Little-known Council Tax exemptions mean thousands of people are paying the tax who shouldn’t be.
If you have been paying Council Tax unnecessarily you can claim a refund.
Most people know that students are exempt from paying Council Tax, and single people can claim a discount but there are several other situations where you shouldn’t be paying Council Tax.
If someone in your household is medically certified as having a condition that affects their intelligence and social functioning – for example Alzheimer’s, Parkinson’s or the after effects of a stroke – they don’t have to pay Council Tax in England, Scotland and Wales.
This means that if someone in your household has a severe mental impairment you are entitled to a 25% reduction on your Council Tax bill.
Or, if that person is living alone, they shouldn’t be paying Council Tax at all.
Plus, if you have been paying Council Tax for them you can claim a refund.
Who’s entitled to a Council Tax reduction?
[SPOTLIGHT] There are a number of scenarios where you are entitled to claim a discount on your Council Tax bill.
1. If you live alone
Single-person households are entitled to a 25% discount on their bill.
2. Students
Anyone in full-time education is exempt from paying Council Tax. If someone living in your household is a full-time student you can claim a 25% discount on your bill.
3. You are eligible for certain benefits AND you have been medically certified as having a severe mental impairment*
If you have a severe mental impairment and claim any of the following benefits, you are exempt from paying Council Tax:
- Attendance allowance under Section 64 of the Social Security Contributions & Benefits Act
- Severe disablement allowance
- The highest or middle rate of the care component of a disability living allowance
- The daily living component of personal independence payment
- An increase in the rate of your disablement pension
- Disabled persons tax credit
- Incapacity benefit
- Employment and support allowance
- Unemployability allowance of supplement
- Constant attendance allowance or income support including a disability premium
4. Apprentices
5. Student nurses
6. Persons in detention
7. Patients whose main residence is a hospital
8. Patients in homes
9. Care workers
10. Members of religious communities
Anyone who has no income or capital of their own and is dependent on a religious community for support is exempt from Council Tax.
An example of this would be a nun living in a convent.
11. Members of international headquarters and defence organisations
12. School and college leavers
How to claim
If you are entitled to a reduction on your Council Tax bill and you haven’t claimed it you can claim a refund going as far back as April 1, 1993 when Council Tax was introduced.
This means some people could be due tens of thousands of pounds.
You are also allowed to claim a refund if you lived with someone with a severe mental impairment who has subsequently died.
In order to make a claim you will need to provide evidence of why you are allowed a discount. This could be a written diagnosis of a medical condition, or evidence of your benefits.
Contact your local council and request a claim form to register for a Council Tax discount. This will mean in the future you get the 25% discount on your household Council Tax bill, or complete exemption if the only/everyone person at the property is eligible.
You can claim a refund separately by writing to your local council explaining your situation and why you believe you are due a refund.
*Note, this article was updated to clarify that you need to have both a mental impairment and be claiming one of the listed benefits to qualify for the Council Tax exemption.
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