If you own your own property in England, Wales or Scotland, you will be liable to pay Council Tax (CT) on it. If you live in SFA/SSFA/SLA you pay CILOCT which is a contribution in lieu of CT – the MOD then distribute the funds to local authorities.
Living in your own house as your family home, you will be expected to pay the full amount of CT. If you rent it out you will have to pay the full amount between lets; however, if it is a furnished second home which you use at weekends or holidays only, whilst your main home is your SFA (and in mainland GB), then you are entitled to a reduction.
Should your home remain empty and unfurnished, you will be expected to pay full Council Tax. This amount will depend on which band your home comes under. If you are planning to purchase , or have recently purchased a home, please visit the relevant website for your Local Authority to ensure that you are able to plan and budget, should this be the position you find yourselves in.
AFF is aware that some families are still having issues securing a 50 per cent council tax reduction on a vacant but furnished second home while they are living in SFA/SSFA and paying Contribution in Lieu of Council Tax (CILOCT).
AFF continues to help families overcome unfair disadvantages, which contradict the principles of the Armed Forces Covenant. So, we discussed this issue with the Department for Levelling Up, Housing and Communities (DLUHC) who, after reviewing the policy with their legal team, agreed to write a letter to all Local Authorities (LA) in England reminding them that so long as a serving person meets the criteria, the 50 per cent discount should be given.
The Chief of Defence Staff recently sent a letter to all Local Authorities asking them to ensure that frontline staff are aware of the specific policy and rules that apply for Service personnel. For ease, we have included the link to the letter sent out, please feel free to include this in any application for discount.250314-MOD-Letter-Council-tax-for-armed-service-members.pdf
AFF strongly advises that you obtain a letter from either your Chain of Command, Welfare Team or your Unit Admin Team that states you currently live in service provided accommodation provided by the Secretary of State and you pay CILOCT 365 days of the year. You may be asked to show your LA a copy of the serving person’s assignment order, or the license to occupy, along with the DLUHC letter; however, if you still have issues with securing the discount, please let AFF know by emailing housingsupport@aff.org.uk.
Back to topIf you live in MOD accommodation (recorded on JPA as your main residence) and own another property, you may be entitled to a 50% Council Tax discount on that property if it is empty but furnished. This allows the property to be classed as a second home, rather than an empty property, which may help avoid higher charges.
Key points:
Please see the FAQs below.
A number of Service families are concerned that they now have to pay 100% of CT on their second home, instead of the 50% as set down in legislation under the Statutory Instruments (SIs). Please see the Houses of Commons section below for more information.
Families having problems obtaining this discount should show their local authority the SIs and, if still unsuccessful, should contact the AFF Housing Specialist at housingsupport@aff.org.uk.
Council tax advice – empty properties England, Scotland and Wales
Statutory Instruments 2003 No. 3011
Statutory Instruments 2004 No. 926
Statutory Instruments 2005 No. 416
Statutory Instrument 2012
Explanatory Memorandum to Statutory Instrument 2005 No. 416
Job-related discount explanatory note
(Note: the Statutory Instruments from 2004, 2005 and 2012 are amendments to the first)
Welsh Statutory Instruments 2010 No. 612
Guidance on the Implementation of the Council Tax Premiums on Long-Term Empty Homes and Second Homes in Wales
Scottish Statutory Instruments 2005
Scottish Statutory Instruments 2013
Brief on changes to Scottish Council tax April 2024
AFF is often contacted by military families who live in Service Family Accommodation (SFA) but who also own their own property.
The majority of questions relate to whether or not the family is entitled to a 50% second home discount on the Council Tax (CT) they pay on their own property.
Most frequently asked questions with the answers…
Q. We live in SFA in England for most of the time, but we also have our own property which we use for leave/weekends. Are we entitled to the 50% CT discount on our own property?
A. Yes, as long as your SFA is classed as your ‘main residence’ and your own property (which must be substantially furnished) is classed as your ‘second home’.
Q. I have applied for the 50% CT discount, but the council is questioning which property is my ‘main residence’; my SFA or my own property. What difference does it make?
A. To be eligible for the 50% discount on your own property, your SFA must be classed as your ‘main residence’. Main residency has a legal definition and is dependent upon answers to questions, such as:
If the answer to these questions is your SFA address, then the SFA will be classed as your ‘main residence’, with your own property classed as your ‘second home’. Note, however, that different councils have different criteria. If you live in Scotland or Wales, please refer to the SIs above and note that there may be different definitions depending on where your private home is. Please ensure that your JPA reflects your SFA is your Main Residence and not your own home address.
