Council Tax & Utilities During Void Periods: Can Landlords Claim? (2026/27)
Last updated 24 June 2026 · 8 min read · By the LandlordTaxAi Editorial Team
The short answer
When a tenancy ends, the landlord usually becomes liable for council tax and utility standing charges during the void. The good news: these costs are tax deductible as long as the property remains available to let and the rental business is ongoing — the void doesn’t break the deduction.
Void periods are every landlord’s least favourite phrase: no rent coming in, but bills still going out. Between tenancies, responsibility for council tax and utilities typically falls back on you — and many landlords don’t realise these empty-property costs are still allowable expenses.
This guide explains who pays what during a void, when the costs are deductible, and the one situation that can disallow them. For the wider list, see allowable expenses for landlords.
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Rental Profit Calculator (incl. Void Costs)
Add void-period council tax, bills and repairs to see your taxable rental profit for 2026/27.
Result
- Taxable profit (rent − expenses)
- £11,200
- Income Tax at 20%
- £2,240
- Less mortgage interest credit (20%)
- − £1,000
- Tax due on this property
- £1,240
- Income after tax
- £9,960
Void costs are deductible while the property is available to let. Estimate only.
Who pays during a void
Once a tenant moves out and the tenancy legally ends, liability for council tax and utility standing charges reverts to the property owner. Some councils offer a short empty-property discount or exemption, but many charge full council tax — and some levy a premium on long-term empty homes.
Utility standing charges keep accruing even with no usage, so a void rarely means zero outgoings.
Check your local council’s empty-property policy — discounts vary widely, and long-term empties (typically over a year, sometimes two) can attract a council tax premium of up to 100% or more.
When void costs are tax deductible
The test is the usual one: costs incurred wholly and exclusively for the rental business are allowable. A void between lettings doesn’t end your rental business, so council tax, utility standing charges, insurance and maintenance during that gap remain deductible — provided the property is genuinely still available to let.
The deduction continues as long as you’re actively trying to re-let. What breaks it is taking the property out of the rental business — moving in yourself, letting a family member use it, or withdrawing it from the market.
| During the void you... | Costs deductible? |
|---|---|
| Are actively marketing the property to re-let | Yes — ongoing rental business |
| Use it yourself or let family stay rent-free | No — private use breaks the test |
| Withdraw it from letting permanently | No — business has ended |
| Carry out repairs to ready it for the next tenant | Yes — repairs are allowable too |
Keep evidence that you were marketing the property — agent listings, adverts, correspondence. It proves the void was a genuine gap between tenancies, not private use.
Recording void costs under MTD
Void-period costs go into their normal categories — council tax, utilities, insurance, repairs — in your digital records. Under Making Tax Digital (from April 2026 for the over-£50,000 cohort), they’re reported in the relevant quarterly update like any other expense.
Because there’s no rent in a void quarter, your update may show a loss for that period. That’s fine — property losses are carried forward against future rental profits. See filing a quarter with no rental income.
Don’t lose relief on empty-property costs
LandlordTaxAi tracks void-period council tax, bills and repairs in the right categories and carries forward any loss — so a gap between tenants still works in your favour at tax time.
See how it worksA worked example
Meera’s flat is empty for two months between tenancies while she markets it. She pays £240 council tax and £60 utility standing charges, plus £400 redecorating.
| Council tax (void) | £240 |
| Utility standing charges | £60 |
| Redecoration to re-let | £400 |
| Total deductible void costs | £700 |
| Condition | Property actively marketed to re-let |
Because Meera was genuinely trying to re-let, all £700 is allowable against her rental profit — the void doesn’t disqualify the costs.
Frequently asked questions
Who pays council tax when a rental is empty?
Usually the landlord, once the tenancy ends. Some councils give an empty-property discount, but many charge full council tax and may add a premium on long-term empties.
Can I deduct council tax during a void?
Yes — as long as the property remains available to let and you’re actively trying to re-let it, council tax during the void is an allowable expense.
Are utility standing charges deductible in a void?
Yes, where you pay them as the owner and the property is still part of your rental business between tenancies.
What stops me claiming void costs?
Private use. If you move in, let family stay, or withdraw the property from letting, the costs stop being wholly and exclusively for the business.
What if the void quarter shows a loss?
That’s normal. Rental losses are carried forward and set against future rental profits — you don’t lose them.
Do I need proof the property was available to let?
Yes, ideally. Keep agent listings or adverts showing you were marketing it, in case HMRC questions the void.
Written and reviewed by the LandlordTaxAi Editorial Team. Our guides are reviewed against current HMRC guidance and updated when the rules change. Operated by LandlordTaxAi, United Kingdom. Follow us on LinkedIn.
Last reviewed: 24 June 2026 · Researched against primary UK sources for the 2026/27 tax year: https://www.gov.uk/guidance/income-tax-when-you-rent-out-a-property-working-out-your-rental-income; https://www.gov.uk/council-tax/second-homes-and-empty-properties; https://www.litrg.org.uk/savings-property/property-income/working-out-property-income. This article is informational only and does not constitute tax advice. Check the latest details on GOV.UK or with a qualified accountant.