Leicester Council Tax Empty Property Exemptions and Premiums

Empty Property Premiums in Leicester

Leicester City Council charges significant premiums on properties left empty long-term. These premiums were expanded under the Levelling-up and Regeneration Act 2023, and Leicester has adopted them in full.

Long-term empty properties (unoccupied and substantially unfurnished):

Second homes (substantially furnished but with no permanent resident): 100% premium from 1 April 2025, making the total charge 200% of the standard bill.

These are substantial amounts. Leicester's 2026/27 Band D charge is £2,528.75. A 100% premium makes the annual charge £5,057.50, while a 300% premium for a property empty for more than ten years makes it £10,115.00.

Class C and Other Exemptions

Some empty properties qualify for statutory exemptions that override the premium. The main categories relevant to Leicester residents:

Properties undergoing major repairs or structural alterations can qualify for a long-term empty and second-home premium exemption for up to 12 months (Class M). The work must be genuine and ongoing — the council can inspect.

Job-related armed forces accommodation can qualify for a premium exemption when the dwelling is, or would be, someone's sole or main residence if they were not living in that accommodation (Class E).

Annexes forming part of, or treated as part of, the main dwelling can qualify for a premium exemption (Class F).

Properties actively marketed for sale or let can qualify for a premium exemption for up to 12 months (Class G for sale; Class H for let).

Deceased owner's property: a Council Tax exemption can apply for up to six months after a grant of probate or letters of administration, provided the property remains unoccupied and has not been sold or transferred. Leicester also lists a separate premium exemption for certain Class F properties for up to 12 months from the grant of probate (Class I).

The old Class C exemption — which gave all empty, unfurnished properties a blanket exemption for the first six months — was removed nationally in 2013. Councils now have discretion, and Leicester does not offer a general empty property discount for the first period of vacancy.

Empty Properties and Council Tax Reduction

Council Tax Reduction applies to the property where you live — your sole or main residence. An empty property you own is not eligible for CTR because you do not live there. The premium is charged on the empty property, but the value of another property may count toward the capital assessment for a working-age CTR claim.

However, if you are liable for council tax on your main home and struggling to pay because you also own an empty property attracting premiums, the bills are charged on the separate properties. For a working-age CTR claim on your main home, disclose the other property because its value may count toward the capital limit.

What to Do If You Own an Empty Property

If the property is genuinely empty and you are accumulating premiums:

1. Check whether any exemption applies — particularly if the property is undergoing renovation, is part of a probate estate, or is tied to military service
2. If you plan to sell or let, gather evidence of active marketing (estate agent appointment, listings) in case the council queries why the premium should not apply
3. Consider whether the cost of the premium exceeds the holding cost — for properties empty over five years, the escalating premiums are designed to incentivise bringing homes back into use

For questions about your main home's council tax bill and whether you qualify for support, the Leicester Council Tax Reduction guide covers the full eligibility criteria for working-age and pension-age residents.

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