Inherited property council tax: who pays and when
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Inherited property council tax depends on whether the house is empty, let or lived in, and on where the estate is in probate. If you're dealing with the property of someone who has died, you don't need to pay Council Tax until after probate is granted, as long as the property stays empty; after probate, there may be a further 6-month exemption if it's still unoccupied and still in the deceased's name [1].
Empty and in probate: no Council Tax until the grant [1]. Empty after probate and still in the deceased's name: possibly exempt for 6 more months [1]. Once transferred to you and empty, you'll usually pay; councils can charge an empty home premium after one year empty (up to 4 times the bill after 10 years) or a second homes premium of up to 2 times, but you may not have to pay the premium for up to 12 months after a grant of probate [1]. If it's let, the resident tenant is normally liable; the law makes the owner liable only where no one is resident or for certain prescribed types of property [2][6].
General information for England. Council Tax rules differ in Scotland and Wales.
Inherited property council tax: the stages
| Stage | Property empty? | Council Tax |
|---|---|---|
| Death to grant of probate | Yes | Not payable, as long as it stays empty [1] |
| After grant, still in deceased's name | Yes | Possible exemption for up to 6 months [1] |
| After transfer to beneficiary | Yes, unfurnished | Usually payable; council may give a discount [1] |
| After transfer, furnished, no one living there | Second home | Usually payable; premium up to 2 times possible [1] |
| Empty at least a year | Yes | Empty home premium possible [1] |
| Let to tenants | No | Resident tenant normally pays [2] |
| Certain prescribed property types, which can include some shared houses | No | Owner can be liable instead; ask the council [6] |
The exemption between death and probate
GOV.UK: "If you're selling a property on behalf of an owner who's died, you do not need to pay Council Tax until after you get probate as long as the property remains empty" [1]. Tell the council about the death and ask them to apply the exemption. The Tell Us Once service can inform several government bodies at once; councils are usually among them [3].
If a relative moves in during probate, the property is no longer empty and the exemption ends.
The 6 months after probate
After probate is granted, "you may be able to get a Council Tax exemption for another 6 months if the property is both unoccupied and still owned and in the name of the person who died" [1]. Once the executor transfers the property into a beneficiary's name, this exemption stops applying. So the timing of the transfer matters: if you're selling, it may make sense for the executor to sell directly rather than transfer first. Discuss it with the executor, as there are also Capital Gains Tax reasons for choosing who sells (see Capital Gains Tax on inherited property).
Inherited property council tax premium
Councils in England can charge extra on empty homes and second homes.
Empty home premium. If a home has been empty for at least a year, the council can charge more. It can be up to 4 times the normal bill if the home has been empty for at least 10 years [1].
Second homes premium. A furnished property no one lives in as their main home is a second home. Councils can charge up to 2 times the normal Council Tax [1].
The probate grace period. For both premiums, GOV.UK says you may not have to pay the premium for up to 12 months if you recently received a grant of probate or letters of administration for the property, or if it's being marketed for sale or to rent [1]. Empty homes undergoing major repairs may also qualify [1]. You still pay the standard rate unless another discount or exemption applies [1]. Contact the council to apply.
Worked example
Ben's mother dies on 1 February 2026. Her house is empty. Probate is granted on 1 July 2026.
| Period | Status | Council Tax |
|---|---|---|
| 1 Feb to 1 Jul 2026 | Empty, before probate | Not payable [1] |
| 1 Jul to 1 Jan 2027 | Empty, still in mother's name | Possibly exempt for 6 months [1] |
| After transfer to Ben on 1 Oct 2026 | Empty, in Ben's name | Payable from transfer; premium grace possible for up to 12 months from probate [1] |
In this example, transferring on 1 October ends the 6-month exemption early. If Ben had left the house in his mother's name until he sold, the exemption could have run until 1 January 2027.
If you let the inherited property
Once a tenant is resident, they normally pay Council Tax. The Local Government Finance Act 1992 sets out who is liable in order, with residents (including tenants) ahead of a non-resident owner [2]. For some prescribed classes of property the owner is liable instead [6]; if you've inherited a shared house, ask the council which applies. GOV.UK's guidance for tenants lists paying charges agreed with the landlord, such as Council Tax, as a tenant responsibility [7]. Between tenancies, the landlord pays, and the council may apply a discount at its discretion [1]. If you pay Council Tax on a let property during a void, it's an allowable expense against your rent [4].
