Council Tax Exemptions UK 2025: Complete Guide
Find out who is exempt from council tax, which properties qualify for a full exemption, who gets a 25% or 50% discount, and how to apply for Council Tax Reduction.
Overview: Exemptions, Discounts and Reduction
Council tax in England is calculated assuming at least two adults occupy a property. The system offers three tiers of relief:
These three types of relief can interact. For example, a low-income student who is already exempt from council tax under a full exemption would not need to claim CTR as well — the exemption provides greater relief. However, a student living with a working partner would already have the student disregarded, making the partner eligible for the 25% single person discount, and if the partner is on a low income, CTR may reduce the bill further still.
Full Exemptions: Classes B to W
The Local Government Finance Act 1992 and the Council Tax (Exempt Dwellings) Order 1992 set out the classes of property that are fully exempt from council tax. Here is a complete reference guide:
| Class | Description | Duration |
|---|---|---|
| B | Property owned by a charity, unoccupied and was last occupied for charity purposes | Up to 6 months |
| D | Property left empty because the occupant is detained in prison (not for non-payment of a fine) | Duration of detention |
| E | Property left empty because the previous occupant has moved permanently into a care home, nursing home, or hospital | Indefinite |
| F | Property of a deceased person where probate has not yet been granted, or up to 6 months after grant of probate | Up to 6 months post-probate |
| G | Occupation of the property is prohibited by law | Duration of prohibition |
| H | Property held for a minister of religion to perform their duties | Whilst unoccupied for this purpose |
| I | Property left empty because the occupant has gone elsewhere to receive personal care (e.g. left to be cared for elsewhere) | Duration of absence |
| J | Property left empty because the occupant has gone elsewhere to provide personal care to another person | Duration of absence |
| K | Property left empty by a student (owns the property but is absent studying) | Duration of study |
| L | Property repossessed by a mortgage lender | Until sold |
| M | Student halls of residence | Indefinite (while used as halls) |
| N | Properties occupied entirely by full-time students | Duration of student status |
| O | UK armed forces barracks and accommodation provided for members of the armed forces | Indefinite |
| P | Property that is solely the residence of a person or people who are visiting forces | Duration of occupation |
| Q | Property left empty because the liable person is a trustee in bankruptcy | Duration of bankruptcy proceedings |
| R | Empty caravan pitch or boat mooring | Indefinite while empty |
| S | Occupied only by people under 18 years old | Duration of all occupants being under 18 |
| T | Unoccupied annexe that cannot be let separately under planning restrictions | Whilst unoccupied |
| U | Property occupied only by one or more severely mentally impaired people | Duration of all occupants being SMI |
| V | Property occupied mainly by a diplomat or their household (who have diplomatic immunity) | Duration of occupation |
| W | Annexe forming part of a larger property, occupied by a dependent relative of the main household (elderly, severely mentally impaired, or substantially and permanently disabled) | Duration of occupation |
Who Is Disregarded for Council Tax?
Certain people are “disregarded” for council tax purposes, meaning they are not counted as residents when calculating how many adults live at a property. If enough people are disregarded, it can trigger a discount or full exemption. People who are disregarded include:
- Full-time students (on qualifying courses)
- Student nurses
- Apprentices and Youth Training trainees
- 18 and 19 year olds who have just left school and are enrolled in full-time non-advanced education
- Severely mentally impaired (SMI) people
- Hospital patients in long-term residential care
- Prison inmates (not detained for fine non-payment)
- Qualifying carers (35+ hours per week care of a qualifying person, not a spouse/partner or own child under 18)
- Members of religious communities (monks, nuns) who have no income or capital
- Foreign language assistants on a recognised exchange programme
- Diplomats and their dependants
- Members of visiting armed forces and their dependants
- School leavers aged 18–20 between finishing school and starting higher education
25% Single Person Discount
The most widely claimed council tax discount is the 25% single person discount. It applies whenever there is only one non-disregarded adult living in a property. This means:
- A person living completely alone qualifies
- A person living with someone who is disregarded (e.g. a full-time student) qualifies
- A person living with only under-18s qualifies
The 25% discount amounts to a saving of approximately £542/year on the average England Band D bill of £2,171. You apply directly to your local council; most now have online application forms. The discount applies from when you start living alone (or your previous partner/flatmate leaves), and you should notify the council promptly when your circumstances change.
