Council Tax for Long-Term Empty Dwellings
Perth and Kinross Council · 24 June 2026
Back to Finance and Resources Committee — 24 June 2026 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee or Board: Finance and Resources Committee Date of Meeting: 24 June 2026 Report Title: Council Tax for Long-Term Empty Dwellings Report Number: 26/184 Report Author: Kevin Fraser, Team Leader (Local Taxes) Organisational Lead: Alan Taylor, Strategic Lead, Customer & Digital Services ___________________________________________________________________ 1. Purpose 1.1 The purpose of this Report is to confirm the arrangements for increasing the Council Tax charge for long-term empty dwellings, to ask for agreement for the continuation of discretionary provisions in this respect, and to note the existence of statutory guidance issued by the Scottish Government. 1.2 Sections 1. Purpose 2. Recommendations 3. Background/Context 4. Main Issues 5 Proposals 6 Conclusion 7. Impact and Value Assessment 8. Appendices 2. Recommendations It is recommended that the Committee: 2.1 Note the increase in the surcharges to be applied to long-term empty dwellings, as detailed in Section 5, and approved by Council on 4 March 2026 2.2 Agree to maintain existing discretionary provisions as detailed in Section 5.
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2.3 Note the requirement to adhere to the statutory guidance provided by the Scottish Government in Appendix 1. 3. Background/Context 3.1 The Housing (Scotland) Act 2025 introduced additional powers for local authorities to charge higher levels of Council Tax on second homes and long- term empty dwellings by removing the existing cap. 3.2 In 2025/26 the Council Tax charges determined by Perth & Kinross Council for both long term empties and second homes were set at the maximum cap of 200%. The legislative change from 1 April 2026 removes the cap on second homes and long-term empty dwellings. 3.3 In this context a “second home” is a dwelling which is no one’s sole or main residence, but which is furnished and in respect of which, during any period of 12 months, the person who is liable to pay the council tax that is chargeable can produce evidence to establish that it is lived in other than as a sole or main residence for at least 25 days during that period, and, 3.4 A “long-term empty home” is a dwelling which has been continuously unoccupied for a period exceeding twelve months and is not of a class of dwellings specified in schedule 2 to The Council Tax (Variation for Unoccupied Dwellings) (Scotland) Regulations 2013. These are: o Properties that are actively marketed for sale or let, which are protected from the surcharge for two years since last occupied. o Properties undergoing repairs or renovation where a new purchaser cannot be subject to the increase for up to six months since the date of purchase 3.5 In setting its budget for 2026/27 the Council, at its meeting on 4 March 2026, decided to use these powers to increase the charge applied to long term empty dwellings from 200% to 300% with effect from 01 July 2026. 3.6 This will effect approximately 920 dwellings in the Perth & Kinross Council area. 3.7 Based on these numbers and assuming a static collection rate this will generate approximately £600,000 in this financial year, rising to £800,000 for each subsequent full financial year. 3.8 No changes were proposed for second homes which will retain the 200% charge. For noting only, there are a similar number of such dwellings. 3.9 The increased flexibility does not affect eligibility for statutory exemptions under the Council Tax (Exempt Dwellings) (Scotland) Order 1997. Examples include dwellings unoccupied for care purposes and those where occupation
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is prohibited by law. Full details of all exemptions are available at www.pkc.gov.uk/counciltaxdiscountsandexemptions. 4. Main Issues 4.1 The Council recognises the importance of notifying those affected therefore letters have been issued by the Local Taxes team to raise awareness of the changes. 4.2 Such letters have been issued to those that will be immediately affected, i.e. existing long term empty dwellings and those where the surcharge is due to be applied within a 6-month period should there be no change in circumstances. 4.3 The Council also recognises the need to take individual circumstances into account and agreement is sought to allow discretion to be considered on a case-by-case basis as outlined in Section 5 5 Proposals 5.1 The Committee is asked to note the decision of the Council to increase the charge for long term empty dwellings to 300% with effect from 01 July 2026. 5.2 The Committee is asked to agree to continue the discretionary provisions that were set at a meeting of the former Strategic Policy and Resources Committee on 19 April 2017. 5.3 This allowed the Council to provide flexibility in the following circumstances: o Where an existing owner commences or resumes activity to bring a long-term empty dwelling back into use. o Where the nature of the dwelling is such that it could not reasonably be brought up to a habitable standard within the timescales allowed under existing legislation governing the award of discounts or exemptions . o Where conditions, out with the control of the owner, create a limited market and thereby a negative impact on the time that a dwelling may take to sell. o Any other exceptional circumstances out with the direct control of the owner. 5.4 In all cases, engagement with the Council’s Vacant Property Team is a condition of any flexibility or discretion being considered. 5.5 Where discretion is to be applied, this will take the form of a 10% discount for a maximum of 18 months from the date a surcharge would ordinarily be applicable
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5.6 This will mean that the payer is protected from any surcharge and will pay 90% of the standard Council Tax charge. 5.7 The Committee is also asked to note that, in all cases, adherence to the statutory guidance provided by the Scottish Government, as provided in Appendix 1, will be observed. 6 Conclusion 6.1 The Council budget for 2026/27 included a decision to increase the surcharge on long-term empty dwellings from 01 July 2026. 6.2 In doing this it is recommended that existing discretion is maintained on a case-by-case basis with a requirement for the owner to engage with the Council’s Vacant Property Development Team. 6.3 The changes to the regulations were accompanied by statutory guidance provided by the Scottish Government which will be adhered to. 7. Impact and Value Assessment https://www.pkc.gov.uk/media/55177/Council-Tax-for-Long-Term-Empty- Dwellings/pdf/Council_Tax_for_Long- Term_Empty_Dwellings.pdf?m=1777993627303 8. Appendices 8.1 Appendix 1 - Scottish Government statutory guidance