Wales Council Tax Premium Regulations 2015 and 2023 Amendments Explained

The 2015 Regulations: Where the Exception Classes Come From

The Council Tax (Exceptions to Higher Amounts) (Wales) Regulations 2015 (W.S.I. 2015/2068) established the seven statutory exception classes that protect property owners from council tax premiums. Without these regulations, every second home and long-term empty property in Wales would face the premium with no legal defence other than full dwelling exemptions.

The 2015 Regulations were enacted under powers created by the Housing (Wales) Act 2014, which inserted Sections 12A and 12B into the Local Government Finance Act 1992 and gave Welsh councils the discretionary power to charge premiums of up to 100% on long-term empty homes and second homes.

The seven exception classes defined in 2015:

• Class 1: dwelling marketed for sale at a reasonable price (12-month limit)
• Class 2: dwelling marketed for let at a reasonable rent (12-month limit)
• Class 3: annexe forming part of a main dwelling
• Class 4: owner in armed forces accommodation
• Class 5: caravan pitches and boat moorings (second homes only)
• Class 6: dwelling subject to planning restrictions on year-round occupation (second homes only)
• Class 7: job-related dwelling (second homes only)

These classes apply across all 22 Welsh billing authorities. A council cannot add to or modify the national classes, though some councils operate additional local discretionary exceptions alongside them.

The 2022 Regulations: Premium Cap Raised to 300%

The Council Tax (Long-term Empty Dwellings and Dwellings Occupied Periodically) (Wales) Regulations 2022 (W.S.I. 2022/370) tripled the maximum premium ceiling from 100% to 300%, effective from 1 April 2023. This means a council can now charge up to 400% of the standard Band D rate in total (100% base liability plus 300% premium).

Not every council charges the maximum, and some operate tiered structures where the rate escalates with the duration of vacancy. Pembrokeshire reaches 300% on properties empty for extended periods; Gwynedd charges 150% on both second homes and empty homes.

S.I. 2023/253: The Class 6 Amendment

The Council Tax (Exceptions to Higher Amounts) (Wales) (Amendment) Regulations 2023 (W.S.I. 2023/253) refined the Class 6 planning restriction exception. The amendment clarified which planning conditions qualify for the exception, responding to confusion about whether holiday-let planning conditions automatically protect properties from the second-home premium.

Under the amended Class 6, the planning condition must specifically prevent continuous occupation for at least 28 consecutive days in any 12-month period, or restrict use solely to holiday accommodation. A condition that merely prohibits commercial sub-letting but allows year-round private occupation does not qualify — the second-home premium still applies.

This matters for owners of properties with older planning permissions. If your property's planning condition uses pre-2023 wording, check the exact text against the amended Class 6 definition. The words "holiday purposes only" in a planning condition are a strong indicator of eligibility, but a condition that says "not to be used as a sole or main residence" without restricting continuous occupation may not qualify.

The 2026 Amendments: Class 8 and Modernisation

More recent legislation has continued to develop the framework:

• W.S.I. 2026/89 introduces a new Class 8 transitional exception, effective 1 April 2027, covering properties that fall off the non-domestic rating list (business rates) and revert to council tax. This gives former holiday lets a 12-month buffer before the second-home premium applies
• W.S.I. 2026/8 (Council Tax (Discounts, Disregards and Exemptions) (Wales) Regulations 2026) consolidated and modernised the dwelling exemption framework, including updated rules for Class C (empty unfurnished) and the anti-avoidance six-week occupation rule
• The Local Government Finance (Wales) Act 2024 clarified that statutory discounts are calculated after the premium is applied, ensuring a uniform baseline across all authorities

What This Means for Property Owners

The legislative framework is dense, but the practical takeaway is straightforward: the 2015 Regulations created your defence against premiums, the 2022 Regulations increased what you could be charged, and the 2023 and 2026 amendments refined the rules around specific property situations.

When applying for an exception, the council's decision must comply with the national regulations. If a council refuses your Class 1 application, first submit a formal written grievance under Section 16 of the Local Government Finance Act 1992. If the council rejects it or does not issue a written decision within two calendar months, you can appeal to the Valuation Tribunal for Wales on the basis that the council misapplied the 2015 Regulations. The appeal is free of charge.

The Wales second home and empty home premiums guide translates all of these regulations into a step-by-step process with evidence checklists for each exception class.

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