Do you pay council tax when renovating a property?
Renovating a property can be exciting — but it often brings unexpected costs. One of the key questions for owners is whether council tax applies while the home is being worked on. The answer depends on the scale of renovations and whether the property is considered habitable. Below, we explain the rules, exemptions, government guidance, and what to do if your renovation project makes the home unlivable.
Council tax is usually payable during renovation, but there are exceptions:
- Major structural work may qualify for removal from the council tax list.
- Cosmetic or minor renovations do not exempt you from payment.
- The Valuation Office Agency (VOA) must assess the property to confirm uninhabitability.
- Some councils offer local discounts for empty or unoccupied properties.
- UK Government guidance explains rules for second homes and long-term empty homes.
- Long delays may lead to premium charges on empty homes.
When you still need to pay council tax
In most cases, standard home improvements — such as replacing kitchens, retiling bathrooms, or redecorating — don’t affect your council tax liability. Even if the property is temporarily empty, you're still responsible for the council tax unless a specific exemption applies.
You’ll normally be charged full council tax if:
- The property is empty but habitable.
- The renovations are purely cosmetic or non-structural.
- You haven’t applied for any exemption or discount.
Some councils may offer a short-term discount for vacant or unfurnished homes, but this is at their discretion and not guaranteed.
When you may not need to pay council tax
If the property is undergoing major structural work — or is genuinely uninhabitable — it may be temporarily removed from the Council Tax Valuation List. This means you wouldn’t pay council tax while the property remains off the list.
Examples that may qualify include:
- Fire or flood damage.
- Structural rebuilding (e.g. removing walls, replacing foundations).
- The home being derelict or unsafe for occupation.
You must apply to the Valuation Office Agency (VOA) to request removal from the list. Your local council can guide you through this process, but it's the VOA who decides.
Once approved, council tax payments will pause until the home is restored to a habitable state and re-added to the list.
Summary table: Do I pay council tax while renovating?
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Applying for removal from the council tax list
To qualify for exemption due to uninhabitability, you must:
- Contact your local council: Explain the renovation situation and request guidance.
- Apply to the Valuation Office Agency: The VOA assesses whether the property can be removed from the tax list.
- Provide evidence: Photos, reports, or surveys may be required to demonstrate the property is not fit for occupation.
- Allow inspections: The VOA may visit the property to confirm its condition.
There is no fixed minimum time before a property can be removed from the list — it depends entirely on the condition and severity of the work.
Once the renovation is complete and the home becomes habitable again, you must notify the council. Council tax liability resumes from that point and may be backdated if you delay reporting it.
Local discounts for unoccupied homes
Some councils offer discounts for:
- Unfurnished homes: Often a 1–6 month discount period.
- Empty homes: Discounts or exemptions may apply temporarily.
- Long-term empty homes: After 12 months, many councils charge a Council Tax premium, ranging from 100% to 300%.
These rules vary significantly, so always check with your local authority.
What the UK Government says about council tax and empty homes
The UK Government outlines specific rules for second homes, long-term empty properties, and homes undergoing major works:
- Second homes are usually charged full council tax, but some councils apply a premium of up to 2× the standard rate.
- Empty homes can incur a premium after 12 months. If the home has been empty for over 10 years, councils can charge up to 4× the normal council tax.
- Homes undergoing major repairs or structural alterations may be eligible for a council tax exemption or removal from the tax list — but you must apply and provide evidence.
- Probate exemptions: If you’re selling a home after a death, you don’t pay council tax until probate is granted. After that, an additional 6-month exemption may apply if the property remains unoccupied and in the name of the deceased.
- Derelict homes or those with legal occupancy restrictions may also be removed from the council tax list entirely.
To learn more or apply for an exemption, visit: www.gov.uk/council-tax/second-homes-and-empty-properties
Recap: Paying council tax when renovating a property
Unless your renovation project makes the home uninhabitable, you’ll likely continue paying council tax throughout. To avoid unnecessary costs:
- Check local discounts or exemptions early.
- Apply to the VOA if major structural work is involved.
- Notify the council as soon as the property becomes habitable again.
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