More council tax information

Part 2: Discounts and reductions

Part 3: Weekly income and capital

Part 4: Crucial calculations

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Discounts on council tax - part two

The detailed part of this guide will help you work out how much you may get off your council tax. You will need a calculator.

There are two ways to get money off your council tax.

· Discounts and reductions because of your circumstances
· Discounts because of your income – called council tax benefit

1. Discounts and Reductions

If you live alone you can claim a discount of 25 per cent off your council tax. Even if you don’t live completely alone you may get the discount because some people are invisible when it comes to council tax. The proper name is ‘disregarded persons’ and they include

· Anyone at school (or just left school)
· Full time students (including student nurses)
· Apprentices and youth training trainees
· Some carers (but not if they look after their spouse or partner or their child under 18)
· People who are severely mentally impaired

There are other categories of invisibles including diplomats, foreign soldiers, prisoners and so on but they are not likely to be living with you.

If you live alone – or the only other people in your home are invisibles – then your council tax is cut by 25%. This reduction can be backdated as far back as you can prove you lived there alone.

Disabled reduction. If you, or someone who lives with you, is disabled you may get a reduction of about 17% off your council tax. To qualify you or someone who lives in your home has to be permanently and substantially disabled. This term is not defined. In addition your home has to have at least one of these
· An extra bathroom or kitchen
· Any other room (apart from a toilet, bathroom or kitchen) mainly used by the disabled person
· Enough floor space to allow a wheel-chair to be used indoors

If you qualify, your council tax will be reduced by moving the value of the property down one band. So a band C property is taxed as if it was in band B. If your property is already in band A, your council tax is reduced by one-sixth.

You apply for these reductions from the local council which sends you the council tax bill. They can be backdated so make sure the council knows how long they have applied.

2. Council Tax Benefit

To see if you can get Council Tax Benefit you need to work out three figures – your weekly income, your net weekly council tax, and what is called your ‘personal allowance’.

But remember if you get the guarantee element of Pension Credit you will get all your council tax paid regardless of your income or savings. So skip the detail and apply now!

Your personal allowance
Your personal allowance (which is sometimes still called your ‘applicable amount’) varies depending on your age and circumstances. The table shows them all. If you are a couple, use the age of the older partner.

To count as severely disabled you must get Attendance Allowance or Disability Living Allowance care component at the highest or middle rate. If you live as a couple usually you both need to get one of these benefits. You may not qualify as ‘disabled’ if someone else lives in your home or if someone gets carer’s allowance for looking after you.

Discounts on Council Tax - part three

This article was created: 15 November 2006.
This article was last edited: 19 March 2007.

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