Long Term Empty Properties and Second Homes

Long Term Empty Properties

From 1st April 2024 Long Term Empty Properties may be subject to a premium of 100% on the Council Tax charged i.e. the Council Tax is doubled. For Council Tax purposes. a long term property is a property which is no one’s sole or main residence.

Second Homes

A second home is a property which is no one’s sole or main residence that is furnished and lived in for at least 25 days per year.

From 1st April 2024 Second Homes will be subject to a premium of 100% on the Council tax charged i.e Council Tax is doubled. 

What legislation allowed the council to make these changes?

The Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2023 [opens in a new window] gives Council’s the authority to increase the Council Tax charge for second homes and empty properties by up to 100% of the original charge 

Section 2 of the Local Government Finance (Unoccupied Properties etc.) (Scotland) Act 2012 [opens in a new window] gives Council’s the authority to increase the Council Tax charge for unoccupied properties by up to 100% of the original charge.

Regulation 4 of the Council Tax (Variation for Unoccupied Dwellings) (Scotland) Regulations 2013 [opens in a new window] allows for Council’s to vary the level of discount awarded, no longer award discount or increase the Council Tax for unoccupied properties.

Are there circumstances when the premium will not apply?

The 200% charge will not be applied if one of the three following categories applies -
 

1. Properties with new owners & being brought back in to use

This category applies to unoccupied properties that have been continuously unoccupied for more than 1 year and have been bought by a new owner on or after 1st October 2023 who intend to bring the property back in to use.

A 50% discount shall be applied for a maximum period of six months from the date of purchase if the new owner is able to demonstrate that they are progressing and finishing renovations prior to moving in to, letting, or selling the property.

The 200% charge will be applied once 1 year has passed since the transfer of ownership, even if the property is not ready to be occupied, let, or sold.

2. Properties Being Marketed for Sale

This category applies to unoccupied properties that have been continuously unoccupied for less than 2 years and are being actively marketed for sale.

The sale terms, conditions and price must be appropriate for the sale of the particular property, and the offer price must be one which will be accepted by the owner.

A 10% discount will be applied for properties actively marketed for sale that have been unoccupied for 12 months or more but no more than 24 months.

The 200% charge will be applied once the property has been unoccupied for 2 years, even if the property has not been sold and is still being marketed for sale.

3. Properties Being Marketed for Let

This category applies to unoccupied properties that have been continuously unoccupied for less than 2 years and are being actively marketed for let.

The terms, conditions and proposed rent must be appropriate for the let of the particular property, and the rental price must be one which is likely to lead to the creation of a tenancy.

A 10% discount will be applied for properties actively marketed for let that have been unoccupied for 12 months or more but no more than 24 months.

The 200% charge will be applied once the property has been unoccupied for 2 years, even if the property has not been let and is still being marketed for rent.

Can I Appeal?

Yes, if these changes effect the level of Council Tax you are charged you can appeal.

First stage appeals must be made in writing to the Revenues and Benefits Team within two months of the date the decision was made and should include the reasons why they think the decision is wrong and why.

A senior member of the team will provide a written response within two months of receipt of the appeal. 

The Authority may write to the charge payer for information evidence to help review the decision.

If no response has been issued within two months, or the liable payer remains dissatisfied with the Council’s response, then an appeal may be made to the Local Taxation Chamber. This is an independent tribunal set up by the Scottish Courts and Tribunal Service.

Appeals to the Local Taxation Chamber are made by direct lodgement with the Scottish Courts and Tribunal Service. 

The application must be made within two months of the date the Authority notifies the outcome of the internal review; or two months of the date they first appealed if they have received no response from the Authority. 

The Appeal is made by downloading and completing an application form available on the Local Taxation Chamber website and sending it to:

The Scottish Courts and Tribunals Service
Local Taxation Chamber
Bothwell House
First Floor, Hamilton Business Park
Caird Park
Hamilton
ML3 0QA
Tel: 01698 390012
E mail: LTCAdmin@scotcourtstribunals.gov.uk
Website: www.localtaxationchamber.scot

Payment of Council Tax

There is no right to withhold Council Tax payments even if an appeal has been submitted, payments must continue to be made in accordance with the most recent bill received while the appeal is outstanding.

Contact

If you would like more information on the above please email the Revenues and Benefits team   or call 0141 578 8190.