50% Discount — All Occupants Disregarded
If all of the adults living in a property are disregarded (but the property does not qualify for a full exemption), the household receives a 50% discount. This is most commonly encountered when a non-student adult lives with multiple full-time students but is not themselves a student, and both the non-student and students are all disregarded for different reasons — in practice, this scenario more commonly results in the 25% discount (if only one non-student is present).
The 50% discount specifically arises when every occupant is disregarded: for example, a household consisting of one SMI person and one student — both are disregarded, so the 50% discount applies (rather than the Class U or Class N full exemption, which would only apply if all occupants fell into a single exempt category).
Student Exemptions in Detail
Students are one of the most common groups affected by council tax exemptions. Here is a detailed breakdown of the rules:
Who qualifies as a “full-time student” for council tax? You must be enrolled on a qualifying course that:
- Is at a recognised educational establishment (university, college etc.)
- Lasts at least one academic year (or calendar year)
- Requires at least 21 hours of study per week during term time, OR is a part-time course that still qualifies under specific HMRC definitions
What evidence is required? Your university or college will issue a council tax exemption certificate at the start of each academic year. You present this to your local council to have the disregard recorded. Certificates typically cover the academic year from September to June; summer periods when you are still enrolled usually count, but check with your institution.
Student halls of residence (Class M): If you live in halls provided by a university or college, the entire building is exempt under Class M. You do not need to apply individually — the institution claims the exemption on behalf of all residents.
Private rented accommodation (Class N): If you rent privately and live with other students, the property can be claimed as Class N exempt (all occupants are full-time students). All occupants must be full-time students; if even one is not, the property is not Class N exempt — but the non-student may qualify for the 25% discount if only one such person remains.
Postgraduate and PhD students: Are treated the same as undergraduates for council tax purposes, provided they meet the qualifying course requirements.
Overseas students: International students on qualifying full-time courses are disregarded in exactly the same way as UK students.
Disabled Band Reduction
If your home has been adapted to meet the needs of a resident with a disability, you may qualify for the Disabled Band Reduction Scheme. This reduces your council tax bill by one band. So if you are in Band D, you pay Band C rates; if in Band C, you pay Band B rates; and so on.
Who qualifies? The property must have one of the following specifically for the disabled person’s use:
- A room (other than a bathroom, kitchen or toilet) that is predominantly used by and needed by the disabled person
- An extra bathroom or kitchen needed by the disabled person
- Sufficient floor space for a wheelchair used indoors
The disabled person does not need to be the council tax payer. Any permanent resident with a disability qualifies. You apply to your local council, which may send an assessor to inspect the property. There is no income test for the disabled band reduction.
For properties already in Band A, a fixed reduction of one-ninth of the Band D charge applies instead of a further band reduction.
Council Tax Reduction (CTR)
Council Tax Reduction replaced Council Tax Benefit in April 2013. Unlike the old benefit, which was nationally administered, CTR is now run by each individual local council for working-age claimants (those below State Pension age). Councils have considerable freedom to design their own schemes, subject to some protections. The result is that CTR support varies significantly by council area.
Pensioners (State Pension age and above) are protected by a nationally set minimum scheme that mirrors the old Council Tax Benefit rules. Pensioners can generally receive up to 100% CTR.
Working-age claimants: The amount of CTR you receive depends on:
- Your income (earned and unearned)
- Your savings and capital (many schemes reduce or eliminate CTR above £6,000 in capital; some councils use higher thresholds)
- The number and ages of people in your household
- Whether any household members receive qualifying benefits (Universal Credit, income-related ESA, etc.)
