The Government has made the Local Government (Structural Changes) (Finance) (Amendment) Regulations 2026 (SI 2026/406), clarifying how the notice period for applying the second‑homes council tax premium works after local government reorganisation. The instrument was made and laid on 14 April 2026 and comes into force on 8 May 2026.
Section 80 of the Levelling‑up and Regeneration Act 2023 inserted section 11C into the Local Government Finance Act 1992, giving billing authorities in England discretion to charge up to a 100% premium on dwellings occupied periodically (commonly, second homes). On the first occasion an authority decides to apply the charge, the determination must be made at least one year before the start of the financial year in which it will apply, and authorities must have regard to the Secretary of State’s guidance. (legislation.gov.uk)
Structural change orders under the Local Government and Public Involvement in Health Act 2007 can consolidate several predecessor billing authorities into a single successor. The Local Government (Structural Changes) (Finance) Regulations 2008 provide the continuity framework for finance functions through and after such reorganisations, including council tax. (assets.publishing.service.gov.uk)
SI 2026/406 amends regulation 9 of the 2008 Regulations to address mixed histories within a reorganised area. Where at least one-but not all-predecessor billing authorities made a determination under section 11C(1) before the reorganisation date, any later decision by the successor which applies to the remaining parts is treated as the successor’s first determination for those specific parts.
The legal effect is that the one‑year notice requirement in section 11C(3) runs separately for each predecessor area that had not previously adopted the premium. Earlier decisions covering other parts of the reorganised area do not accelerate commencement in places with no earlier determination; this preserves statutory notice to taxpayers and enables accurate taxbase planning. (gov.uk)
Example: a unitary council created on 1 April 2026 inherits Areas A, B and C. Area A had determined a second‑homes premium before reorganisation; Areas B and C had not. If the successor resolves on 30 June 2026 to introduce the premium in Area B, the earliest practical start is 1 April 2028, because a first determination must be made at least a year before the beginning of the year to which it relates. Revenue from Area B therefore cannot be included in the 2027–28 taxbase.
The successor may retain or vary the premium already operating in Area A, but any variation must be made before the financial year in which it will apply. By contrast, any initial decision for Area C would trigger its own one‑year notice period counting from the date that first determination is made. (legislation.gov.uk)
For billing authorities, the operational steps are time‑critical: draft the section 11C determination for the area concerned; publish the statutory notice within 21 days of the decision; and align the timing with taxbase calculations and billing arrangements. Government guidance emphasises early decision‑making so that changes can be built into the following year’s taxbase and signalled clearly to taxpayers. (legislation.gov.uk)
For owners of second homes in parts of reorganised areas that had not previously been subject to a premium, the amendment guarantees a minimum of 12 months’ notice before any new charge can take effect. Existing premiums in other parts of the same successor area continue unaffected.
Scope and timing are therefore clear: the Regulations extend to England and Wales but modify the operation of section 11C for English billing authorities established by structural change orders. They take effect from 8 May 2026 and should be factored into 2027–28 and 2028–29 planning depending on decision dates.