Council Tax Discounts, Exemptions & Special Cases: Complete Guide 2025-26
Most common council tax discounts and exemptions in England, Wales, and Scotland for 2025-26
Most UK households pay full council tax, but millions qualify for discounts or exemptions that reduce bills by 25% to 100%. Councils collected £39.9 billion in 2024-25, yet many eligible households miss out on savings. The system offers automatic discounts based on household composition and means-tested reductions for low-income households.
Who Is Entitled to Exemptions?
Student properties receive 100% exemption when occupied exclusively by full-time students. To qualify, courses must last at least one calendar or academic year, run for at least 24 weeks annually, and involve at least 21 hours per week of study, tuition, or work experience. Student halls are automatically exempt.
Unoccupied properties qualify for exemption in limited circumstances. Properties undergoing major structural repairs may get temporary exemption for up to 12 months. Properties owned by deceased persons can be exempt for up to six months after probate.
Severely mentally impaired residents living alone or only with other disregarded persons receive 100% exemption. This requires a doctor's certificate confirming permanent impairment and receipt of specific benefits including Attendance Allowance, Personal Independence Payment, or Universal Credit with limited capability for work.
Unoccupied properties qualify for exemption in limited circumstances. Properties undergoing major structural repairs may get temporary exemption for up to 12 months. Properties owned by deceased persons can be exempt for up to six months after probate.
Severely mentally impaired residents living alone or only with other disregarded persons receive 100% exemption. This requires a doctor's certificate confirming permanent impairment and receipt of specific benefits including Attendance Allowance, Personal Independence Payment, or Universal Credit with limited capability for work.
What Discounts Are Available?
| Discount Type | Reduction | Who Qualifies | Key Conditions |
|---|---|---|---|
| Single Person Discount | 25% | Sole adult occupant | Other residents must be under 18 or disregarded persons |
| All Disregarded Household | 50% | All residents are disregarded | Includes students, severely mentally impaired persons, care home residents |
| Disabled Band Reduction | One band lower | Household with disabled resident | Property must have extra bathroom/kitchen, wheelchair space, or room for disabled person's needs |
| Second Adult Rebate | Up to 25% | Liable person on low income shares with low-income adults | Second adult must not be liable for council tax |
| Empty Property Discount | Varies by council | Unfurnished properties | Most councils now charge premiums instead; check local rules |
| Annexe Discount | 50% | Annexe occupied by family members | Must be connected to main property |
| Annexe Exemption | 100% | Annexe occupied by dependent relative aged 65+ or disabled | Dependent must live permanently in annexe |
Disregarded persons don't count when calculating liability: full-time students, people under 18, hospital patients, care home residents, prisoners, severely mentally impaired persons, and Ukrainian citizens under Homes for Ukraine. When only disregarded persons occupy a property, a 50% discount applies.
Council Tax Reduction for Low Income Households
Council Tax Reduction (CTR) is a means-tested benefit requiring formal application and income assessment. For working-age households, each council sets its own criteria and most require claimants to pay at least 10-25% of their bill. For pension-age households, national rules apply: savings must be below £16,000 (unless receiving Pension Credit Guarantee).
To apply, contact your local council with proof of income, benefits, savings, and household composition. If awarded, the reduction appears as a credit on your bill. Awards are reviewed annually.
To apply, contact your local council with proof of income, benefits, savings, and household composition. If awarded, the reduction appears as a credit on your bill. Awards are reviewed annually.
Empty Properties and Second Home Premiums
Most councils now charge premiums on empty properties rather than offering discounts.
| Empty Duration | Premium Applied | Total Council Tax |
|---|---|---|
| Less than 1 year | 0% (some councils offer discounts) | 100% |
| 1-5 years empty | Up to 100% premium | Up to 200% |
| 5-10 years empty | Up to 200% premium | Up to 300% |
| 10+ years empty | Up to 300% premium | Up to 400% |
Second homes face similar rules. Most councils charge 100% council tax, though mandatory 50% discounts apply for homes owned by someone required to live elsewhere for work, or for caravan pitches and boat moorings.
How to Apply for Discounts and Reductions
You can fill in a form or apply online directly to your local council website through this link
Automatic discounts (single person, disabled band): Contact your local council's council tax department with evidence of your circumstances. Most provide online forms.
Council Tax Reduction: Apply through your council's benefits team. Submit proof of income, savings, benefit awards, and household details. Processing takes 4-6 weeks.
Student exemption: Obtain a certificate from your university or college confirming full-time status, course duration, and study hours. Submit to your local council.
Empty property discounts: Apply within three months of the property becoming empty with supporting evidence.
If refused, request written explanation and appeal to an independent valuation tribunal within two months.
Automatic discounts (single person, disabled band): Contact your local council's council tax department with evidence of your circumstances. Most provide online forms.
Council Tax Reduction: Apply through your council's benefits team. Submit proof of income, savings, benefit awards, and household details. Processing takes 4-6 weeks.
Student exemption: Obtain a certificate from your university or college confirming full-time status, course duration, and study hours. Submit to your local council.
Empty property discounts: Apply within three months of the property becoming empty with supporting evidence.
If refused, request written explanation and appeal to an independent valuation tribunal within two months.
Frequently Asked Questions
Do full-time students pay council tax?
Full-time students are exempt from council tax if all occupants are students. If students share with non-students, the property isn't exempt but students are 'disregarded' when calculating the bill, potentially giving non-students a 25% discount. To qualify, courses must run at least 24 weeks per year with 21+ hours weekly study.
How much is the single person council tax discount?
Single person households receive a 25% discount on council tax. This applies when you're the only adult in the property, or when other residents are 'disregarded persons' such as full-time students or those under 18. The discount is automatic but you must apply to your local council.
Can I get council tax reduction if I'm on Universal Credit?
Yes, Universal Credit claimants can apply for Council Tax Reduction (CTR). Each council operates its own scheme with different rules and reduction levels. Most working-age households must pay at least 10-25% of their bill even with CTR. Apply directly to your local council with proof of Universal Credit and income.
Do I have to pay council tax on an empty property?
Most councils charge full council tax on empty properties plus premiums after one year. Properties empty 1-5 years face up to 100% premium (200% total charge). Long-term empty properties over 10 years can incur 300% premiums (400% total). Limited exemptions exist for properties undergoing major repairs or awaiting probate.
What is the disabled band reduction for council tax?
If a disabled person lives in the property and needs specific adaptations, you pay council tax at one band lower. For example, Band D properties pay Band C rates. Properties must have an extra bathroom/kitchen, wheelchair space, or room specifically for the disabled person's needs. Band A properties receive a 17% reduction instead.