How to get a council tax reduction or refund

When are council tax bills reduced?

You may qualify for a council tax reduction if you are living on your own, with students, providing care or living with people in specific circumstances.

Indeed, you might be surprised by the number of situations that qualify for a reduction, from single-person discounts when you don't actually live alone, to the disabled band reduction scheme.

Similarly, sometimes you might receive a council tax bill that you don't believe is fair or accurate. If this is the case, you might be able to appeal it and get a refund.

In this guide, we outline all of the discounts available, exemptions where you might not have to pay any council tax at all, and how to apply for a refund if you think you've overpaid – but do also check your council's website for details.

Who is exempt from council tax?

All properties are placed in a council tax band, but in some cases, residents are exempt from paying the bill. This generally depends on who lives in the property or how it's being used.

Properties are exempt if all the people living in them are:

• only full-time students
• only people aged under 18
• members of the armed forces in armed forces accommodation
• people who have moved into a care home or hospital
• people living with somebody else to receive care for reasons of old age, disability, illness, past or present alcohol or drug dependence or past or present mental disorder
• people with severe mental impairment
• diplomats, as long as they are not a British citizen or have a main residence in the UK
• people detained in prison

If you believe you qualify for an exemption, you should get in touch with your local council and make your case.

Who can claim a council tax discount?

Council tax bills assume that two adults occupy the property as their main home. If only one resident lives there, the bill can normally be reduced by 25% - known as the single-person discount.

Some people are not counted as a second resident for council tax bills, even if they live in the property. These are known as 'disregarded persons'.

So you may qualify for a 25% single-person discount if you share your home with people who are considered 'disregarded'.

If everyone in the home is 'disregarded', you'll usually get a 50% discount (unless every resident is exempt, in which case there'll be no bill to pay).

Disregarded people for council tax include:

• an apprentice studying for a recognised qualification
• a young person (under 25) in approved training
• an 18 or 19-year-old in full-time education
• a student nurse
• people staying in hostels or night shelters
• carers (providing at least 35 hours' care a week) if they are not the main resident's husband, wife or civil partner
• monks and nuns
• members of visiting forces
• a full-time student (attending university or college, or under the age of 20 and studying A levels or their equivalent)
• resident hospital patients
• people living in care homes
• people who are severely mentally impaired (this can include people with dementia)
• prisoners
• individuals with diplomatic privileges and immunities.

If you believe you qualify for a reduction or an exemption, you should write to your local council and make your case.

• Find out more: paying council tax - how to change your details

Council tax reduction for low-income earners

If you're on a low income, you may be eligible for a council tax reduction of up to 100%.

Each local authority has different criteria for who is eligible to claim a council tax reduction. The size of the reduction depends on your income, your savings and whether you live alone or with other adults in the same property.

To find out whether you qualify, contact your local authority.

Hardship relief

If you're experiencing 'exceptional' hardship for reasons beyond your control (for instance, losing your job), you may qualify for hardship relief to temporarily reduce your council tax bill.

You may need to provide evidence of things like:

• your income being less than your outgoings
• having no savings
• personal circumstances preventing you from paying
• applications to other help such as benefits and reductions
• that you don't have access to other assets that could be used to pay your bill.

To find out if you're eligible, you'll need to contact your local council. The discount is granted at their discretion.

Second adult rebate

If you don't qualify for council tax reduction, but you share your home with a second adult who does (and is not your spouse or civil partner), you may be able to claim a second adult rebate.

If you qualify for both council tax reduction and a second adult rebate, your local authority should award you the higher amount.

You can apply for council tax reduction or a second adult rebate on the gov.uk website.

Council tax support for pensioners

All local councils have to provide a certain level of support for pensioners who have reached the state pension age.

Those who receive the guarantee credit part of pension credit may not have to pay any council tax. Meanwhile, those who receive the savings part of pension credit - or have a low income and less than £16,000 in savings - may receive a council tax discount.

Contact your local council to find out what they offer in your area.

Disabled band reduction scheme

Your council tax bill may be reduced if your home has features that are essential for the well-being of a person with a disability who lives there. These may include an additional bathroom or specially adapted kitchen, or extra space inside the property for using a wheelchair.

Households that are eligible get a one-band reduction in their council tax bill. The property must be home to at least one disabled person - either an adult or a child.

To apply for a reduction under the scheme, write to your council and ask for an application form.

• Find out more: council tax bands

Council tax on empty properties

Councils can give a discount of up to 50% for homes that are empty and unfurnished.

However, councils in England and Wales also have the power to charge a premium of up to 100% extra on top of the normal council tax if a home has been empty for more than two years.

