Elected Member Briefing Note 2026 - No 62
About this Briefing Note
Report by: Kevin Fraser, Team Leader, Local Taxes
Date: 27 May 2026
Subject: Council Tax Charges for Long Term Empty Buildings
Details
Purpose
The purpose of this briefing is to outline the arrangements to apply increased Council Tax charges to be levied on long term empty dwellings from 1 July 2026.
Briefing Information
Part 6 (75) of the Housing (Scotland) Act 2025 amended Part 5 (33) of the Local Government in Scotland Act 2003
This allowed changes to the levying of Council Tax to be brought forward under The Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2026
These regulations allow changes to be applied from 1st April 2026.
These regulations remove the upper limit of a 100% increase (200% charge) on long-term empty dwellings and second homes.
They also oblige Councils to adhere to guidance provided by the Scottish Government on this matter when exercising such powers.
Perth and Kinross Council's Agreed Position
When setting the 2026/27 budget the Council decided to use these powers to increase the surcharge to be applied to long-term empty dwellings from 100% to 200% giving a 300% charge.
It was agreed that such charges would be implemented with effect from 1st July 2026.
No changes were proposed to the charging of Council Tax on second homes.
Scope and Next Steps
There are currently approximately 920 long-term empty dwellings within the Perth & Council area that would be within the scope of these changes.
The Local Taxes team intend to send letters to the owners of theses dwellings along with approximately 380 further letters to those that may face an increase within the next six months should their dwelling remain unoccupied.
The letters confirm the increase and outline the support available through the Council's Vacant Property Development team.
It is planned that the letters will be issued before the end of May to give notice to those affected rather than as an enclosure with their amended bill.
We will also liaise with colleagues to issue wider external communications about the increase.
An assumption has been made that the existing discretion agreed when the 100% surcharges were introduced in 2017 will be retained.
A report will be brought before the Finance and Resources Committee of 24th June 2026 to ratify this.
This report will also recognise the need to adhere to statutory guidance received from the Scottish Government.
Amended bills will be issued detailing the increased charges, and amended amounts payable, as soon as possible after 1st July 2026
Other matters to note
This will bring increased administrative pressure on the Local Taxes team at a time where significant changes to Non-Domestic Rating are still being encountered.
We expect a significant amount of challenges to this and an increase in appeals/complaints.
We will record and monitor the collection rate for long-term empty dwellings to identify any significant changes in payment behaviour brought about by these changes.
We will also record any movement in the number of long-term empty dwellings.
