Households in England could slash their Council Tax bill from an average of £2,171 a year to £0 thanks to a little known discount exemption.
Council tax bills always increase every year and usually by the legal maximum of 4.99 percent – the exact maximum they can go up without triggering a mandated local referendum.
Compounding the increases annually has led to a staggering 50 percent rise since 2010.
But households in England can get their bill slashed from £2,171 to nothing thanks to a useful discount.
Residents in Band H properties face the highest possible council tax, with a hefty annual charge of £5,087 on average. But, some individuals can have their bills cut by 100 per cent, meaning they pay absolutely nothing.
This only applies to those living in England, not the UK as a whole. In Scotland and Wales, rates work differently, while there is no Council Tax at all in Northern Ireland.
Those who are severely mentally impaired and live alone should be eligible for a 100 per cent reduction on their bill. Similarly, if you receive the Guarantee Credit element of Pension Credit, you could also qualify for a 100 per cent discount on your council tax.
According to Council Tax rules, to qualify for this reduction, individuals must have a ‘severe impairment of intelligence and social functioning (however caused) which appears to be permanent’. A 25 percent reduction is applied unless there are two adults living in the property who are counted for Council Tax purposes.
If all residents in the property are considered severely mentally impaired, a full exemption applies. To be eligible for a reduction, the person must be over 18 and entitled to any of the following benefits: Incapacity allowance, Attendance allowance or Severe disablement allowance.
A severely mentally impaired person living with a student would also qualify for the full exemption, as students are ‘disregarded’ for the purposes of Council Tax.
Local authorities have listed other benefits such as the Middle Or Higher rate of the care component of Disability Living Allowance, Increase in rate of disablement pension (where constant attention needed) and Disability working allowance.
Additional benefits include Unemployment support allowance and Constant attendance allowance, along with Income support which includes a disability premium and Employment support allowance (support component).
The list is completed by Universal Credit including a work capability element and Standard or enhanced daily living component of a Personal Independence Payment.
Gov.uk explains: “If you qualify as severely mentally impaired, uou’ll get a 100% discount if you qualify as severely mentally impaired and one of the following applies:
you live on your own
any other adults in your household either qualify as severely mentally impaired or are full-time students.”
