Council tax
Factsheet 414LP
January 2021
Council tax is a charge that local authorities make on residential
properties in England and Wales to help pay for local services. Some
people with dementia are eligible for a discount on their council tax bill.
Sometimes the people who care for them are eligible for a discount
too. This factsheet looks at who needs to pay council tax, and the
reductions, discounts and exemptions that may be available.
This factsheet is for people living in England and Wales. Northern Ireland
has a rates system – charged on the value of individual properties. For
information on discounts and exemptions if you are in Northern Ireland,
contact the Land and Property Service in your local area (see ‘Other
useful organisations’ on page 13).
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Contents
n Who pays?
n Discounts, disregards and exemptions
— Discounts
— Disregards
— Exemptions
n Living with a carer
n Empty properties
n Council tax reductions for people with disabilities
n Backdating for discounts, disregards and exemptions
n Appeals
n Support with council tax
— Council tax support and Universal credit
n Other useful organisations
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If you are living with dementia or caring for a person with dementia, it may
affect how much council tax you pay.
Council tax applies to both owner-occupied and rented homes. The bill for
each property is worked out on the basis that two or more adults are living
there. However, you will usually still need to pay council tax if there is only
one person living there.
The amount that needs to be paid in council tax on each property depends
on a number of things. These include:
n which pricing ‘band’ (category) the property is in, based on its value
n the rate set by the local authority
n whether the people living there are eligible for any support, reductions or
exemptions.
Who pays?
One or more people can legally be responsible for paying the council tax
for a property. However, only one bill will be sent to the property, regardless
of the number of people who live there. Joint owners or joint tenants are
jointly responsible for council tax. The same applies to married couples,
civil partners and people living together as partners.
Discounts, disregards and exemptions
Some people with dementia and their carers 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 differences, which are
explained below.
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Discounts
Certain people will get a discount and will therefore pay a reduced rate of
council tax. There are a few different types of discount available. The most
common example is that anyone living on their own, or treated as living on
their own (see ‘Disregards’ below), is entitled to a 25% reduction on their bill.
This is called the ‘single person’s discount’.
Disregards
Disregards may apply to people living in the property. People who are
disregarded are not counted for council tax purposes. For example, if two
people are living together and one is disregarded, it will be charged 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. These different types are important because of how they affect
exemptions (see ‘Exemptions’ on page 6).
Severe mental impairment
Anyone can be disregarded if they are classed as ‘severely mentally
impaired’. The legal denition of ‘severe mental impairment’ is broad and
can be open to interpretation. It does not depend on someone having a
diagnosis of dementia or losing mental capacity. It applies to anyone who
meets all of the following criteria:
n They have a severe impairment of intelligence and social functioning
which appears to be permanent.
n They have a certicate conrming this impairment from a registered
medical practitioner, usually the person’s GP or consultant.
n They are entitled to certain disability benets (but they don’t have to
actually be receiving them). The most common qualifying benets are:
— Attendance allowance
— Disability living allowance (higher or middle rate care components)
— Personal independence payment (either rate of the daily living
component).
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Many people with dementia meet all three criteria, so are disregarded
under the severe mental impairment rules.
n Example: Tony and Gwen are married. Tony meets the ‘severely mentally
impaired’ criteria and has applied to the council, so he is disregarded for
council tax. That means Gwen is treated as living alone, even though she
is living with Tony. They will get a 25% reduction on their bill. Their income
and savings won’t affect this. However, if they have a low enough income
they may be entitled to additional council tax support (see ‘Support with
council tax’ on page 11).
However, if the person who is recognised as being severely mentally
impaired lives with two or more adults, there will usually be no reduction in
the overall council tax bill on this basis.
A severe mental impairment disregard application form will be available
from your local council (see ‘Other useful organisations’ on page 13). Make
sure it is the correct form – unlike some other application forms, it should
not ask for details of income or savings.
Different medical professionals may have different views about when a
person qualies as severely mentally impaired. If your GP is unwilling to
sign a certicate conrming severe mental impairment you could ask a
consultant, or another GP at your practice. Medical professionals cannot
legally charge for this service.
