excepted from the premium charge for up to a further 6 months where a full charge would apply. 

The exception ends when either:

• a full 12 months have expired following the grant of probate date
• the property has changed owner by being transferred to the beneficiaries
• the property is sold 
• the property is occupied

Job related dwellings

Where a property is provided by an employer, solely used for workers and it is furnished and no one's main home, it can be excepted from premium charges.

You may have to provide a contract of employment or tenancy agreement which shows that employees must live in the property in question.

These properties already receive a 50% Council Tax discount when unoccupied.

Occupied caravan pitches and boat moorings

Where a pitch or mooring is occupied by a caravan or boat, but it is no one's main residence, it will be excepted from premium charges. A 50% Council Tax discount applies in these circumstances.

We may visit the pitch or mooring to confirm these details.

Seasonal homes

An exception can apply where a property cannot be occupied permanently. One of the following must apply and you may be asked to provide evidence:

• there are planning restrictions in place stating that the property cannot be used as a main residence
• there are planning restrictions in place which state that the property cannot be occupied for at least 28 continuous days in a year

Property being used as a holiday let

Holiday lets are valued for Business Rates if:

• in the last 12 months the property has been available to let commercially for short periods of at least 140 nights; and
• the property will be available to let commercially for short periods of at least 140 nights in the next 12 months; and
• in the last 12 months the property has actually been let commercially as self-catering accommodation for short periods of 70 nights or more

Holiday lets will initially need to be charged Council Tax for at least 140 days. The property can only be assessed for Business Rates once all of the above criteria are met. 

The Valuation Office Agency will decide whether your holiday let should be listed for Business Rates or Council Tax. This decision is not made by Dorset Council. 

If you meet the above criteria, you can ask the Valuation Office Agency to move your holiday let from Council Tax to Business Rates. They may require your letting information and the information you provide for tax purposes to HMRC.

See the Valuation Office Agency website.