Council Tax Exemption

Council tax is a system of local taxation used throughout the UK and is set by and payable to local councils as a contribution to cost of the services that they provide. The council tax bill for a house or flat will depend on its value and the number of adults living there. Some households are exempt from the tax, which means that no council tax is payable and there will be no bill for the household. In other cases certain people are disregarded when counting the number of adults in a household and there may be a reduction in the bill. It is worth noting that in Scotland, the new Government proposes to abolish the council tax and replace it with a local tax which is based on tenants' ability to pay.


Student Exemption
Students often believe that they are not liable to pay council tax. However this is not entirely true as students CAN and DO receive council tax bills. To qualify for exemption from council tax as a student you must be undertaking a full-time course of education. For council tax purposes a full-time student is someone who studies at a college or university in the UK for 21 hours or more per week for at least 24 weeks in the academic year.

Students on full-time programmes of study who are repeating years on a part-time or "exams only" basis can also qualify for exemption if the repeated year is consecutive, i.e. immediately following a full-time year of study with no break in attendance at university. Postgraduate research students who are in their final year can also qualify for exemption from council tax.

University Halls of Residence are automatically exempt from council tax, which means that students who live there will not have to prove their student status to be exempt. However, students living elsewhere may be asked by their local council to prove their student status, in order to confirm that a property where the residents are all full-time students is entitled to exemption for example, or to apply for a discount on a council tax bill where there are less than two adult residents in a property.

Nevertheless a student CAN be liable for a council tax bill. It is important to remember that if you are a student living alone in a home that you own or part-own, you will be responsible for the bill after a reduction of 25%, known as the single person's discount. If you are a student living with non-students and you have filled out an exemption form, you will be exempt but the other householders will have to pay the council tax bill. If you are a part-time student, you are not eligible for council tax exemption or a discount. However, you may be able to claim Council Tax Benefit which is awarded based on your income.


Applying for Exemption
Students are now able to apply for council tax exemption online on their local council website. If this is not possible, you can apply on paper.

The first step is to request an application for exemption, often referred to as a 'Council Tax Discount Form', from your local council tax office. You should do this as soon as you move into the property. Alternatively, students can usually download student exemption and student discount application forms from their university's website. Students must then get their exemption form stamped at their place of study by going to the University Registry Office (or equivalent office): remember to bring your student ID card.

The next step is to send the authorised exemption form back to your local council tax office. It is advisable to keep a copy of the exemption form in case it goes missing and your local council asks you to provide another copy. If you are sharing a property with other students it is best to send all the completed exemption forms back to the tax office together, for faster processing.

The Registry Office can also give you a certificate free of charge, which confirms your status as a student for Council Tax purposes; this can often be requested by visiting the Student Enquiry Office. However some local authorities prefer to use their own council tax discount forms and may not accept the certificate issued by the Registry as proof.