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Exemptions
Exemptions apply to properties, not people. An exemption means the
whole property is excluded 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 no payment is due.
n Example: Priya 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 certied that she is severely mentally impaired. This means she is
disregarded and her house is now exempt. No council tax has to be paid
on her property.
If all the people living in a property are disregarded but not all under the
severe mental impairment criteria, the property won’t be exempt from
council tax. Instead, the property will be treated as if it is empty and council
tax may still be charged. See ‘Empty properties’ on page 8.
The council tax system is complicated. For more information, contact
your local authority’s council tax department – see ‘Other useful
organisations’ on page 13. They should be able to advise you about how
to apply for any of the discounts, disregards and exemptions described
in this factsheet.
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Living with a carer
A spouse or partner of a person with dementia will not get a discount or
disregard simply as a result of being a carer. As long as there is no one else
counted as an adult living in the property, someone living with and caring
for a partner who meets the severe mental impairment criteria will get a
‘single person’s discount’ on their council tax (see page 4).
However, some other carers and care workers can be disregarded for
council tax purposes if they fall into one of two groups. In either group, the
carer can be disregarded even if the person with dementia does not meet
the severe mental impairment criteria.
1. The rst group of carers who are disregarded for council tax purposes
must meet all the following criteria. They must:
— care for at least 35 hours a week
— live in the same property as the person they care for
— not be the partner of the person they care for
— not be 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 benets:
— Disability living allowance (middle or highest rate of the care
component)
— Personal independence payment (either rate of the daily living
component)
— Attendance allowance
— Constant attendance allowance
— Armed Forces independence payment.
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2. The second group of carers who are disregarded for council tax
purposes must meet all the following criteria. They must:
— provide care or support on behalf of a local authority, government
department or charity, OR provide care through an introduction by a
charity if the person with dementia is the carer’s employer
— be employed to care for the person for at least 24 hours a week
— be paid no more than £44 per week
— live where they provide care.
A carer who is in either of these groups is treated as a disregard. This type
of disregard doesn’t mean that the property will be exempt for council tax
purposes, but there should be a reduced council tax bill.
n 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 Lina, his daughter. Lina is also disregarded for council tax
purposes because she is recognised by the local authority as his carer
(see group 1 of the criteria list). Therefore, because both Peter and Lina
are disregarded, this property is being treated as if no one is living there
under council tax rules. This means they are eligible for a reduced council
tax bill – see ‘Empty properties’ below.
More than one person in the same property can count as a carer, including
where caring responsibilities are being shared.
Empty properties
Empty properties aren’t usually exempt from council tax but the council
tax bill may be reduced by the local authority. However, there are some
situations when a property is left unoccupied and council tax is not
charged, such as:
n someone with dementia who has moved into hospital or a care home, or
n someone who has gone to provide care for a person with dementia.
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Most properties that are unoccupied for two years or more don’t qualify for
a discount. They may even face an 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 no one is living there. Under these
circumstances, the property would usually incur a charge of 50% of the full
council tax. The local council will provide details of charges for the property.
Under localised support schemes (see ‘Support with council tax’ on
page 11), many local authorities have changed the rules for how these
exemptions apply, depending on why the property is empty.
Council tax reductions for people with disabilities
It is sometimes possible to claim a reduction on the council tax bill if
someone living in the property is assessed as being substantially and
permanently disabled, and requires special facilities to meet their needs.
This could include:
n a room that is mainly used by the person who is disabled
n an extra bathroom or kitchen
n space inside the home so that a person can move around in a wheelchair.
If this is the case, the bill will be reduced to the rate of the band below
the one the property is in. For example, someone living in a band
C property would be charged the rate for the cheaper band B property.
Those with band A properties (the lowest band) will have their bills reduced
by one sixth.
This reduction can be applied in addition to other discounts, disregards
and exemptions.
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Backdating for discounts, disregards and exemptions
Even if a discount, disregard or exemption wasn’t applied for right away, it
can be backdated to when it should have rst applied. You don’t need to
give a reason why it was not originally applied for. However, you will need to
prove that the criteria for an exemption or discount applied at the time.
Some councils will backdate the discount, disregard or exemption to
the date council tax began (April 1993) or when the person rst became
entitled, whichever is later. However, some councils try to use the
Limitations Act (1980), which restricts backdating to a maximum of six
years from the date of requesting it.
