How to claim Council Tax discounts in the UK
If you are on a low income or live on your own, you may get help to pay for your Council Tax bill. You will need to apply Council Tax reduction (CTR), also known as Council Tax Support (CTS); you might even get a full Council Tax exemption. Find out how Council Tax works and what discounts or exemptions you can claim.
Understanding Council Tax
Council Tax is a tax collected by councils from properties in their area to pay for local services. Full Council Tax is charged if there are two or more adults living in your household, but there are discounts or even exemptions available depending on your circumstances.
What is Council Tax?
Council Tax is an annual tax collected by your local council to help fund services near your home. Your property will be in one of eight bands. The lowest is band A. H is the highest paying band.
Council Tax is collected in England and Wales, and, with a slightly different system, in Scotland. There is no Council Tax in Northern Ireland, where a rates system still operates.
Council Tax is based on the value of the property more than 20 years ago. In England this was 1 April 1991. In Wales it was 1 April 2003. If your home was built then, it was valued at the time.
The Valuation Office Agency (VOA) gives new homes a price based on whether it had been sold in England in 1991 and in Wales in 2003. In Scotland initial valuations were also done on 1 April 1991 and Scottish Assessors calculate the value to apply to new homes.
The value of property varies around the UK, and the amount central government gives to each council to fund their core services goes up and down. This means each council sets its own charges for each band. Two councils next to each other might have different Council Tax rates.
The following property band values were set in 1991.
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Who sends me my Council Tax bill?
Which council sends you your Council Tax bill depends on where you live. In two-tier areas – when a district and county council each provides some services – the district council sends the Council Tax bills.
If you live in a single-tier area, then you pay your unitary authority. This might be a rural shire council, a metropolitan district council or a London borough.
What else is on my Council Tax bill?
Only one council sends a bill, but it will often include amounts for other authorities. In a two-tier system there will be an amount for the county council, for example. These added amounts from other authorities are called precepts. There could be several, depending on where you live and which authority provides each service.
Even in single-tier councils there will be added amounts. The local police force – or crime commissioner – raises some of its budget through Council Tax, as does the fire service. In London, for example, these are all run by the Greater London Authority (GLA) so this appears on a London borough’s Council Tax bill.
In some areas there are small parish or town councils too. Their budget will show on your bill as a precept as well.
Why is Council Tax important?
Paying your Council Tax is important because you can be sent to prison for three months if you refuse to pay and don’t have a good reason.
The Council Tax pays for essential services. Your Council Tax bill will tell you where the money is spent.
As a result, non-payment of the Council Tax can result in deductions from your pay or benefits and even prison. Councils begin prison proceedings against several thousands of non-payers each year. As many as 100 people a year go to prison for non-payment.
Council Tax money is spent on:
- Police and fire services
- Leisure and recreation projects, such as maintaining parks and sports centres
- Libraries and education services
- Social services
- Rubbish and waste collection and disposal or recycling
- Transport and highway services, including street lighting and cleaning and road maintenance
- Environmental health and trading standards
- Administration and record-keeping, such as marriages, deaths and births, and local elections
What are the types of Council Tax discounts?
The types of Council Tax discounts range widely. You may not be counted for paying the tax – called being ‘disregarded’. You may get a percentage off your bill or be moved to a lower band.
Even if you have two adults living in a property you may still get help with your Council Tax. Discounts include if you are:
- On a low income
- A student or living with students
- Living alone or the only adult in your home
- On benefits, including Jobseeker’s Allowance, Income Support, Pension Credit, Employment and Support Allowance and Universal Credit
- Disabled or someone you live with has a disability
- Severely mentally impaired or living with someone who is
- A care leaver in Scotland or in some councils in England and Wales (you may be exempt from paying Council Tax between the ages of 18 and 26)
- A member of the Armed Forces
- Living in a care home or hospital
- In prison – unless you are serving a prison sentence for failing to pay the Council Tax
What is the Council Tax single-person discount?
The single-person Council Tax discount gives you 25% off your Council Tax. You would normally be the only adult in the property. You can also get it if you have dependents under the age of 18 or other children living in your home who are students or apprentices, for example.
Student exemptions from Council Tax
If everyone in your home is a full-time student, you may not have to pay Council Tax. You will need to be on a course lasting at least one year and be studying for at least 21 hours a week.
