Definition of second / empty homes and long-term empty homes

Second / Empty Homes:

• Dwellings which are not the sole or main residence of an individual, which are furnished and the occupation of which is restricted by a planning condition preventing occupancy for a continuous period of at least 28 days.
• Dwellings which are not the sole or main residence of an individual, which are furnished and the occupation of which is not restricted by a planning condition preventing occupancy for a continuous period of at least 28 days.

Long Term Empty Homes:

• Dwellings which are unoccupied and substantially unfurnished.

Discount Levels

Until 31 March 2004, second and empty homeowners in the Royal Borough of Kensington and Chelsea were eligible for a discount of 50 per cent on their Council Tax. From 1 April 2004, this discount has been reduced to 10 per cent.

Legal basis for reduction in second / empty and long term empty discounts from 1 April 2004

Councils were granted new powers, under Part 6 of the Local Government Act 2003, to reduce the discounts for second and empty homes from 50 per cent to a minimum of 10 per cent and to reduce or remove long-term empty home discounts.

The new RBKC discounts

The Council has decided that the discounts for second and empty homes should be reduced from 50 per cent to 10 per cent of the full charge due from 1 April 2004. It has also decided to reduce the long- term empty home discount from 50 per cent to 10 per cent. These decisions were agreed at a meeting of the full Council on 21 January 2004.

There are two situations where the discount can be claimed at 50 per cent level rather than the 10 per cent level, they are where the properties concerned are:

1. Dwellings, which consist of a pitch, occupied by a caravan, or a mooring occupied by a boat.
2. Dwellings that are unoccupied as the taxpayer or their spouse are required to occupy a job-related dwelling. This applies where the taxpayer or their spouse has to occupy a dwelling provided by their employer by reason of the terms of their employment. (A full definition of Job-Related Dwellings is given below)

Job Related Dwellings

Council Tax regulations provide that a 50 per cent discount is payable for dwellings which are no one’s sole or main residence and are furnished where the taxpayer is required to live at another dwelling by reason of their or their spouse’s employment.

This can only be granted where both dwellings are in England, Scotland or Wales and the applicant is liable for payment of Council Tax on both. The full definition of job-related dwellings is given below.

Job-related dwellings

1. (1) Subject to sub-paragraph (2), a dwelling is job-related for a person if it is provided for him by reason of his employment or for his spouse by reason of the spouse's employment, in any of the following cases

1. where it is necessary for the proper performance of the duties of the employment that the employee should reside in that dwelling;
2. where the dwelling is provided for the better performance of the duties of the employment, and it is one of the kinds of employment in the case of which it is customary for employers to provide dwellings to employees;
3. where, there being a special threat to the employee's security, special security arrangements are in force and the employee resides in the dwelling as part of those arrangements.
4. (2) If the dwelling is provided by a company and the employee is a director of that or an associated company, paragraph (a) or (b) of sub-paragraph (1) shall not apply unless either -
5. the employment is as a full-time working director, 
6. the company is non-profit making, that is to say, it does not carry on a trade nor do its functions consist wholly or mainly in the holding of investments or other property, or
7. the company is established for charitable purposes only.

1. (1) Subject to sub-paragraph (2), a dwelling is job-related for a person if he or his spouse is required, under a contract to which this sub-paragraph applies, to live in that dwelling.

1. (2) Sub-paragraph (1) does not apply if the dwelling concerned is in whole or in part provided by any other person or persons together with whom the person or spouse carries on a trade or business in partnership.
2. (3) A contract to which sub-paragraph (1) applies is a contract entered into at arm's length and requiring the person concerned or his spouse (as the case may be) to carry on a particular trade, profession or vocation in a property provided by another person and to live in a dwelling provided by that other person.

1. In relation to job-related dwellings:
   a company is an associated company of another person if one of them has control of the other or both are under the control of the same person;
   "director", "full-time working director" and "control", in relation to a body corporate have the same meanings as they have in sections 67 and 69 of the Income Tax (Earnings and Pensions) Act 2003 in relation to the benefits code;
   "provided" means provided under a tenancy or otherwise; and references to the spouse of a person shall be taken to include references to a person of the opposite sex who is living with the other as that person's husband or wife.

Local Taxes

• Council Tax
• Council Tax Benefit
• Business Rates
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