Second homes, furnished properties that are not a main residence, and premium
This refers to furnished and unoccupied properties except:
- unoccupied caravans
- dwellings which are furnished but unoccupied because the owner is liable to a Council Tax elsewhere in job-related accommodation
- dwellings which are unoccupied because the liable person is the personal representative of the deceased former occupier and where less than 12 months have elapsed since grant of probate or Letters of Administration were obtained
- armed forces personnel who are required to live in accommodation provided by the Ministry of Defence to perform the duties of their office.
Section 12B of the Local Government Finance Act 1992 provides a discretionary provision to councils to raise a “premium” of no more than 300% on second homes (class B – properties with no occupation restriction). Note that what is defined here is a dwelling where there is no resident, and the dwelling is substantially furnished.
The Act does not provide for differentiation on the basis of where the owner lives or if the dwelling is used for holiday purposes.
Cyngor Gwynedd has raised a premium of 50% on second homes (class B) since 1 April 2018, increasing this to 100% from 1 April 2021, and have since decided to increase this premium to 150% this effective from 1st April 2023.
For the 2026/27 Financial Year, Cyngor Gwynedd decided on 4 December 2025:
- That Cyngor Gwynedd allows NO discount on class A second homes, in accordance with Section 12 of the Local Government Finance Act 1992 (i.e. no change).
- That Cyngor Gwynedd allows NO discount and RAISES A PREMIUM OF 150% on class B second homes, under Section 12B of the Local Government Finance Act 1992 (i.e. no change).
Annual declaration for 2026/27, with the minutes of the related meeting
The Act also has a provision that specifies classes of exemptions where the raising of a Council Tax premium is prohibited, and these are listed below.
dwellings
| Classes of Dwellings | Definition |
|---|
| 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 accommodation |
| Class 5 |
Occupied caravan pitches and boat moorings |
| Class 6 |
Seasonal homes where year-round occupation is prohibited |
| Class 7 |
Job-related dwellings |
*The time limitation of one year for Class 1 and Class 2 is effective from the date the property is for sale or for let now, and that can therefore be before any premium effective date.
View further information on the premium, including the number of properties liable for each premium, amount of income raised and how the additional income is used.
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