Council Tax Premiums

In accordance with section 12a & 12b of the Local Government Finance Act 1992, as inserted by Section 139 Housing (Wales) Act 2014, the Council has determined to charge Council Tax premiums as detailed below:

Since the 1^st April 2017, legislative changes made within the Housing (Wales) Act 2014 have provided local authorities in Wales discretionary powers to charge a premium of up to 100% on top of the standard rate of council tax on Long-term Empty dwellings and dwellings Occupied Periodically (more commonly referred to as second homes within their area, and from the 1^st April 2023, The Council Tax (Long-term Empty Dwellings and Dwellings Occupied Periodically) (Wales) Regulations 2022 will allow a local authority to set premium levels up to 300% for the 2023/2024 financial year and subsequent years.

The 2014 Act amends the 1992 Act by inserting new sections 12(A) and 12(B) to enable the billing authority in Wales to disapply any discount granted to Long-term Empty dwellings and dwellings Occupied Periodically and apply a higher amount of council tax (a premium).

The Act also provides regulations which make exceptions to the premiums, and these are set out in the Council Tax (Exceptions to Higher Amounts) (Wales) Regulations 2015.

Premium - Section 12(A) Long-term empty properties

If the property is empty, and contains no furniture, it will be exempt for the first 6 months from the date the house became unfurnished. Once this period has finished no discount will be allowed and a full council tax charge will be payable.

If it remains empty after a further 6 months (that is 12 months from the date it was emptied), Section 12A of the Local Government Finance Act 1992 provides a discretionary provision to councils to raise a “premium” of up to 300% on long term empty properties (Premium Guidance).

At the Full Council meeting held on the 6^th November 2024 it was determined to charge for the financial year 2025/2026 a Council Tax premium of:

100% if the property has been empty for more than 1 year but less than 5 years.
150% if the property has been empty for more than 5 years but less than 10 years
200% if the property has been empty for more than 10 years.

Premium - Section 12(B) Periodically occupied properties

A second home is defined as a dwelling that is substantially furnished and is not the owner’s or occupier’s sole or main residence. It is referred to in legislation as a dwelling occupied occasionally, and from the 1^st April 2024 the local authority introduced a 100% Council Tax Premium charge on a property types.

At the Full Council meeting held on the 6 November 2024 it was determined to continue to charge a Council Tax premium of 100% for the financial year 2025/2026.

Premium Exceptions

There are exceptions from paying the premiums on long term empty and second homes and these are listed below:

Class 1 - Dwellings being marketed for sale - time-limited for one year
Class 2 - Dwellings being marketed for let - time-limited for one year
Class 3 - Annexes forming part of, or being treated as part of, the main dwelling
Class 4 - Dwellings which would be someone's sole or main residence if they were not residing in armed forces
Class 5 - Occupied caravan pitches and boat moorings
Class 6 - Planning condition prohibits year-round or permanent occupation, or specifies use as holiday accommodation only.
Class 7 - Job-related dwellings
Class 8 – Local Exception for New owners bringing the property back into use & Composite Properties
Class 9 - Local Exception (From 01/04/2025) - (Ongoing Renovation) - Up to 6 months)

If you require further information on Council Tax Premiums please contact the Revenues Section by email at revenues@merthyr.gov.uk or phone 01685 725000.

Empty Homes – what help is available

If you have an empty home and wish to make use of it but want help, please contact Melissa Clee in the Environmental Health Department on 01685 725000 for further advice

Further Information

How is the money collected from Council Tax Premiums spent?