Second Home Council Tax Premium While Selling House: Class G Marketing Exception

When Selling Triggers the Premium

If you own a furnished property in England where nobody lives as their main residence, your council can charge the 100% second home premium under Section 11C — even while you are actively trying to sell it. The premium applies from day one, not after a waiting period.

The good news: Class G of the 2024 Prescribed Classes Regulations (SI 2024/1007) provides a mandatory exception for properties genuinely marketed for sale. Every council must honour it.

What Class G Requires

Three conditions must be satisfied for the full duration of the claim:

Reasonable price. Your asking price must reflect realistic local market conditions. Setting an asking price 40% above fair market value can invalidate the exception — councils treat artificial pricing as a barrier to sale rather than genuine marketing.

Public commercial exposure. The property must be listed through standard commercial channels: a licensed estate agent, plus major property portals (Rightmove, Zoopla, OnTheMarket). A handwritten window sign or a casual social media post is legally insufficient.

No artificial barriers. You must permit viewings, hold a valid Energy Performance Certificate, and demonstrate genuine willingness to complete the transaction.

The 12-Month Hard Cap

Class G runs for a maximum of 12 months from the date active marketing began. It terminates immediately if the sale completes or if marketing ceases.

Here is the critical rule: once a 12-month Class G period expires, the same owner cannot claim Class G again on that property. A fresh Class G period can only start after a "relevant transaction" — meaning the freehold or a long lease (7 years or more) is formally conveyed to a new, unconnected owner. Withdrawing the property from market for a few weeks and relisting does not reset the clock.

What Evidence Councils Expect

Councils vary in how they handle applications, but the evidence baseline is consistent:

• Signed instruction contract with your estate agent
• Live listing URLs on Rightmove or Zoopla showing the asking price
• Valid EPC certificate
• Viewing logs, feedback records, and any price reduction history
• Comparable local sales data supporting the reasonableness of your asking price

Submit everything upfront. Claims are routinely refused because owners provide only a Rightmove screenshot without the signed agency agreement or proof that the price is market-aligned.

When the Exception Expires

If 12 months pass and the property has not sold, the full premium resumes. You cannot immediately switch to Class H (marketing for let) unless you genuinely convert to active rental marketing on reasonable terms — and you would need a separate letting agent agreement, rental advertisements, and a draft tenancy.

If you believe the council has wrongly refused your Class G claim or wrongly determined that marketing ceased, you can challenge the decision under Section 16 of the Local Government Finance Act 1992. The Second Home Council Tax Premium Guide includes evidence templates and a step-by-step walkthrough for both the application and the appeal.

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