Second Home Council Tax Premiums in Wales: What You Need to Know

If you own a second home in Wales, your council tax bill may be higher than you expect. Since April 2023, Welsh local authorities have had the power to charge a premium of up to 300% on second homes. This measure is designed to help tackle housing affordability and support local communities.

How the Premium Works

Standard Rate Plus Premium: You pay the normal council tax rate plus the local premium.

Maximum Charge: Councils can charge up to 300% of the standard rate.

Local Decision: Each council sets its own rate, and many have increased their premiums over time.

Why the Premium Exists

Improve Affordability: To help local residents access housing.

Support Communities: Ensures second home owners contribute fairly to local services.

Tackle Empty Homes: Encourages long-term empty properties to be brought back into use.

How to Check Your Rate

Visit your local council’s website to find out if a premium applies in your area and what the current rate is.

Important to Note

Exceptions Apply: Some councils offer exemptions, for example, if a property is actively being marketed for sale or rent.

Land Transaction Tax (LTT): Buying a second home in Wales also means paying a 5% LTT surcharge.

Takeaway

If you own or are considering buying a second home in Wales, it’s essential to check your local council’s premium rate and factor these extra costs into your budget.