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Class U Exemption — SMI Sole Occupant Relief

By GetRighted Legal Research TeamLast updated July 2026

Summary

Class U of the Council Tax (Exempt Dwellings) (England) (Amendment) Order applies to dwellings occupied only by persons who are severely mentally impaired. In practice, this overlaps significantly with Class E under SI 1992/558 and the SMI disregard under SI 1992/548 Article 2. The exemption ensures that a dwelling where every resident has SMI — for instance, a couple both living with dementia — pays no council tax at all. The medical and benefit requirements are the same as for the standard SMI disregard.

When Class U Applies

Class U exemption covers the specific scenario where every adult occupant of a dwelling satisfies the SMI criteria: a medical certificate confirming severe impairment and receipt of a qualifying benefit. This most commonly arises in households with two adults who both have dementia or similar conditions. If only one resident has SMI and the other does not, the disregard (not exemption) applies instead.

Overlap with Class E

Billing authorities sometimes apply Class E rather than Class U, or vice versa. The practical effect is the same — full exemption. If your authority has applied either class and you are paying zero council tax, the distinction is academic. The important point is that full exemption applies when all residents have SMI.

Sources

  1. Council Tax (Exempt Dwellings) Order 1992, SI 1992/558
  2. Council Tax (Discount Disregards) Order 1992, SI 1992/548, Article 2

Frequently Asked Questions

Both my parents have dementia — can the house be fully exempt?
Yes. If both parents meet the two-limb SMI test (medical certificate and qualifying benefit), the dwelling qualifies for full exemption. Apply with medical certificates and benefit award letters for both residents.
Does it matter that a carer visits daily but does not live there?
Non-resident carers do not affect the exemption. Only adults whose sole or main residence is the dwelling count. A visiting carer who lives elsewhere is not a resident.

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