Thousands of students across the UK may be eligible for a council tax exemption that removes their entire bill. The government has confirmed that households occupied exclusively by full-time students do not have to pay the charge, although eligible residents may need to apply.
The rules also allow certain households containing students and other residents to receive a discount. Eligibility depends on the type of course being studied, the number of hours involved and who lives at the property. Importantly, the government has warned that discounts are not applied automatically.
Who Qualifies for a Full Council Tax Exemption?
Council tax is an annual charge collected by local authorities to fund services. The amount households pay depends on their property’s valuation band, their circumstances and the funding required by their council.
According to GOV.UK, adults aged 18 and over are generally responsible for paying council tax. A standard bill assumes that at least two adults occupy a property, while spouses and partners living together share responsibility for payment.
Students are treated differently under the rules. Properties occupied entirely by full-time students are exempt from council tax, meaning residents can qualify for a 100% reduction. To meet the government’s definition of a full-time student, a course must last at least one year and involve a minimum of 21 hours of study each week.
Different requirements apply to students under 20 studying towards qualifications up to A-level standard. Their courses must last at least three months and involve at least 12 hours of weekly study. The rules also recognise certain circumstances in which students temporarily interrupt their education.
According to Citizens Advice, full-time students who take time away from their studies because of illness or family commitments can continue to be regarded as students for council tax purposes, provided they intend to return to their course.
Where a household includes someone who is not a full-time student, a council tax bill will still be issued. The property may nevertheless qualify for a discount, depending on the circumstances of its occupants.
How To Claim a Discount and Which Other Residents Are Disregarded
Students who believe they qualify for an exemption must apply through their local council if they receive a bill. The government provides an online application service through GOV.UK. Council tax calculations also exclude certain individuals when determining how many adults count towards a household’s bill. These residents are described as being ‘disregarded’.
According to the UK government, the categories include children under 18, people aged 18 or 19 in full-time education, university and college students, student nurses and people undertaking certain apprenticeship schemes.
Other disregarded groups include people under 25 receiving funding from the Education and Skills Funding Agency, foreign language assistants registered with the British Council and individuals classified as severely mentally impaired.
Live-in carers looking after someone other than their spouse, partner or child under 18 may also qualify for disregarded status. Diplomats are included in the government’s list. Being disregarded does not automatically mean that every household receives a full exemption. The outcome depends on the other residents living at the property.
Anyone uncertain about their eligibility or responsibility for payment should contact their local council. Residents must also notify their council if they receive a discount incorrectly. Failure to do so could result in a fine, and the authority may require repayment of the discount already received.
