Properties in England nonetheless taxed on valuations relationship again to April 1991
Martin Lewis offers recommendation on council tax SMI exemptions
Onerous-pressed households are bracing for one more council tax squeeze – with most councils in England pushing payments up by the utmost 5% and a few mountain climbing them by way more.
For a lot of households, it means a whole lot of kilos extra a yr disappearing from stretched budgets.
But consultants warn that giant numbers of households could possibly be paying greater than they need to – both as a result of their house is within the incorrect band or as a result of they’re lacking out on reductions and exemptions.
With properties in England nonetheless taxed on valuations relationship again to April 1991, and no nationwide revaluation since, the scope for error is appreciable.
The result’s {that a} rising variety of owners questioning whether or not the system is honest – and whether or not their invoice might be reduce.
In England, houses are nonetheless slotted into one in all eight bands, A to H, primarily based on what they had been value in April 1991.
Wales makes use of April 2003 values and has 9 bands, whereas Scotland has eight with completely different thresholds. Northern Eire operates a separate home charges system.
Property costs have soared because the early Nineties, however the underlying valuations have by no means been up to date in England. That creates anomalies – and alternatives.
MoneySavingExpert has discovered that one in 5 council web sites in England and Wales offered details about the live-in carer low cost in a manner suggesting few individuals had been eligible.
Pensioners don’t routinely qualify for a reduction. However these entitled to the assured factor of pension credit score can obtain as much as a 100% discount.
Different low-income pensioners – together with these receiving the financial savings factor of pension credit score or with restricted revenue and fewer than £16,000 in financial savings – might also qualify. Pensioners dwelling alone are entitled to the 25% single particular person low cost.
The 25% low cost many overlook
The most typical saving is the 25% single particular person low cost. Anybody dwelling alone qualifies. Nevertheless, you may as well declare if different occupants are “disregarded” for council tax functions.
Kids below 18 don’t depend – that means single mother and father can qualify.
Full-time college students are additionally disregarded. If a property is occupied solely by full-time college students, no council tax is payable. Scholar halls are routinely exempt.
These classed as severely mentally impaired – together with individuals with Alzheimer’s, Parkinson’s, profound studying difficulties or severe mind accidents – might also be exempt, topic to medical certification and qualifying advantages.
Households which have tailored their property for a disabled resident might qualify for the disabled band discount scheme.
If authorised, the invoice is lowered to the following lowest band. A Band D residence would pay Band C charges. Properties already in Band A obtain a 17% discount.
Associated articles
Second houses, annexes and empty properties
Since April 2025, councils in England have been capable of cost as much as double the conventional fee on second houses. Whereas some restricted reductions should still apply, many homeowners face sharply increased payments.
Self-contained annexes occupied by dependent kinfolk – similar to aged or disabled members of the family – might be exempt. The place an annexe is occupied by a non-dependent relative and council tax is paid on the primary residence, a 50% low cost might apply.
Empty houses can typically qualify for momentary exemptions. Properties left vacant after probate, houses the place the proprietor has moved into hospital or care, or these present process main structural work could also be eligible for reduction – however owners should apply and supply supporting proof.
With council tax rising by as much as 5% throughout a lot of England – and significantly extra in some areas – the system might really feel unforgiving.
However from checking your band to claiming neglected reductions, the potential financial savings could possibly be important for households ready to problem the invoice touchdown on the doormat.
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