If you are under 20 and studying up to A Level, then you will get a Council Tax exemption. Your course needs to be at least three months long and involve at least 12 hours study per week.
Council Tax reduction if you have a disability
You can apply for a Council Tax discount or exemption if you or someone you live with has a disability. This is the disabled band reduction and applies if an adult or child are having to live in a larger property than they would otherwise need.
If you need an extra bathroom, kitchen or extra space inside the property for disability equipment such as a wheelchair, this may apply. Your Council Tax bill will be reduced to the next lowest Council Tax band; if you are in band A, you will get a 17% discount instead.
Council Tax payments if you are in the armed forces
If you live in service accommodation, you will be paying a contribution in lieu of Council Tax – or CILOCT. This payment will appear on your payslip.
Discounts for severely mentally impaired people
You can get a Council Tax exemption if you or someone you live with is severely mentally impaired. You will need to be either living on your own, or with an adult or other adults who are also severely mentally impaired.
If everyone else in your household is ‘disregarded’, you will get a 50% discount.
If you live with someone who qualifies as severely mentally impaired – and everyone else in your home is disregarded – the Council Tax discount is 25%.
Who is disregarded for Council Tax?
Some people are not counted for Council Tax purposes –the term used is disregarded. This means they don’t pay Council Tax. You’re disregarded if you are:
- Under 18 years old
- On certain apprenticeships
- 18 or 19 and in full-time education
- A full-time student at college or university
- Under 25 and funded by the Education and Skills Funding Agency
- A student nurse
- A foreign language assistant registered with the British Council
- Severely mentally impaired
- A live-in carer for someone who is not your partner, spouse, or child under 18
- A diplomat
Other reasons you may get a Council Tax discount
You might be able to get a 'second adult rebate’ if you were rejected for a CTR. This applies when someone else lives in your home who on a low income or who is getting certain benefits. They cannot be your partner, be paying you rent, have a direct relationship with your landlord or partly own your home.
Step-by-step guide to claiming your Council Tax discount
This guide will tell you how to apply for a Council Tax Reduction (CTR) or exemption.
The documents needed to apply for Council Tax Reduction
Most councils will want to have original documents to make their own copies. If your application includes your partner and any other adults in your home, you will need to provide documentation on their behalf.
Things you need:
- Your National Insurance number
- Proof of ID, such as a birth certificate, marriage certificate, passport or driving licence – one of these must be photographic ID
- Evidence of benefits, allowances, tax credits, Pension Credits or other income such as a pension
- If you are student or in full-time education you should provide a letter with any details of student grants, loans or maintenance
Council Tax Reduction application process
You will need to fill in a form or apply online. Most local councils will also let you apply by telephone.
After you apply for Council Tax Reduction, your local council should decide quickly. There is no set timetable but it would usually be within two or three weeks. You may also be able to backdate your claim if you were in hospital or ill, for example.
You can appeal if the council rejects your application. First explain to the council why you think they got it wrong. They should reply within two months. If you remain unhappy, you can use the independent appeals process.
Council Tax Support – FAQs
Do I have to pay my Council Tax in full?
Not everyone has to pay the Council Tax in full. There are range of discounts and exemptions. Even if you don’t fall into any of those categories but you are struggling to pay your Council Tax you can ask your local authority for a discretionary reduction. If you have fallen behind with Council Tax payments, you can also apply for a discretionary reduction at the same time as putting through a CTS application.
Can I claim a Council Tax discount as a tenant?
The same rules apply if you are tenant or a homeowner. If you live alone or everyone else in the household is disregarded, you can apply for a 25% single person’s Council Tax discount. Students can apply for the student discount.
How long does the process take?
Most local authorities decide within two to three weeks, but check with your local council when you make your application.
What if my application for a Council Tax discount is denied?
You have the right to ask your council to reconsider and you can appeal. Local councils have up to two months to decide whether to change their original decision. If you still disagree you can appeal to the Valuation Tribunal.
Making sure you are paying the right Council Tax
If you feel your Council Tax bill is too high you may also want to check that the council has valued your property correctly. To do this, you can apply to the Valuation Tribunal.
If you are having problems paying your Council Tax bill, speak to your local council. If you have fallen behind, they may be able to help with an affordable payment plan.
You can also get help from MoneyHelper and Citizens Advice.