Q. We have applied for the 50% discount on our own property, but the council insists we have to pay 100%. Is this correct?
A. If your SFA is your ‘main residence’, and your own property is furnished so that it is capable of being used as a ‘second home’, then you should be entitled to the 50% discount.
However, some councils are inexperienced in dealing with Service families and are often unaware that military families pay a Contribution in Lieu of CT (CILOCT) when occupying SFA.
If your local council is reluctant to grant the 50% discount on your own property, and you feel that you fulfil all the criteria to be eligible for it, then persevere with your application and don’t be afraid to request a Valuation Tribunal so that your case can be heard formally. If you feel your caseworker within the LA is not understanding that your SFA is your main residence, please ask to speak to the Line Manager.
Q. My family lives in an SFA but we have bought our own property which we are renovating at the moment. The council refuse to grant the 50% discount – why is this?
A. When renovating a property, it is usually completely empty of furniture. If this is the case the council will not class it as a ‘second home’ but as an ’empty dwelling’. There may be other council tax discounts available for empty properties – contact your council for details. It is worth speaking to your LA if you are renovating a property and unable to live in it as a result as some LAs will offer a discount for a set amount of time if you meet their criteria.
Q. We have been receiving the 50% discount for our own property, but now that we are posted off mainland UK the council tell us the discount will stop – is this correct?
A. Yes. The 50% discount concession does not extend outside mainland Great Britain. Once a military family is posted overseas (or to Northern Ireland) the discount stops as the council automatically classes your GB property as the ‘main residence’ and not as a ‘second home’.
As of April 2013, councils can vary the amount of Council Tax (CT) they charge for some empty properties; this means that there are different rules and charges under different councils.
If you own a property which you rent out, you may now be liable for CT for the period of time it is empty between lets. If you decide to take your rental property off the open market, please ensure that it is substantially furnished to be classed as a second home and not an empty dwelling.
Contact your local council to see what their new regulations are so that you are prepared and can budget accordingly.
Remember: this change does not affect the 50% CT reduction on furnished but unoccupied second homes which Forces personnel should be entitled to under the job related dwelling section, as this was ring-fenced by Parliament so that councils cannot vary the amount of discount they give.
If you have any concerns or issues with Council tax charges or discounts, contact Cat Calder at housingsupport@aff.org.uk.
Back to topSeveral families have told AFF that their family lives in the marital home while the serving person lives in Single Living Accommodation (SLA) and that the council won’t give the spouse a single person’s discount on the council tax bill.
AFF has looked into this and, while it is at the discretion of individual councils, there is an overwhelming mass of legal cases to show that, even if the spouse works away from home and only returns for a few days each year, the family home is considered their main residence and so the remaining spouse will not get a discount.
AFF encourages any families in this situation to approach the council to see if they will take your individual circumstances into consideration, however, be prepared to be told “No” – Council tax: members of the Armed Services.
Back to topCouncil Tax Relief (CTR) payments are paid at a daily rate, reviewed annually, set out in JSP 752, Chapter 3, Sect 1. As of 1 Apr 2026 the daily rate is £5.12 per day spent on a qualifying specified operation or assignment. It now amounts to 100% of an average council tax bill while deployed. With the average council tax bill in England being around £1,200 per year, this equates to a rebate of around £930 for a six-month tour. CTR is not subject to tax.
CTR is paid to those serving personnel who pay or are counted for Council Tax or Rates in Northern Ireland or Contributions in Lieu of Council Tax (CILOCT) for Service Family Accommodation (SFA) council tax in the UK while they are on specified operational tours – it is not paid to those living in SFA who pay CILOCT as this is dealt with separately.
CTR is paid for each day that eligible Service personnel are in the location where the relief has been declared as payable and includes days out of theatre on Rest and Recuperation. Periods spent away from qualifying operations or assignments where Service personnel are short-term deployed to complete other Defence Tasks in the same theatre, but will return to the qualifying operation or assignment upon completion, remain eligible to receive CTR subject to certain conditions. It stops being paid the day after they leave the area. For more information, see JSP 752 Chapter 11 Section 3.
The serving person should speak to their unit HR staff, as they are the people who capture those that are entitled. Take along your council tax bill for the period in question which confirms that the serving person is counted for CT at the property, and also a letter (or other proof) from the local authority showing that you haven’t been given a discount from them due to being on Op Tour.
