Council Tax Premium When You Move Into a Care Home — What Happens to Your Second Home

When someone moves permanently into a care home or hospital, the house they leave behind sits furnished but unoccupied. Under the rules that took effect in April 2025, councils across England can charge a 100% premium on exactly that kind of property — a furnished dwelling where no one lives as their sole or main residence.

Families navigating a relative's move into care don't need a doubled council tax bill on top of care home fees that already average £800–1,100 per week. The good news: there's a full exemption that may protect the property. The less good news: it doesn't last forever, and the transition from exemption to premium catches many families off guard.

The Class E Exemption (Full Bill Waiver)

Class E of the Council Tax (Exempt Dwellings) Order 1992 — not to be confused with Class E of the 2024 Prescribed Classes Regulations (which covers armed forces) — exempts a property from all council tax when the owner has left to live in a care home, hospital, or hostel to receive personal care.

Under Class E of the 1992 Order, the property's council tax bill drops to zero. No standard charge, no premium. This applies as long as:

• The person left the property to receive care (not simply to be closer to family)
• They're living in a residential care home, nursing home, hospital, or similar establishment
• The property remains their last place of residence before entering care

This exemption has no fixed time limit — it runs for as long as the qualifying conditions are met. While the person remains in care and the property remains unoccupied, the bill stays at zero.

When the Exemption Ends

The exemption falls away when the qualifying conditions change:

• The person dies. The property then moves to the probate sequence — Class F of the 1992 Order (full exemption until 6 months after probate is granted), then Class I of SI 2024/1007 (protection from the second home premium for 12 months after probate).
• Someone else moves in. If a family member or tenant establishes the property as their sole or main residence, there's no second home premium because it's now someone's main home.
• The property is sold or the person returns home. Both end the exemption.

The trap is the gap after death. If the family doesn't sell or let the property quickly, the protection sequence runs out: Class F exemption → Class I premium protection → full Section 11C second home premium where the billing authority has adopted it. A property that sat at zero council tax for years during the owner's time in care can suddenly face a 200% bill.

Class J: The Carer's Own Home

A separate but related exemption applies when someone leaves their own home to provide care to another person. Class J of the 1992 Exempt Dwellings Order exempts the carer's vacated property from council tax entirely.

This covers:

• A child who moves in with an elderly parent to care for them, leaving their own home empty
• A spouse who moves to provide personal care to a partner in hospital or hospice

The carer must have moved to provide personal care — not just to visit. The exemption runs while they're away providing care and the property remains their last place of residence.

What About the Furnished Question?

For the Class E and Class J exemptions to work, the property is typically furnished — nobody strips a house when they move into care. That's fine. These are full exemptions under the 1992 Order that override everything, including the Section 11C second home premium.

The furnished status only becomes a problem after the exemption ends. Once the person dies and the probate protection sequence expires, the family faces a choice: leave the house furnished (and face a second home premium if the billing authority applies one) or empty it (and face an empty homes premium after 12 months if the authority has adopted one). Neither is ideal, which is why selling or letting the property within the protection window matters.

If the family is marketing the property for sale, Class G under SI 2024/1007 gives 12 months of premium protection from the date active marketing begins. If they're looking for tenants, Class H gives the same 12-month window.

How to Claim

Contact the billing authority for the area where the property is located. You'll need:

• Evidence that the person has moved into residential care (a care home placement letter, invoice from the care provider, or social services assessment)
• Proof that the property was their last place of residence before entering care

If you're claiming Class J (carer's vacated home), provide evidence of the care arrangement and your own previous occupation of the property.

The exemption can be backdated — there's no statutory time limit. If the move into care happened months ago and no one claimed the exemption, request it from the date of the move.

For families managing the full council tax timeline around care and death — from the initial Class E exemption through probate to eventual sale — our Second Home Council Tax Premium guide maps the sequence of protections and the evidence needed at each stage.

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