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Severe Mental Impairment Council Tax Relief

By GetRighted Legal Research TeamLast updated July 2026

Summary

A person with Severe Mental Impairment (SMI) is disregarded for council tax purposes under the Council Tax (Discount Disregards) Order 1992 (SI 1992/548), Article 2. If all residents of a dwelling are SMI or if an SMI person lives alone, the property is fully exempt under SI 1992/558, Class E. Where one resident has SMI and the other does not, the SMI person is disregarded, potentially triggering the single-person discount for the other resident. Billing authorities frequently fail to apply this relief — the medical and benefit criteria are cumulative.

Statutory Framework for SMI

Council Tax (Discount Disregards) Order 1992 (SI 1992/548), Article 2: a person is disregarded if they have 'a severe impairment of intelligence and social functioning … resulting from a condition such as dementia, severe learning disability, stroke, Parkinson's disease, multiple sclerosis, acquired brain damage or any condition that is similarly severe.' The person must also receive at least one qualifying benefit: incapacity benefit, severe disablement allowance, DLA (care component), PIP (daily living component), attendance allowance, or universal credit (disability premium). SI 1992/558, Class E: exemption where the dwelling is the sole or main residence of an SMI person.

Two-Limb Test

The SMI disregard requires satisfying two conditions simultaneously: (1) a medical certificate from a registered medical practitioner confirming the person has a severe impairment of intelligence and social functioning resulting from a qualifying condition; and (2) receipt of a qualifying benefit. Both limbs must be met. Once a benefit is awarded, the disregard should apply retrospectively to the date both conditions were first met.

Supporting Evidence

To claim SMI disregard or exemption:

  • Medical certificate signed by a GP or consultant confirming the SMI diagnosis and qualifying condition
  • Evidence of receipt of a qualifying benefit: DWP award letter for DLA, PIP (daily living component), attendance allowance, or universal credit (disability premium)
  • If the authority has removed a previously granted disregard: request the specific evidence they relied upon
  • Letter from billing authority confirming the current council tax position and any disregards applied

Awareness Gap

The SMI discount is one of the least-claimed council tax reliefs. Estimates suggest hundreds of thousands of eligible households in England are not claiming it. Alzheimer's Society has repeatedly urged billing authorities to proactively identify eligible residents rather than requiring applications.

Sources

  1. Council Tax (Discount Disregards) Order 1992, SI 1992/548, Article 2
  2. Council Tax (Exempt Dwellings) Order 1992, SI 1992/558, Class E
  3. Local Government Finance Act 1992, s.16

Frequently Asked Questions

Does the SMI person need to be the named council tax payer?
No. The disregard applies to any resident adult with SMI, regardless of who is named on the bill. If your partner or family member has SMI, they are disregarded from the resident count, which may trigger a discount for you as the remaining liable adult.
My relative was recently diagnosed with dementia. When does the disregard start?
The disregard applies from the date both the medical and benefit criteria are first met. If a qualifying benefit was in payment before the council was informed, you can request retrospective application. Submit a formal dispute under LGFA 1992 s.16 with the medical certificate and benefit award dates.
Can the council require further medical evidence after granting the disregard?
Yes, but only if there is genuine reason to doubt continued eligibility. Routine renewal demands for lifelong conditions such as dementia are challengeable. A diagnosis of a progressive condition that does not improve should not require periodic re-certification.
What if the council refuses the SMI disregard?
Submit a formal dispute under LGFA 1992 s.16. If rejected, appeal to the Valuation Tribunal for England within two months. VTE will review the evidence independently and is not bound by the billing authority's assessment.

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