Council tax could be slashed by ‘up to 100 percent’ – eligibility and 5 key factors

Exactly how much council tax you owe is largely dependent on the tax band of your property

Many people across England, Scotland and Wales may be eligible for a Council Tax Reduction (CTR) of up to 100%, provided they meet certain criteria. While the specific discount will vary between councils, several factors are usually considered.

According to the UK Government, you may apply for the reduction whether you own or rent your home, and whether you are unemployed or employed. Councils will then consider your personal circumstances, including how much you earn, the number of children, your residency status and any benefits received, alongside the following factors:

• Where you live – each council runs its own scheme
• Your circumstances (for example, income, number of children, benefits, residency status)
• Your household income – this includes savings, pensions and your partner’s income
• If your children live with you
• If other adults live with you

Official advice from GOV.UK explains: “You’ll get a discount on your bill if you’re eligible.” It also adds: “There’s a different scheme in Northern Ireland. You could be eligible if you’re on a low income or claim benefits. Your bill could be reduced by up to 100%. You can apply if you own your home, rent, are unemployed or working.”

Exactly how much Council Tax you may pay is largely dependent on the tax band of your property. This value is based on the price the property would have sold for on the open market on April 1, 1991, in England and Scotland, and on April 1, 2003, in Wales.

Excluding any discounts, the following bands apply in England:

Band value on April 1, 1991

• A: up to £40,000
• B: £40,001 to £52,000
• C: £52,001 to £68,000
• D: £68,001 to £88,000
• E: £88,001 to £120,000
• F: £120,001 to £160,000
• G: £160,001 to £320,000
• H: more than £320,000

And for Wales, this criterion applies:

Band value on April 1, 2003

• A: up to £44,000
• B: £44,001 to £65,000
• C: £65,001 to £91,000
• D: £91,001 to £123,000
• E: £123,001 to £162,000
• F: £162,001 to £223,000
• G: £223,001 to £324,000
• H: £324,001 to £424,000
• I: more than £424,000

While some people may receive a discount on their bill automatically, others may need to contact their council to confirm it. You can verify your eligibility for CTR using the Government’s postcode searcher tool available here.

Further guidance from Citizens Advice adds: “If you’re the only adult in your home, you’ll get a 25% discount on your council tax bill. When working out how many people live in a property, some people aren’t counted – they’re called ‘disregarded people’.

“If everyone who lives in the property is disregarded there’s still a council tax bill, but it will have a 50% discount. If everyone in your home is a student or severely mentally impaired, you won’t pay any council tax.

“If you’re entitled to a discount because someone has moved out, tell the council. You’re entitled to the discount from when the person moved out, even if you told the council later.”

For more information, visit GOV.UK here.