Council Tax is one of those bills you can’t exactly avoid – unless you’re camping in the Lake District permanently – but here’s the thing: most people are overpaying because they don’t know the full list of discounts, exemptions, and hacks available.

This cheat sheet is your full menu of options – from official council discounts to sneaky (legal) loopholes – to help you cut your bill by 25%, 50%, or even 100%.

Council Tax Discounts

1. Single Person Discount – 25% Off

Who it’s for: Anyone living alone (or the only adult in the property).

How it works: Council Tax assumes two adults per household. If you’re the only adult, you’re entitled to 25% off automatically.

Key points:

• Children under 18 don’t count as adults.

• Full-time students also don’t count for this purpose.

• You need to apply; it’s not usually given automatically.

• If your partner works away most of the year (Armed Forces, offshore), you may still qualify.

Pro tip: If someone moves out, tell your council immediately. They’ll often backdate the discount to when they left.

2. Student Exemption – Up to 100% Off

Who it’s for: Households where everyone is a full-time student.

Rules:

• You must be on a full-time course (usually at least 21 hours/week for 24 weeks a year).

• If one person isn’t a student, the house won’t be fully exempt – but the students still don’t count toward the bill.

Examples:

• All students in the house → No Council Tax at all.

• 2 students + 1 working adult → Working adult gets 25% single person discount.

Pro tip: Keep your student certificate from uni/college – councils always ask for proof.

3. Severe Mental Impairment (SMI) Exemption – Up to 100% Off

Who it’s for: People diagnosed with conditions like dementia, severe learning difficulties, or other serious mental health impairments.

Rules:

• Must be medically certified by a doctor.

• Must receive qualifying benefits (e.g., Attendance Allowance, Disability Living Allowance, PIP).

Savings:

• If you live alone → 100% off.

• If you live with one other adult who’s not SMI → They get 25% off.

Pro tip: This can be backdated for years if you’ve qualified but never claimed.

4. Disability Reduction – Pay the Band Below

Who it’s for: Homes adapted for someone with a disability.

What counts:

• Extra bathroom or kitchen for disabled use.

• Room used for medical equipment.

• Wider doorways or wheelchair access adaptations.

Savings: If you qualify, you pay the Council Tax for the band below yours. (Band A is the lowest, so you can’t go lower than that.)

Pro tip: Even small adaptations like stairlifts can count – councils don’t always advertise this.

5. Empty & Unoccupied Property Discounts

Who it’s for: Owners with a vacant property.

Rules:

• Some councils offer reduced rates or exemptions for the first 1–6 months if a property is unfurnished.

• Properties undergoing major repair work may qualify for 100% relief for a set period.

Watch out: After certain periods, councils can actually charge extra for empty homes.

Pro tip: Always notify your council when a property is empty – even a short gap between tenants.

6. Carer Discount – 25% or More Off

Who it’s for: Live-in carers who look after someone for at least 35 hours a week.

Conditions:

• You must live with the person you care for.

• They must not be your spouse, partner, or child under 18.

• The cared-for person must get qualifying benefits.

Savings: If you’re the second adult in the house but a full-time carer, you don’t count – meaning the other person may get the single person discount.

7. Second Adult Rebate – Up to 25% Off

Who it’s for: People who don’t live alone but share with another adult on a low income.

Example: You work full-time but your adult son lives with you and is unemployed – you may get a reduction even though you’re not a single occupant.

Key points:

• Based on the second adult’s income, not yours.

• Can apply even if you don’t qualify for Council Tax Support.

8. Low Income & Council Tax Support – Variable Discount

Who it’s for: Anyone on a low income, whether working or on benefits.

Rules:

• Most councils run Council Tax Reduction (CTR) schemes.

• You don’t have to be unemployed to qualify.

• The discount amount depends on your earnings, savings, and household makeup.

Pro tip: Apply even if you think you’re over the income threshold – the calculations can surprise you.

9. Banding Challenges – Pay Less by Being in the Right Band

Who it’s for: Anyone whose property may be in the wrong Council Tax band.

How to check:

1. Look up your band on the gov.uk site.

2. Compare with similar properties nearby.

3. If similar homes have lower bands, challenge yours.

Warning: Bands can go up or down, so be sure before challenging.

Pro tip: This is especially worth checking if your home hasn’t been revalued since 1991 (in England & Scotland).

10. Armed Forces and Job-Related Discounts

• Serving military personnel posted away from home: May be exempt from paying if accommodation is provided elsewhere.

• Job-related accommodation: If your main residence is provided for work (e.g., clergy, live-in caretaker), you may get a discount on your other home.

11. Annex Discounts – 50% Off

Who it’s for: “Granny flats” or annexes lived in by family.

Rules:

• If the annexe is occupied by a family member, you can get 50% off the annexe’s Council Tax.

• If it’s empty but used by the main house, it may be exempt.

12. Backdating Claims – Get Refunds

Why it’s gold: Many discounts and exemptions can be backdated for years – meaning you can claim thousands in refunds.

Examples:

• SMI exemptions can often be backdated to the diagnosis date.

• Single Person Discounts can be backdated to when you started living alone.

Pro tip: Always ask for maximum backdating when applying.

13. Special Cases – Little-Known Savings

• Prisoners: Properties where the only adult is in prison are exempt.

• Under 18s: Anyone under 18 is invisible for Council Tax purposes.

• Diplomats: Exempt under certain conditions.

• Religious communities: Some members of religious orders can be exempt.

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Council Tax Discount Matrix (At a Glance)

Advanced Money-Saving Tips

1. Move-in and Move-out Dates Matter – Even moving mid-month can reduce your bill for that month.

2. Claim When Circumstances Change – New job, someone moves out, or you start studying – tell the council immediately.

3. Check Every Year – Council Tax rules can change annually.

4. Stack Discounts – You can have more than one reason to reduce your bill (e.g., single person + low income).

5. Switch to Direct Debit – Some councils give a small discount for paying this way.

6. Pay Over 12 Months Instead of 10 – Not a discount, but spreads the cost.

7. Ask About Local Hardship Funds – Some councils have emergency funds for residents struggling to pay.

How to Apply

1. Go to your local council’s website (search “[Your Council] Council Tax discounts”).

2. Download or complete the online form.

3. Provide proof (ID, income, medical certificates, tenancy agreements).

4. Ask about backdating.

5. Keep confirmation emails or letters.

Common Mistakes That Cost You Money

• Not updating your details when someone moves out/in.

• Assuming you’re not eligible without checking.

• Missing backdate opportunities.

• Forgetting students don’t count when calculating adult occupants.

• Not checking property banding after renovations.

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Final Word

Think of Council Tax as a “charge until challenged” bill. Councils won’t usually knock on your door to give you money back – you have to ask.

The beauty is, once you’ve claimed the right discount, you keep saving every single year, and in some cases, you get a nice fat refund for years gone by.