Council tax discounts and exemptions: lawful ways to reduce a bill

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Check genuine council-tax discounts, exemptions and support, including the rules for empty properties and second homes.

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Who has to pay council tax?

If you live in a property as a renter or homeowner, the chances are that you have to pay council tax to your authority.

There are several instances, such as exemptions and discounts, that could significantly reduce the amount of council tax you have to pay.

Who is not liable?

A person being disregarded when adults are counted is not the same as the whole property being exempt. Qualifying students, apprentices, carers and other people may be disregarded, but conditions apply to each category. Being disabled or caring for someone does not automatically remove liability.

A household containing only qualifying full-time students can be exempt. A mixed household may instead receive a discount, depending on who is counted and who is legally liable. Apply to the council and provide the evidence it requests. See the official guidance.

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When do you have to pay council tax on empty properties?

An empty home can still attract council tax, and long-term empty-property premiums may increase the bill. Discounts, exceptions, duration thresholds and premium levels depend on the country and council; do not assume most councils offer a reduction or that the maximum charge is simply double.

An unoccupied home left by someone who has died may qualify for an exemption before probate and, if the conditions continue, for a limited period afterwards. Inheriting a property is not by itself a permanent exemption. Tell the council about the ownership and occupancy, and check the relevant rules.

Debt Strategy	How It Can Help With Council Tax Arrears
Flexible Payment Arrangements	Local councils often offer the option to spread council tax payments over 12 months instead of the standard 10.
One-Off Payment	If affordable, pay the arrears or agree instalments. Any discretionary reduction must be assessed by the council; a lump sum does not automatically earn a discount.
Hardship Schemes	Council Tax Reduction (CTR) Discretionary Relief Hardship Funds Support for Vulnerable Individuals Current discretionary support (ask your council) Charitable Grants
Discounts and Exemptions	Check for eligibility for discounts (e.g., single-person discount of 25%) or exemptions (e.g., properties unoccupied due to the resident’s death, properties where everyone’s a full-time student, or someone qualifies to be disregarded because of severe mental impairment; the effect depends on the household and eligibility rules)
Deferred Payments	Some councils allow deferring payments wherein you’ll pay less now and make up for it later.
Challenge your Council Tax Band	If you believe your property’s council tax band is incorrect, you can challenge it to potentially lower future payments and refund previous overpayments.
Debt Solutions	Certain formal debt solutions like Debt Relief Orders (DRO), Bankruptcy, and Individual Voluntary Arrangements (IVA) can potentially write off council tax arrears,
Professional Debt Advice	UK residents can seek free advice from debt organizations and charities for council tax guidance tailored to their specific financial situation.

How about second homes?

A furnished second home can attract the full bill and an additional premium, depending on the area. In England, councils have had powers to charge up to a 100% additional second-home premium from April 2025, subject to exceptions. Wales and Scotland have their own rules.

A home rented as someone’s main residence or used as qualifying business accommodation can have a different tax treatment. Ask the council to assess the actual use rather than assuming a second-home discount applies.

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How can you get a discount on council tax?

A full bill normally assumes at least two counted adults. If only one counted adult has their sole or main home there, the usual single-person discount is 25%. A temporary absence does not necessarily change someone’s main home.

Where no residents count, the outcome depends on the applicable disregard or exemption; it is not always a 50% bill. Qualifying all-student households can be exempt. Council Tax Reduction for low income is a separate scheme. Ask the council to apply the correct rule to the household.

What happens if you lie about council tax?

If you try to get a council tax reduction by lying, such as telling the council that an occupier is in full-time education when they are not, the local authority may prosecute you.

Or they might give you a financial penalty for evasion.

Similarly, you could be prosecuted or fined for not telling the council that your circumstances have changed to keep getting a reduction you are no longer entitled to.

Always be truthful to avoid these council tax fraud penalties.

Council tax evasion penalties

Knowingly supplying false information or failing to report a relevant change can lead to repayment, penalties or prosecution. Careless mistakes and deliberate fraud are treated differently. There is no single penalty or guaranteed £1,000 maximum covering every council-tax case.

Correct errors promptly and obtain advice if you receive a penalty or investigation letter. Reporting an error does not automatically guarantee that all consequences will be waived.

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How to get out of council tax debt

Here are some ways to get out of council tax debts:

1. Prevention not cure!

Prevent getting into council tax debts in the first place by agreeing to pay the correct amount for your property and occupants.

Do not make false reduction claims, and make the council aware of any application mistakes first.

From personal experience, you should use various repayment frequency options (weekly, fortnightly, monthly etc.) and payment methods that match your needs.

2. Repayment Plans

If you do get into debt, you’re not alone.

Be sure to communicate with the council and see if they can offer you a council tax repayment plan to make the debt affordable.

If you repay the money owed in an affordable plan, you can avoid further financial difficulty.

Contact a charity for support. They might also help you with council tax advice, including how to deal with council tax arrears.

3. Debt Solutions

A repayment plan is not the only debt solution.

There are other ways to get out of council tax debt over time, and some might even help you write off all or some of the money owed.

See our debt solutions page for information.

What happens if you don’t pay?

The council may apply for a magistrates’ liability order and then use lawful recovery powers, including enforcement agents. Recoverable costs can increase the balance. Agents must follow the rules; intimidation and harassment are not legitimate purposes of enforcement.

Seek free advice and contact the council promptly about a disputed or unaffordable bill. Record concerns about conduct and use the relevant complaint route.

Can you go to prison for an unpaid council tax bill?

In England, imprisonment for council-tax non-payment is a last-resort procedure. The magistrates must investigate your means and find wilful refusal or culpable neglect; inability to afford the bill alone is not enough. The maximum is three months. Wales has abolished imprisonment for council-tax non-payment. Scotland uses a different enforcement system.

Council Tax Contact Details

Website:

https://www.gov.uk/browse/housing-local-services/council-tax

References

Big Issue – Council tax debt in England