The 25% Single Person Discount
If only one adult lives in your property, you are entitled to a 25% discount on your council tax bill. This is the most widely applicable discount and is worth an average of around £500 per year. To qualify, you must be the sole adult resident — your property counts as having one adult occupant even if there are children living there. Apply by contacting your council (online or by phone). Some people who share a property with a non-counted person (see below) may also qualify for a 25% discount even though they are not the sole resident.
"If only one adult lives in your property, you are entitled to a 25% discount on your council tax bill"
Full Exemptions — Who Pays Nothing
Certain property types and resident situations are completely exempt from council tax: properties where all residents are full-time students (the property is exempt, not just discounted); properties occupied solely by those who are severely mentally impaired (SMI — a legal definition including conditions such as dementia, stroke, or severe learning disabilities); properties that have been empty for under 6 months after a death (Probate exemption); student halls of residence; properties owned by a charity and unoccupied. Some councils also grant full exemption for properties that are empty and unfurnished for up to 6 months, though many councils now charge a premium on long-term empty properties instead.
Disregarded Persons — People Who Do Not Count
Even if multiple people live in a property, some individuals are "disregarded" for council tax purposes and not counted. If removing these people leaves only one counted adult, a 25% discount applies. Disregarded persons include: full-time students; student nurses; apprentices; youth training trainees; people with severe mental impairment (SMI); people aged 18 or 19 in full-time education; live-in carers who care for someone who is not their spouse, partner, or child under 18; members of religious communities; diplomats and their dependants. Importantly, you must apply for these discounts — they are not automatic.
Council Tax Reduction (CTR)
Council Tax Reduction (formerly Council Tax Benefit) is a means-tested benefit administered by local councils to help those on low incomes pay their council tax. Unlike most benefits, CTR is not a uniform national scheme — each council sets its own rules and the maximum discount available varies. In Scotland and Wales, there are national CTR schemes. In England, the maximum discount can be up to 100% of your bill (for pension-age applicants) or a lower percentage for working-age applicants depending on your council. You must apply to your local council and provide evidence of income, savings, and household composition.
"In Scotland and Wales, there are national CTR schemes"
Disability and Adapted Properties
If someone in your household has a disability and your property has been adapted to meet their needs, you may qualify for a Band Reduction: your property is billed as if it were one band lower. The adaptation must be significant — such as a wheelchair circulation space, an extra room needed due to the disability, or a specially adapted bathroom. Apply by contacting your council with supporting evidence. Separately, those with a severe mental impairment who live alone pay no council tax and the property is fully exempt. Carers providing substantial and regular care (at least 35 hours per week) for someone who is not their spouse may be disregarded, triggering a discount.
Challenging Your Council Tax Band
Council tax bands were set in April 1991 based on estimated property values at that time. Many properties have been in the wrong band for over 30 years — estimates suggest around 400,000 homes in England and Wales may be incorrectly banded. You can challenge your band via the Valuation Office Agency (in England and Wales) or the Scottish Assessors Association (in Scotland). If you are successful, your band is reduced and you receive a refund of overpaid tax back to the date your challenge was received (or earlier if you move into the property). Compare your band with similar neighbouring properties on the VOA's online database — if neighbours with identical homes are in a lower band, yours may be wrong.
Empty Properties and Second Homes
Empty and second homes face higher council tax in many areas. Since April 2024, councils in England can charge up to 100% premium on properties empty for over 1 year (making the bill up to double the standard rate) and up to 100% premium on second homes. Some councils charge even more for properties empty over 5 years. However, if a property is genuinely unoccupied because the owner has moved into residential care, the property may be exempt. If you are struggling with council tax on an empty inherited property, contact the council to explain the situation — most have discretionary hardship powers.
"Empty and second homes face higher council tax in many areas"
Council tax discounts and exemptions are not applied automatically — you must apply to your local council. Councils do not proactively contact residents to tell them they qualify. If you have been eligible for a discount for years and have not claimed it, your council may backdate the discount, but they are not obligated to. Always apply as soon as your circumstances change. Council Tax Reduction in particular must be applied for promptly — councils rarely backdate it beyond the date of application.
Finance Motion — General guidance only.
Not regulated financial advice.