Assessing Council Tax Rates

Are Students or the Elderly Entitled to a Local Authority Exemption?

Council tax rates have been increasing rapidly in recent years, but are set to worsen. Council tax exemption is a possibility for certain vulnerable groups.

Council tax is a domestic property tax that is used to pay for local services. It is widely predicted that council tax rates are set to rise. With increased numbers claiming council tax exemption, the remainder are having to pay the shortfall. The Local Government Association said that 83% of authorities had reported a fall in income.

Margaret Eaton, chairman of the Local Government Association said: "These figures demonstrate the effects the credit crunch and the recession are having on councils across the country and the potential impact on front line services."

Which Council Tax Band?

All local authorities keep a comprehensive list of properties. Based on a 1991 valuations list, they classify all properties by putting them into a specific council tax band. Should a property have been built after 1991, the value of the home is determined based on what it would have been then.

Who Pays Council Tax?

The system establishes who is the "liable person". The individual at the top of the housing hierarchy is deemed to be the 'liable person'. If two people own a property they would both be held equally liable.

Council Tax Exemption - Vulnerable Groups and Those Who Live Alone

• Full time students. A place that is occupied by full time students has complete council tax exemption. If someone who isn't a full time student lives there, they will have to pay but at a reduced rate.
• Disabled people. If someone living in the household is substantially disabled, the council tax office will lower the amount paid by one band.
• Living alone. If someone lives alone they qualify for a council tax discount of 25%. Someone also qualifies as living alone if they live with someone who is under 18 or on a government training scheme.

Failure to Pay Council Tax

• Earning attachments. A local authority has the power to deduct money via an earnings attachment from wages or benefits;
• Bailiffs. Property can be seized to cover the amount owed to a local authority;
• Imprisonment. Should the other methods fail, it is possible that the Magistrates Court could invoke imprisonment for a period of up to 3 months.

If struggling to make payments to a local authority, check with the local council tax office to see if eligible for a council tax discount. Many vulnerable groups are able to either reduce payments or get a full council tax exemption. Also make sure that the property has been placed in the correct property band.

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