If you move into the inherited property
If you make it your main home, you pay Council Tax as the resident. If you now own two homes, you must tell HMRC which is your main home for Capital Gains Tax within 2 years [5]. That's separate from Council Tax.
Renovating an inherited property
If you're doing major works and nobody can live there, you can ask for the property to be removed from the Council Tax list, meaning no Council Tax is due [1]. Councils make the decision. Keep evidence of the works.
Steps to take
- Tell the council about the death and that the property is empty.
- Ask for the before-probate exemption.
- When probate is granted, tell the council and ask about the 6-month exemption while the property is in the deceased's name.
- If the property will stay empty or furnished, ask about the 12-month premium grace after probate.
- When it's transferred, let or sold, tell the council the date.
Keep copies of every letter. Gaffy's document vault is a good place to keep council correspondence alongside the property's other paperwork.
Discounts that may still apply
Even when Council Tax is payable, the bill may be reduced. A full bill assumes at least 2 adults living in a home; if you live there alone you get 25% off, and if everyone living there is "disregarded" (for example full-time students) the discount is 50% [8]. If you move into an inherited house on your own, ask for the single person discount. Empty and second home discounts are at each council's discretion [1].
Common mistakes with Council Tax on inherited property
| Mistake | What to do instead |
|---|---|
| Not telling the council about the death | Tell them early, so the before-probate exemption is applied [1] |
| Letting a relative stay "for a few weeks" | Any occupation means the property isn't empty; check first [1] |
| Transferring the property before selling without thinking about timing | The 6-month post-probate exemption needs it to be in the deceased's name [1] |
| Assuming the premium applies straight away | You may have 12 months' grace after probate, or while marketing for sale or rent [1] |
| Paying during a void and not claiming it | A landlord's Council Tax during voids is an allowable expense [4] |
What to tell the council, and when
| Event | Tell the council | What to ask for |
|---|---|---|
| Death | As soon as practical | Exemption while empty before probate [1] |
| Grant of probate | When it arrives | Exemption for up to 6 months while still in the deceased's name [1] |
| Transfer to a beneficiary | On the transfer date | Bill in the new owner's name; any discount or premium grace [1] |
| Tenant moves in | Move-in date | Bill transferred to the resident tenant [2] |
| Sale | Completion date | Final bill to completion |
Write each time and keep a copy. Councils often backdate changes, but only if they have the dates.
People also ask
Do I have to pay council tax on an inherited property?
Not while it's empty and before probate. After probate, there may be 6 more months' exemption while it's still in the deceased's name [1].
Is there a council tax premium on an inherited house?
Councils can charge premiums on second homes and long-term empty homes, but you may not pay the premium for up to 12 months after a grant of probate [1].
Who pays council tax on a rented inherited property?
Normally the resident tenant. In some prescribed types of property the owner pays; ask the council [2][6].
Does the executor pay council tax?
If any is due before transfer, it's an estate expense.
What if a family member lives in the inherited house?
The property isn't empty, so the exemption doesn't apply. The resident is normally liable [2].
FAQ
Does the exemption apply if the house is furnished?
The before-probate rule is about the property remaining empty, meaning no one living there [1]. Ask the council how it treats furniture left in a deceased person's home.
Can I claim back Council Tax paid in error?
Contact the council with the dates of death and probate.
Is Council Tax deductible from rent?
Yes, if you pay it as the landlord [4].
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Sources
- GOV.UK, Council Tax: second homes and empty properties: https://www.gov.uk/council-tax/second-homes-and-empty-properties
- Local Government Finance Act 1992, section 6: https://www.legislation.gov.uk/ukpga/1992/14/section/6
- GOV.UK, Dealing with the estate: settling debts and taxes: https://www.gov.uk/probate-estate/settling-debts-and-taxes
- GOV.UK, Renting out your property: paying tax: https://www.gov.uk/renting-out-a-property/paying-tax
- GOV.UK, Tax on property, money and shares you inherit: property: https://www.gov.uk/tax-property-money-shares-you-inherit/property
- Local Government Finance Act 1992, section 8: https://www.legislation.gov.uk/ukpga/1992/14/section/8
- GOV.UK, Private renting: https://www.gov.uk/private-renting
- GOV.UK, Council Tax: who has to pay: https://www.gov.uk/council-tax/who-has-to-pay