Households across the UK may be eligible for a full or partial discount on their annual council tax bill under rules set by the Labour Party government. The government website outlines seven criteria that could qualify residents for a reduction of between 25 and 100 percent.
Who Qualifies for a Full Exemption?
You will not pay council tax if you are a full-time student, in the Armed Forces living in Forces accommodation, reside in a care home or hospital, or if your home is unoccupied and empty for up to six months—for example, if you have gone into hospital. Additionally, if you have a severe mental impairment such as dementia, you may be disregarded for council tax purposes. If you live only with someone who has dementia, you will be treated as a sole occupant, but both of you will not be exempt.
Seven Groups Eligible for Discounts
You could cut your council tax bill by 25 to 100 percent if any of the following apply:
- You live alone or only with those under 18
- You or someone you live with has a severe mental impairment (SMI)
- You are a live-in carer or live with one
- You are a full-time student
- You are on a low income
- You get Pension Credit or other means-tested benefits
- You have a disability
Challenge Your Council Tax Band for a Refund
You can also get a council tax discount by challenging your band. Martin Lewis, the BBC and ITV star, warns that many valuations are based on outdated figures from the early 1990s. One Money Saving Expert reader told Mr Lewis: "Our thanks go to your team for giving my husband the confidence to get in touch with our council. We have lived in our house for over 30 years and always felt our Council Tax was too high. We live in the smallest house in our close, but were paying the same as the rest. After months of communication, we are delighted to report we have had a refund of over £8,000 – plus a reduction of £50 a month going forward. This is going to help us tremendously."
A second reader said: "Thanks for your advice on Council Tax banding. I recently challenged my own banding using the information on your website and am pleased to say I have been rebanded from E to D. I've received a rebate dating back to 1993 for £7,943, plus a reduction of £470 for this year and those going forward."
These examples show that significant savings are possible for those who take action. The government advises checking your eligibility and considering a band challenge if you believe your property is in the wrong band.