- Your local council’s specific scheme rules
Many councils have moved to income-banded CTR schemes where the reduction is a set percentage based on income band rather than a precise calculation. Some councils cap CTR at 80% of the council tax bill for working-age claimants, meaning even those with no income pay at least 20% of their bill.
How to Apply for an Exemption or Discount
Applying for council tax exemptions, discounts or CTR is done through your local council, not HMRC or central government. Each council has its own process, but the general steps are:
- Identify which exemption, discount or reduction you believe you are entitled to (use this guide and your council’s website)
- Gather supporting evidence (student certificate, care home letter, proof of SMI, etc.)
- Submit your application online, by post or in person (most councils now have online forms)
- The council will confirm the decision in writing, usually within 2–4 weeks
- Your council tax bill will be recalculated and a revised bill issued
Backdating Your Claim
There is no statutory time limit in legislation that prevents councils from backdating exemptions and discounts. However, in practice, councils vary widely in their backdating policies. Some will backdate to the date circumstances began with no time limit; others may have internal policies limiting backdating to one or two years.
Always request backdating explicitly in writing when you submit a late application, and provide as much evidence as possible of when the qualifying circumstances began. If you believe you were entitled to an exemption and were not informed by the council, this can strengthen a backdating request.
Challenging a Decision: VOA vs Council
It is important to understand the distinction between two separate processes:
Empty Properties and Second Homes
Councils have increasing powers to charge council tax premiums on empty and second properties:
- Empty and unfurnished: Up to 6 months exempt in some cases (no discount applies by default in many areas); after that, 100% council tax applies. Councils can charge a 100% premium (double council tax) on properties empty for over 1 year, a 200% premium on properties empty for over 5 years, and a 300% premium on properties empty for over 10 years (from April 2024).
- Second homes (furnished but unoccupied as main residence): Councils can charge up to a 100% premium from April 2025. Previously this was discretionary; it is now more widespread.
- Properties requiring major repair or structural alteration: May be exempt for up to 12 months.
Frequently Asked Questions
Full-time students are ‘disregarded’ for council tax purposes, meaning they do not count as residents. If all occupants of a property are full-time students, the property is fully exempt from council tax (Class N for private rented; Class M for student halls). If some occupants are students and others are not, the non-student residents may qualify for the 25% single person discount if only one non-student remains.
If you are the only non-disregarded adult living in your home, you are entitled to a 25% discount on your council tax bill regardless of income. You apply to your local council. The discount also applies if you live with others who are all ‘disregarded’ (such as students, SMI people, or carers). You must notify the council promptly if circumstances change.
Council Tax Reduction (CTR) is a means-tested scheme that can reduce your council tax bill by up to 100% if you are on a low income. It replaced Council Tax Benefit in April 2013 and is now run by local councils for working-age people, each with their own scheme. Unlike exemptions (which are set nationally and do not depend on income), CTR depends on your income, savings, household composition and your council’s rules. Pensioners have a nationally set minimum CTR.
Carers may be ‘disregarded’ for council tax if they provide at least 35 hours per week of care to someone receiving qualifying disability benefits (higher/middle rate DLA care component, standard/enhanced PIP daily living, or Attendance Allowance). The carer must not be caring for a spouse, partner, or their own child under 18. If all occupants are disregarded, a 50% discount applies.
If your home has been adapted for a disabled resident (wheelchair space, extra bathroom/kitchen, or a special room for treatment), your council tax is calculated as if your property were one band lower. So Band D pays Band C rates, Band B pays Band A rates, and Band A gets a fixed reduction of one-ninth of Band D. There is no income test. Apply to your local council.
If the council refuses your exemption or discount claim, first write a formal appeal to the council’s council tax department. If unresolved, appeal to the Valuation Tribunal for England (VTE) — it is free and independent. Note that appealing your council tax band (the property valuation) is separate and goes to the Valuation Office Agency, not the council.
There is no statutory time limit preventing councils from backdating exemptions and discounts, but councils have their own policies. Many will backdate to when the qualifying circumstances began if you can provide adequate evidence. Apply as soon as you qualify and request backdating in writing, explaining when and why the qualifying circumstances started.