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Council Tax Discount — Definition and Types

By GetRighted Legal Research TeamLast updated July 2026

Summary

Statutory reductions in council tax — known as discounts — reduce the amount payable on a dwelling. The most common is the 25% single-person discount under LGFA 1992 s.11, which applies automatically when only one non-disregarded adult is resident. Other discounts include the 50% unoccupied discount (where all residents are disregarded), the annexe discount under s.11A, and discretionary local discounts under s.13A. Discounts differ from exemptions — a discount reduces the charge, while an exemption removes it entirely. If you believe a discount has been incorrectly refused or removed, you can dispute under LGFA 1992 s.16.

Types of Council Tax Discount

The principal discounts are: (1) 25% single-person discount — one non-disregarded adult resident (LGFA 1992 s.11(1)); (2) 50% discount — all adult residents are disregarded (LGFA 1992 s.11(3)); (3) annexe discount — 50% mandatory discount on qualifying annexes (s.11A + SI 2013/2977); (4) empty property discount — discretionary reduction set by the billing authority for unoccupied dwellings (s.11A); (5) second home discount — abolished by most authorities but some retain a reduced rate under s.11A. Each has distinct eligibility criteria and evidence requirements.

Discount vs Exemption

A discount and an exemption are legally distinct. A discount reduces the council tax charge by a percentage — you still pay something. An exemption removes the charge entirely for the relevant period. Both are statutory entitlements where the conditions are met. If you qualify for both a discount and an exemption, the exemption takes priority.

Checking Your Entitlement

Review each of these to confirm whether a discount applies:

  • ✓How many adult residents live at the property? Count only non-disregarded persons
  • ✓Is any resident disregarded under SI 1992/548 — student, carer, SMI, apprentice, or other category?
  • ✓Is the property an annexe occupied by a relative of the main-dwelling resident?
  • ✓Has your billing authority exercised its s.11A powers to alter default discounts for empty or second homes?
  • ✓Has a previously granted discount been removed — and if so, what evidence did the authority rely on?

Sources

  1. Local Government Finance Act 1992, s.11
  2. Council Tax (Discount Disregards) Order 1992, SI 1992/548

Frequently Asked Questions

How do I apply for a council tax discount?
Contact your billing authority in writing, specifying the discount type and providing supporting evidence. There is no statutory application form — a letter or email is sufficient. The authority must consider your application and respond. If refused, dispute under LGFA 1992 s.16.
Can my discount be backdated?
Yes. If you were entitled to a discount but did not claim it, you can request retrospective application. There is no statutory time limit on backdating discounts. The authority may resist — challenge any refusal to backdate through the s.16 dispute route.
Does a council tax discount apply to all bands?
Yes. The 25% single-person discount and other statutory discounts apply regardless of the council tax band. A Band H property with one resident gets the same percentage reduction as a Band A property.

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