Payment is calculated on a daily rate and CTR will be paid as a lump sum at the end of the Op Tour in the serving person’s salary. See Discover My Benefits – Army
Back to topBilling authorities in England, Scotland and Wales have the power to increase council tax on properties which have been ‘unoccupied and substantially unfurnished’ for a long period of time. This is known as the ‘empty homes premium’. It is for the billing authority to decide whether to levy an empty homes premium.
Why am I paying an empty homes premium on my council tax?
In England, billing authorities can charge increased council tax on properties that have been unoccupied and substantially unfurnished for more than one year (previously two years), with higher premiums applying as the length of vacancy increases. In Scotland, billing authorities can charge a premium once a property has been empty for one year. Wales introduced similar powers in 2017 and can also apply premiums to second homes.
A period of occupation of more than six weeks in England and Wales (or more than three months in Scotland) counts as a break in the empty period, resetting the qualifying period for the purposes of the empty homes premium.
In England, Scotland and Wales, the empty homes premium cannot apply to homes that are empty due to the occupant living in Armed Forces accommodation for job-related purposes. If any Service families find that their local authority within England is trying to charge more than 100%, please send them this link containing the most recent letter sent to all local authorities in England explaining the exemption from any further premiums being awarded to due living in Service provided accommodation within the UK or overseas: GOV.UK – Council Tax information letter 5/2024: Exceptions to council tax premiums and this MOD letter: Application of Council Tax Discounts for Armed Forces Personnel. Should you continue to face challenges with your local authority, please do let AFF know by emailing housingsupport@aff.org.uk
Second Home Premiums for England & Wales
Since 1 April 2025, billing authorities (district and unitary councils) in England have been able to charge a Council Tax premium of up to 100% (that is, up to 200% of the normal bill) on second homes. However, it’s worth noting that military personnel should be exempt from more than 100% basic rate so long as they can provide evidence that they are living in accommodation provided by the Secretary of State as a job-related dwelling and pay CILOCT 365 days a year.
What is a second home?
In the council tax system, a second home is defined as a property that is “occupied periodically” (For those who have a home in Scotland, you must occupy it for more than 25 days a year) for which “there is no resident of the dwelling, and the dwelling is substantially furnished.” This definition is provided in section 11C of the Local Government Finance Act 1992.
If you own a home in England or Wales and it’s a property that would normally be your main residence if you were not required to live in service provided accommodation by the Secretary of State, so long as it is substantially furnished and has no tenants then you will be entitled to the 50% discount.
To find out if your own home will be subject to the new second home premium and how it works, please find below the link to the Houses of Commons Paper which provided all the information needed. Should you have any further questions, please contact email our team on housingsupport@aff.or.guk
How Council Tax works: Second homes and empty properties – GOV.UK
Why am I paying a council tax premium on my second home?
Back to topScotland
Scottish Government legislation allows councils to charge higher council tax on second homes, and since April 2026 there is no longer a cap on how high these additional charges can be. This means some property owners may face significantly increased bills, depending on local authority decisions.
For service personnel, this raises particular concerns. Many families own a home in Scotland but are required to live elsewhere in Service Family Accommodation (SFA) or Single Living Accommodation (SLA) due to their role. In these cases, their property is often classed as a second home, even though this situation is not by choice.
Scottish regulations do recognise “job-related dwellings” where individuals must live in a different property because of their employment. This aligns with military service, where personnel are required to live in MOD-provided accommodation. Historically, this has meant service families could receive a reduction in council tax on their owned property.
However, under the current system there is no Scotland-wide exemption from second home premiums for service personnel. Instead, local authorities have discretion to decide whether to apply a premium or offer relief, leading to inconsistent outcomes across different areas.
This has the potential to create a postcode lottery, where service families in similar circumstances may face very different levels of council tax depending on where their property is located. In some cases, families may be charged substantial premiums despite having no choice but to live elsewhere for work. Please use this link Council Tax – Local government – gov.scot where you will be able to find out the specific details of what your Local Authority or Council currently offers service families who are required to living in service provided accommodation.
AFF believes this is unfair and risks placing service families at a financial disadvantage because of their Service commitments. We are calling for clearer national guidance or a formal exemption to ensure that those required to live in job-related accommodation are treated consistently and fairly across Scotland.
If you feel that you require further support or are being treated unfairly, please contact housingsupport@aff.org.uk