A few councils also try to limit the discount, disregard or exemption to
the date it is requested or to the start of the nancial year in which it is
requested. They are not allowed to do this.
If the council tries to limit the backdating in this way, rst try to resolve
the issue with them. If this doesn’t work, contact the Valuation Tribunal
to appeal (see ‘Other useful organisations’ on page 13). You must do this
within two months of the council’s decision.
Appeals
If an application for a discount, disregard or exemption is refused, and
you are unhappy with the decision, you can make an appeal to your
local authority. If this is refused, you have a further right of appeal to
the Valuation Tribunal in England or Wales. This must be done within two
months of receiving the decision.
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Support with council tax
Each local authority has to run a Council tax support scheme (also
sometimes called a Council tax reduction scheme). This provides support
for people on a low income to pay their council tax. The scheme will vary
from one local authority to another for people of working age.
The nancial support available to help with paying council tax is
‘means-tested’. This means that, your income and savings can affect
your eligibility or the amount you get. It can also depend on a range of
other factors, including:
n which benets the person receives
n the age of the people living in the property
n who lives with them.
Depending on the local authority, people can get up to 100% of their council
tax supported in this way, if their income is low enough. This is whether
they are of state pension age or working age. Many older people, especially
owner-occupiers, don’t claim this support and are missing out on what can
be a large amount of help.
More support may be available if someone receives a disability benet
or carer’s benet. The local council should offer information and advice
about the local council tax support scheme and the availability of
Discretionary housing payments to help people who claim housing benet
or Universal credit.
Whatever local Council tax support scheme is in place, the discounts,
disregards and exemptions mentioned in this factsheet will be available
and are not means-tested.
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Council tax Council tax support and Universal credit
Universal credit replaces many benets for anyone who is below pension
age. If you are part of a couple, and not already getting support with council
tax, you are treated as a working-age couple if one of you is below pension
age. For more information see factsheet 413, Benets for people affected
by dementia.
Council tax support is not part of the Universal credit system. Whether or
not you are entitled to Universal credit or Pension credit, you will still need
to contact your local authority to make a separate claim for support with
council tax. Don’t wait until your Universal credit or Pension credit has
been awarded to do this, because they may not backdate your council
tax support.
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Other useful organisations
entitledto
www.entitledto.co.uk
entitledto offers online benet calculators to help people work out what
they can claim. The website also includes an A–Z of help pages on a wide
variety of topics related to benets.
Land & Property Services (LPS)
0300 200 7801 (rates and valuation helpline)
0300 200 7802 (housing benet and rate relief helpline)
rating@lpsni.gov.uk
valuation@lpsni.org.uk
www.nance-ni.gov.uk/land-property-services-lps
LPS can answer queries about rates in Northern Ireland, how to pay a
rates bill or how to nd out about the capital value of a property in
Northern Ireland.
Local council
www.gov.uk/nd-your-local-council
www.gov.wales/nd-your-local-authority
In England and Wales, your local council can give you information about
council tax rates and how to pay. They can also advise on any discounts,
disregards and exemptions you may be entitled to, and how to apply.
Valuation Tribunal for England
0303 445 8100
appeals@valuationtribunal.gov.uk
www.valuationtribunal.gov.uk
The Valuation Tribunal for England is funded by the government to handle
council tax and rating appeals. It provides a free service and local hearings,
and the members who hear appeals are trained volunteers.
This publication contains information and general advice. It should not be
used as a substitute for personalised advice from a qualied professional.
Alzheimer’s Society does not accept any liability arising from its use. We
strive to ensure that the content is accurate and up to date, but information
can change over time. Please refer to our website for the latest version and
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Factsheet 414LP
Last reviewed: January 2021
Next review due: January 2024
Our information is based on evidence and need, and is regularly updated
using quality-controlled processes. It is reviewed by experts in health and
social care and people affected by dementia.
Reviewed by: Gary Vaux, Head of Money Advice Unit, Hertfordshire County
Council, and Nicki Duckworth, Content and Customer Relations Manager,
entitledto
This factsheet has also been reviewed by people affected by dementia.
To give feedback on this factsheet, or for a list of sources, please email
publications@alzheimers.org.uk
