Empty Home Premium and Council Tax When a Parent Is in a Care Home

What the Empty Home Premium Is

Since April 2024, English billing authorities have had the power to charge up to a 100% council tax premium on properties that have been unoccupied and substantially unfurnished for one year or more. If a council applies the premium, the maximum rises to 200% for homes empty for five to ten years and 300% for homes empty for more than ten years. At those maximum rates, on an average Band D property charged at £2,392 for 2026/27, total bills would be £4,784, £7,176, or £9,568 per year.

These premiums are designed to push owners into using vacant housing. But families whose parent or relative has moved into a care home can end up receiving a premium notice on a property that is empty through no fault of their own.

Class E Blocks the Premium Completely

If the empty property qualifies for a Class E exemption — because the owner or tenant has moved permanently into a care home, hospital, or qualifying hostel — the property is fully exempt from council tax. An exempt dwelling sits outside the charging system entirely. No council tax is payable, and no premium can be applied.

This is not a partial protection. The empty-period clock that councils use to calculate premiums does not run while Class E is active. A property that has been Class E exempt for four years is not treated as having been empty for four years. The premium cannot be charged on it.

When the Premium Can Appear

The risk comes in two situations:

The family never claimed Class E. If nobody told the council about the care home move, the property sits in the council's system as a standard empty dwelling. If it remains unoccupied and substantially unfurnished for twelve months, a council that has adopted the premium can charge it. The first sign is often a demand notice that is double or triple what the family expected.

The fix is to apply for Class E immediately, with backdating to the care home admission date. There is no statutory time limit on how far back Class E can be applied. The council must remove the premium for the entire period the exemption should have been in place and refund any overpayment.

Class E has ended. The most common reason is that the person in care has died. Class E terminates on the date of death, and Class F (the probate exemption) takes over — protecting the property until six months after the grant of probate or letters of administration. After Class F expires, if the property is still empty, the premium clock starts. At that point, the property may qualify for a Class G exception if it is actively marketed for sale at a realistic price, which gives up to twelve months of premium protection.

The Second Home Premium Interaction

From April 2025, councils can also charge a 100% premium on "second homes" — properties that are substantially furnished but have no resident. A care home family that keeps the house furnished might worry about this.

But again, while Class E is in force, the second home premium cannot apply. The property is exempt, not merely empty. The second home premium only becomes a concern if the exemption ends while the property remains furnished and unoccupied.

What to Do If You Have Already Been Charged

If a premium notice has arrived on a property that should be Class E exempt:

1. Do not ignore the bill — councils can escalate unpaid premiums to liability orders and enforcement
2. Contact the council tax department immediately and explain that the property qualifies for Class E
3. Provide the care home admission letter or agreement with the permanent move date
4. Request backdating to the admission date and removal of all premium charges

If the council refuses, the statutory appeal route is a formal written grievance under Section 16 of the Local Government Finance Act 1992, followed by a free appeal to the Valuation Tribunal for England if the council does not resolve it within two months.

Getting the Full Picture

The Council Tax Care Home & Hospital Claim Guide covers the complete premium interaction — how Class E blocks premiums, what happens when it ends, and how to challenge incorrect premium charges with a step-by-step dispute workflow.

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