Second Home Premium

On 26th February 2024, Rother District Council approved changes to the Council Tax charged on certain dwellings with the introduction of a premium on second homes This is in line with powers given to Councils under section 11C and 11D of the Local Government Finance Act 1992 (as amended by Section 79 (1) and 80 of the Levelling Up and Regeneration Act 2023.).

The change means that a 100% Council Tax Premium will be applied with effect from 1st April 2025 and is payable in addition to the standard Council Tax liability in respect of dwellings that meet the following conditions:

• there is no resident at the dwelling i.e. not a person’s sole or main home, and
• the dwelling is substantially furnished.

A person is considered to be living in a property for Council Tax purposes if it is their sole or main residence. If a person only has one home, then this is a straightforward decision as this would be their sole residence. However, when a person has more than one home, we must decide which property is considered to be their main residence for Council Tax purposes. Sole or main residence is not defined within the council tax legislation, but some of the factors we take into account when deciding are:

• Which property you consider to be your main residence.
• Where your spouse/partner or family lives, if you have one.
• Where your children are educated (if you have children of school age).
• Where your employment is based.
• Whether you ultimately intend to return to one property.
• Where the majority of your personal belongings are kept. 
• Which address you have declared to your home insurance provider as being your main residence.
• Security of tenure at each property (owner, tenant, license to occupy).
• Where you are registered to vote.
• Where you are registered for your GP.
• The address you have declared to DVLA & your motor insurance provider as being your main residence.

Charge Exceptions

There are some exceptions to the second homes premium and the Government has prescribed classes of dwellings which are to be excluded from the premium with the introduction of the Council Tax (Prescribed Classes of Dwellings and Consequential Amendments) (England) Regulations 2024. These exceptions include:

• Propeties undergoing probate – The exception will run for 12 months after probate or letters of administration have been granted or until the dwelling has changed owner by being sold, (whichever is sooner).
• Properties being actively marketed for sale or let – The exception will apply for up 12 months from the point of which the dwelling has first been marketed for sale or let. The exception will end either when the 12-month period has ended, when the dwelling has been sold, or when the dwelling is no longer being actively marketed. (whichever is sooner).
• Annexes forming part of, or being treated as part of, the main dwelling – The second homes premium does not apply to annexes which form part of a single property which includes at least one other dwelling. The exception will not apply to annexes where they are not being used as part of the main residence.
• Job related dwellings – The second homes premium does not apply to job-related dwellings. This exception will not apply to cases where someone chooses to have an additional property to be closer to work while having a family home elsewhere or where an individual is posted to a new location but maintain their previous address.
• Seasonal homes where year-round or permanent occupation is prohibited or has been specified use – Where properties have planning restrictions or other conditions on occupation or use in place which prevent year-round occupation are an exception to the second homes premium.