Did you know? Council tax

For several reasons, it is in your best interest as a landlord to have your rental property occupied. You might assume that the primary cause of this is due to the loss of rental income. However, this is not your biggest or only challenge when it comes to your unoccupied and potentially unfurnished property. Council tax is a challenge that if left unseen to can lead to great financial loss down the line.

Council tax is a local tax that can be paid for a number of reasons. If your home is vacant or unfurnished, the council may collect it from you; as the landlord. The council may impose these taxes onto your property if it fits this description:

• No residents residing in the property,
• The property is substantially unfurnished. 

In addition to you being charged council tax on your property, starting from the financial year of April 1st 2025, these charges will also apply;

• The premium will be 100% for homes that have been vacant and largely unfurnished for a year but less than five years.
• The premium will be 200% for properties that have been vacant and largely unfurnished for five years but less than ten.
• The premium will be 300% for homes that have been vacant and largely unfurnished for ten years or more.

Although the criteria to receiving this council tax is rigid and clear, there are fortunately some exemptions, such as:

• Properties that are actively being marketed for sale, 
• Properties which are actively being advertised for rental purposes, 
• properties where probate has just been issued,
• properties that need or are undergoing significant repairs and/or structural alterations.