Since April 2020, this premium can be increased to 200% in England if the property has been empty for five years, and since April 2021 you can be charged up to 300% if the property has been empty for more than 10 years.

In Wales, the second home premium was increased from 100% to 300% from April 2023.

In Scotland, you can be charged a 100% premium if your home is unoccupied for 12 months.

The time frames apply to the property, not each owner - so before you buy somewhere new, you should check how long the property has been empty if you're not planning on moving in straight away.

Exempt empty properties

Some homes are exempt from council tax for as long as they stay empty, including those that are:

• undergoing major repair work to render the property habitable, or structural alteration (exemption ends after 12 months)
• part of the estate of someone who has died (for up to six months after the grant of probate)
• repossessed, taken into possession by a mortgage lender or owned by a liable person who is a trustee in bankruptcy.

For a property to be exempt for any of these reasons, you'll need to ask the Valuation Office Agency (VOA) to remove it from the council tax valuation list.

Second-home council tax discount

Councils may give discounts for furnished second homes or holiday homes. The discount will vary, at your council's discretion.

Most holiday-home owners get a 10% discount on council tax.

Some people, such as tenant publicans or members of the clergy who are provided with accommodation as part of their work, may qualify for a 50% discount on their second home.

If your second home is empty because you were required to move elsewhere by your employer, a 50% discount should be applied. You still will need to pay full council tax on the property that is your main home and apply for the discount in the local authority of your second home.

Annexe discounts and exemptions

If you have an annexe built on your land, it will generally be subject to a separate council tax bill.

However, if you live in an annexe as your main home, and the person who pays council tax on the main property is a relative, you may be able to get a 50% discount on the annexe council tax.

There'll be no council tax if the person living in the annexe is classed as a dependent of the person who owns the main property. Dependents are classed as being:

• age 65 or over
• substantially or permanently disabled
• severely mentally impaired.

If someone under the age of 18, or someone in full-time education, lives in the annexe, they'll also be exempt.

Where an annexe is empty and can't be let separately due to planning permission, it may also qualify for a council tax reduction.

Council tax reductions for Ukrainian nationals

People from Ukraine with a Homes for Ukraine (HFU) visa are also able to apply for a Council tax reductions, and anyone sponsoring a Ukrainian national retain their current council tax exemptions or discounts, provided they are staying with them.

In the event a sponsor is providing separate accommodation, then people from Ukraine will have to pay the council tax on that property themselves - however, if all the occupants have an HFU visas, there's a 50% discount available. There is additional support available in some circumstances - sponsors will need to contact the local council.

How do I apply for a council tax discount?

Councils may not know about your right to a discount until you tell them.

If you think you are eligible for a single-person discount or an exemption, write to your council when you receive a council tax bill.

Your council will ask you to provide supporting evidence. It must then inform you whether it's decided to grant you a reduction within two months.

If you disagree with the council's verdict you can appeal it.

How to make a council tax appeal

If you think your bill is incorrect, for example, if you have not been given a discount that should apply, you can lodge an appeal.

You can also make an appeal, if you think your property has been placed in the wrong council tax band or if you think you've been unfairly issued with a penalty notice.

Step 1: Check your council tax bill

Your council should send your bill for the year in writing through the post.

You can check it by entering your postcode into our council tax calculator. This tool can also help you see what's being paid by those in other postcodes and different council tax bands.

Step 2: Write to your local council

If you're sure you want to appeal your bill, you should write to your local council to explain why you think it's incorrect. This is called the 'representations stage'.

You should try to include as much detail as possible, and any supporting evidence that you think will help your case. Your council usually has two months to respond.

Step 3: Appeal to the valuation tribunal service

If your application is rejected, or you aren't satisfied with your council's response, you can apply in writing to the valuation tribunal service to request a review - you can visit its website here.

After reviewing the information from both you and your local council, the valuation tribunal service may ask you to appear at a court hearing to settle the case. There is no charge for this unless you decide to employ a solicitor or legal representative.

The tribunal shouldn't take any longer than a day.

How to reclaim overpaid council tax

There are several reasons why you might have overpaid your council tax. 

For example, you may have paid tax for the year but moved out before the year's end, or you may have forgotten to cancel a direct debit or standing order after you've moved out of the property.

Some councils will give an automatic refund before closing your account, but not all of them.

You may also be due a refund if your property has been moved to a lower council tax band after you've moved out of it.

To find out if you're owed money, see if the local council in question has a council tax refund form on its website. You may need to provide your old council tax reference number, which should be on any old bills or email correspondence. 

If there's no online form, or you don't have your council tax reference number, try calling or email the council instead. You'll need to give your name, old address and may be asked some security questions to check your identity.