Discounts, disregards and exemptions on council tax
Some people will be eligible for discounts, disregards and exemptions on their council tax. All of these terms have different meanings, so it’s important to know the difference.
Council tax and dementia
Certain people will get a discount and will therefore pay a reduced rate of council tax. For example, anyone living on their own, or treated as living on their own, is entitled to a 25% reduction on their bill. This is called the ‘single person’s discount’. There are other types of discount too.
Disregards apply to people living in the property. Some people are disregarded and become invisible for council tax purposes. So, for example, if one of two occupants is disregarded, it will be as if the other person lives alone, and they will get a 25% single person’s discount on their council tax.
There are different types of disregards based on the reasons for them. The different types of disregards are important because of how they affect exemptions.
A person with dementia may be disregarded if they are severely mentally impaired. This applies to anyone who meets all of the following criteria:
- has a severe impairment of intelligence and social functioning which appears to be permanent,
- has a certificate confirming this impairment from a registered medical practitioner, usually the person’s GP or consultant,
- is entitled to certain disability benefits - the most common qualifying benefits are Attendance allowance (lower or higher rate), Disability living allowance (higher or middle rate care components) and Personal independence payment (lower or higher rate of the daily living component).
Many people with dementia meet all three criteria, so are disregarded under the severe mental impairment rules.
Example: Tony and Gwen are married. Tony meets the ‘severely mentally impaired’ criteria as set out above, and is therefore disregarded for council tax. That means Gwen is treated as living alone, even though she isn’t. They will get the 25% ‘single person’s discount’.
Exemptions apply to properties, rather than people. An exemption means the whole property is exempt from council tax and there is nothing to pay. For example, when the only people occupying the property are disregarded because they are severely mentally impaired, a ‘class U exemption’ applies meaning there is no payment due.
Example: Nancy had been claiming the single person’s discount on her council tax bill because she lived alone. After her diagnosis of vascular dementia she successfully claimed Attendance allowance. Her GP then signed her form under the severe mental impairment rules. This means she is disregarded and her house is now exempt. She pays no council tax.
It is important to know that not all disregards mean the property will be exempt from council tax. Some disregards mean the person doesn’t count for council tax purposes, but the property is treated as if it is empty and will be charged an empty property rate.
Some empty properties are exempt from council tax – for example, if the property is left empty by someone who has moved into hospital or a care home, or gone to receive or provide care because of a disability or illness. However, most properties that are unoccupied for two years or more don’t qualify for a discount. They may even face a 50% increase in council tax, depending on the local council.
If all the people living in a property are disregarded, but no exemption applies, the property will be treated as if it is empty. Under these circumstances, the property would usually attract a charge of 50% of the full council tax. The local council will provide details of charges for the property.
Under new localised support schemes, many local authorities have changed the rules for how these exemptions apply, depending on why the property is not occupied. The council tax department in the local council should be able to advise on any discounts.
Do you need support with your council tax?
Find out about the new Council tax localised support schemes.
Living with a carer
A spouse or partner will not get a discount or disregard as a result of being a carer. If someone lives with and cares for a partner who meets the severe mental impairment criteria (and no one else lives in the property), the spouse or partner will be charged council tax as a single person as if they lived alone, as in the example of Tony and Gwen shown above.
However, some other carers can be disregarded for council tax purposes if they fall into one of two groups. The first group of carers who are disregarded for council tax purposes must meet all the following criteria:
- care for at least 35 hours a week,
- live in the same property as the person they care for,
- are not the partner of the person they care for,
- are not the parent of the person they care for, if the person cared for is aged under 18.
In addition, the person being cared for must be entitled to one of the following benefits: Disability living allowance (middle or highest rate of the care component), Personal independence payment (either rate of the daily living component), either rate of Attendance allowance or Constant attendance allowance. The person being cared for may fulfil all of the severe mental impairment criteria, but this is not essential for the carer to claim. The second group of carers who are disregarded for council tax purposes must meet all the following criteria:
- provide care or support on behalf of a local authority, government department or charity, or provide care through an introduction by a charity, where the person being cared for is the carer’s employer,
- are employed to care for the person for at least 24 hours a week,
- are paid no more than £44 per week,
- live where the care is given. Someone who falls into either of these carer groups is disregarded for council tax purposes. However, the type of disregard they receive is different to someone who is severely mentally impaired. This type of disregard doesn’t mean that the property will be exempt for council tax purposes. The person will pay a reduced council tax bill but they will pay something.
Example: Peter has Alzheimer’s disease and is disregarded for council tax purposes under the severe mental impairment rules. He lives in a house with Jo, his daughter. Jo is also disregarded for council tax purposes because she is recognised by the local authority as his carer (see the first group of criteria above). Therefore, because both Peter and Jo are disregarded, this property is being treated as if it is empty under council tax rules. This means they are eligible for a reduced council tax bill – see ‘Empty properties’.
More than one person in the same dwelling can count as a carer, including where caring responsibilities are being shared.