Council Tax is a tax charged by local councils on the dwellings in their area.
All homes are given a notional value and put into one of eight bands from A to H.
Each year, the council sets a charge level for band D and the charge for each other band is set as a proportion of this.
There are several ways of reducing the amount of Council Tax that you must pay including:
- Property exemption
- Disability reduction
- Single person discounts
- Council Tax reduction
- Second adult rebate
Exemption
The council tax bill for an exempt property is zero. These include:
- Properties where all the occupiers have a severe mental impairment.
- Properties where all the occupiers are students or school or college. leavers.
- Properties where all the occupiers are aged under 18.
- Some unoccupied properties where the usual resident is in care, hospital, prison, or away from home providing care.
Disability Reduction
The bill is reduced by one band, or the equivalent for band A properties, if your home has:
- Enough floor space to use a wheelchair.
- A room, not including the only kitchen bathroom or lavatory, especially for a person with a disability.
- An additional bathroom or kitchen for a person with a disability.
Single Person Discount
Council Tax assumes that two adults live in each property. If only one adult lives in the home, a 25% discount is allowed. In counting the number of adults some people are invisible including if:
- You are a student.
- You have a severe mental impairment.
- You are an apprentice.
Council Tax Reduction
Formerly known as Council Tax Benefit, Council Tax Reduction is a local scheme in which different councils make up their own rules. All schemes must meet minimum standards in which:
- The reduction is means-tested. The amount of help you get depends on your income.
- There will be a savings limit.
- You must make a claim to get the reduction.
- If you get Guarantee Credit of Pension Credit the reduction will cover the full bill.
Second Adult Rebate
You do not get a single person discount if a second adult lives in your home.
If that person either gets means-tested benefit, or is on a low income, you may be able to claim a second adult rebate of up to 25% of the bill.
Different councils have different rules about whether they offer second adult rebate.
Severe Mental Impairment
A severe mental impairment is an impairment of intelligence and social functioning that appears to be permanent.
You must have a certificate of confirmation that is provided free of charge by your doctor.
You must be eligible for one of a range of benefits including PIP Daily Living, DLA Care Component and Attendance Allowance; or Universal Credit with a LCW or LCWRA element.