Council Tax Reductions

Discounts

 

Service update: Single Occupier Discount Review

Have you received a letter regarding your single occupier discount and need to make a change?

If you have received a letter you are required to complete an online review form .

Failure to return a completed form will result in your discount being removed.

Please note failure to provide or supply incorrect information that may affect entitlement to a discount could incur a penalty of £70.00. 

 

The Council Tax charge for occupied properties is based on a principle of 50% charge for the property and 50% charge for occupants living at the address. Only persons aged 18 or over are considered for Council Tax purposes.  If one person occupies a property or one or more persons are disregarded, there may be a reduction in the charge.

Discounts for unoccupied properties were abolished on the 1 April 2017. Further information is provided on the council tax reductions, empty properties web page.

Whilst an application for a reduction is being considered your bill should be paid as normal until you receive a new bill. 

Single Occupier Discount

A single occupier discount of 25% may apply if certain conditions are met.

Examples of when a Single Occupier Discount may apply include:

  • You are the only person over the age of 18 living in your property and the property is lived in as your main home.
  • No other person considers your home as their main residence e.g. son or daughter staying in halls of residence or a person staying in other accommodation such as barracks.

If you are not the only occupant over the age of 18 or someone else considers your address as their main home, the Single Occupier Discount will not apply.

Council Tax Disregards

In certain circumstances a person can be disregarded from Council Tax or an exemption may apply. 

If these conditions are met the following discounts may apply:

  • A 25% discount may apply if all but one of the occupiers of a property are disregarded;
  • A 50% discount may apply if all the occupiers are disregarded. 
  • A 100% exemption may apply.

Examples of people disregarded from Council Tax are:

  • People aged over 18 who have child benefit paid for them.
  • Some school or college leavers aged under 20; students, student nurses and foreign language assistants.
  • Apprentices.
  • People on youth training schemes.
  • Severely mentally impaired.
  • Long-term residents of hospitals, residential care homes or nursing homes (care homes).
  • Volunteer care workers; people providing care for someone they live with.
  • Members of religious communities; members of international headquarters, defence organisations and visiting forces.
  • People who are in prison or detention (except for non-payment of fines or local taxes).
  • People staying in hostels or night shelters.

Apply online for a council tax disregard

If the disregard options do not apply to you, please see our information about Council Tax exemptions.

Reductions for Annexes

When is an exemption possible?

Unoccupied annexe that can’t be let separately

An annexe will be exempt (which means you don’t have to pay Council Tax) if it:

  •   is unoccupied (there is no-one living in it)
  •   forms part of a single property, and
  •   can’t be let separately from the property without a breach of planning control.

To apply for a 100% exemption please click here

Dependant relative living in an annexe

An annexe will be exempt (which means you don’t have to pay Council Tax) if it is separately banded for Council Tax but forms part of another property and a dependant relative is living in it as their main or only home.

A relative is classed as dependant if they are: 

  •   over the age of 65
  •   substantially or permanently disabled, or
  •   severely mentally impaired.

When is a discount possible?

You may get a 50% discount on the Council Tax bill for an annexe if:

  •   the annexe forms part of a single property which includes at least one other property; and
  •   the annexe is being used as part of the main home by the person liable to pay Council Tax.

Discount for relatives living in an annexe

If you live in an annexe you may get a 50% discount on your Council Tax bill if you are a relative (not a dependant relative) of the person who is responsible for paying the Council Tax on the main property.

To get this discount, the annexe must:

  •   form part of a single property; and
  •   be occupied by a relative of the person who is liable to pay the Council Tax on the main property; and
  •   be the main or only home of the person living in it.

 

Work Related Properties

In certain circumstances where a second property is classed as job related, a discount of 50% may be applicable.

The discount may be awarded if the following conditions are met:

  • The property is provided to you or a spouse by an employer and this address is your main residence.
  • The property is required to enable proper performance of duties.
  • It is customary for the employer to provide a residence e.g caretaker, pub landlord, minister of religion.
  • You remain the liable person at both addresses.

There are other conditions that apply if you are a director of a company.

To apply for a job related discount please email council.tax@iow.gov.uk confirming:

  1. The address you have to live in provided by your employer.
  2. The address of you have moved from.
  3. Provide a copy of your employment contract, stating the property has been provided to you, and confirming the address you are required to reside for proper performance of your duties.

You may be required to provide further evidence upon application to determine eligibility for a reduction.  

Reductions for Care Leavers

From 1 April 2019 a reduction in Council Tax may be awarded to persons who are defined as a Care Leaver under the Isle of Wight Council’s Childrens Services and are liable to pay Council Tax. Where a property is occupied only by those defined as a care leaver a 100% discount is applicable. If other residents in the same property are not defined as a care leaver a discount of 50% will be applicable.

If you have provided consent to the Isle of Wight Councils Children and Families Service they will provide the Council tax team with your information for a reduction to be considered. Where this is possible, a formal application is not required, as the Council Tax team will be able to establish your eligibility. 

If consent had not been provided you will need to make a request for the reduction, including their written authority for the Council's Children and Families Service to provide the necessary evidence to confirm eligibility.

 

To notify us of a change in your household circumstances, for example you have moved home or some has moved out or moved in with you, please complete a change in circumstances form.

Please Note: If you believe you have been allowed a discount/reduction you are not entitled to, you must tell us immediately or you may have to pay a £70 penalty

To let us know as soon as possible, please contact us.

 

Council Tax Discretionary Reduction (CTDR)

Section 13A (1c) of the Local Government Finance Act 1992, inserted by section 76 of the Local Government Act 2003 - this gave councils new powers to create their own discounts and exemptions, including powers to reduce the amount of Council Tax payable, normally for a short-term period on a case by case basis of between 1% & 100% in exceptional circumstances.  All other eligible discounts/reliefs must have been explored prior to an application being made.  Any discount given has to be met by the council.

The council has the power to agree discounts but is not obliged to do so as Council Tax is a tax related to property and not directly related to the provision of any specific services. It is not appropriate therefore, to relate the cessation, reduction or non provision of any specific services or facilities to the payment of Council Tax.

View the Council Tax Section 13A (1) (C) Discretionary Reduction in Liability Policy.

View the Guidance and Application form for Discretionary Council Tax Reduction under Section 13A of the Local Government Finance Act 1992.

View the Equality Impact Assessment Section 13A Discretionary Relief Policy.