Council Tax Empty Property Discount and Reduction Options

Most Councils No Longer Offer Empty Property Discounts

Until relatively recently, many English billing authorities offered discretionary discounts on empty property council tax — commonly 25% or 50% for the first few months of vacancy. The legislative push toward bringing empty homes back into use has largely eliminated these.

Most councils now charge the full 100% standard council tax from the first day a property is empty, with the premium surcharge layered on after 12 months. A small number of authorities still maintain short-term discounts, but this is the exception rather than the rule.

Check your specific council's empty property policy. Your annual demand notice should state whether any initial discount applies, and the council's website usually publishes the current schedule.

Section 13A Hardship Relief: The Discretionary Safety Valve

Section 13A(1)(c) of the Local Government Finance Act 1992 gives every billing authority in England broad discretionary power to reduce a person's council tax liability — including premiums — by any amount, in individual cases or for classes of property. This is the last resort when no statutory exemption or exception applies and the bill is genuinely unaffordable.

To qualify, you generally need to demonstrate:

• Exceptional personal or financial hardship that makes payment impossible
• Unforeseen circumstances preventing you from selling, letting, or occupying the property (complex legal disputes, land registry errors, builder insolvency)
• That you have exhausted all reasonable alternatives

Each council maintains its own Section 13A policy. Some are restrictive; others are more flexible. The application goes to your billing authority's revenues department, usually by form or letter.

If the council refuses Section 13A relief, you can appeal that decision to the Valuation Tribunal for England (VTE) at no cost.

Empty Property Refunds and Backdating

If you discover that your property qualified for an exemption or exception during a period when you were charged the full premium, you can apply for a backdated adjustment. Statutory exceptions and exemptions apply as a matter of law from the date the qualifying conditions were met, not from the date you submitted the application.

The billing authority must backdate the correction and either credit the overpayment against your account or refund it directly. Keep evidence of the qualifying dates — estate agency contracts, probate grants, building control notices — because the council may resist backdating if you cannot verify the timeline.

Council Tax Reduction Scheme (Low Income)

The Council Tax Reduction (CTR) scheme, which replaced council tax benefit in 2013, is designed for working-age and pensioner households on low incomes. Each council runs its own scheme for working-age applicants, while pensioners follow a national framework.

CTR can reduce the standard bill (and by extension the base on which the premium is calculated), but it is primarily aimed at occupied properties where the liable person lives. Landlords and owners of empty investment properties are unlikely to qualify.

Practical Approach to Reducing Your Empty Property Bill

The most effective route is usually a statutory exception (marketed for sale, marketed for let, major repairs, probate) rather than a discretionary discount. Exceptions are mandatory — the council must apply them if you meet the conditions. Discretionary relief depends on local policy and individual assessment.

Our Empty Home Council Tax Premium guide maps out every available route to reduce or remove the premium, including evidence preparation checklists for each exception class and a walkthrough of the Section 13A application process.

See more England guides →