Council Tax discount for empty properties and annexes

Council Tax discount for empty homes undergoing major repairs

If you have a property that is unoccupied and needing structural changes you may be eligible to a discount on your Council Tax bill.

We can apply a 50% discount for a maximum of 12 months and you can apply up to 6 months after the work is completed. However, we may not consider backdated claims unless you are able to provide full evidence of works and the reason for not applying whilst the alterations were being made.

To qualify the property needs to:

be unoccupied
be unfurnished
be undergoing, or in need of, structural alteration to make it habitable, or
have recently undergone major repair work to make it habitable. This needs to have been less than 6 months ago and the property must have remained vacant since completion

The discount may be applied in cases where the following types of work are being carried out:

work required rectifying or further preventing structural damage to property i.e. underpinning
total replacement of floors including new joists/damp proof membrane
total replacement of ceilings or roof including new joists / timbers
total re-plastering (back to brick) of the entire walls of the majority of the property
work required to fix extensive damage due to flood or fire
Refurbishment and/or redecoration including re-wiring and plumbing

How to apply

You will need to complete our short online form to apply for this discount. It is important that you apply at the earliest opportunity as we will inspect your property as a part of the application process.

Before you start

You will need the following information to complete this application:

the Council Tax reference number for the property where the work is taking place
the date the property became unfurnished
the date the works are due to start
expected completion date

Apply now

Unfurnished and unoccupied property

Property that is unoccupied and substantially unfurnished can qualify for up to one month 100% Council Tax discount. This applies from the first date the property becomes vacant – it is based on the property and not the liable person and does not restart if there is a change of ownership or tenancy.

Exceptions to long term empty premium charge

From 1 April 2025 new legislation has been introduced to allow certain exceptions to the additional premium charge.

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 requiring or undergoing major or structural repairs

Properties undergoing major repair or structural alteration may be excepted from the long-term empty premium charge for up to 12 months.

Unlike other councils, Dorset Council still allow a 50% major works discount in these cases and so this exception runs concurrent with the discount.

In effect a qualifying property will receive a 12 month 50% charge and at the end of the 12 month discounted period the premium will be applied - no additional period of exception applies.

Where the repairs are completed in less than 12 months the exception applies for up to 6 months or until the end of the 12 months, whichever is sooner.

The exception cannot apply again unless the property has been sold.

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 can only apply after 1 April 2025 and so if the property has been marketed before this time only the balance up to one year will apply.

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

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 within 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

It is important that you provide the date of probate as soon as it is obtained and also the date the furniture has been removed from the property.

Second homes

If your dwelling is a second home, meaning it is furnished and no one's sole or main residence, no discount will apply. From 1 April 2025 a 100% additional premium will be applied automatically.

Further information regarding second homes and exceptions to the premium is shown in Council Tax on second homes.

Annexes

If a single property includes more than one dwelling, for example an annexe, a 50% discount may apply if:

the dwelling is being used by a resident of the other dwelling(s) as part of the sole or main residence; or
the dwelling is the sole or main residence of a close relative of the person who is liable to pay Council Tax for the other dwelling(s)

The 50% discount can be applied in addition to other discounts.

When you apply, tell us:

your property address
the date you want to claim from