Money-saving expert Martin Lewis has urged Brits to check whether they’re eligible for a council tax exemption that could be worth £1,000s.
Hundreds and thousands of Brits could be eligible for a council tax discount or complete exemption – without even realising it. Based on the value of your property in 1991 (or 2003 if you live in Wales), the council tax banding system has long been a controversial one.
The average band D council tax set by local authorities in England for 2024/25 was £2,171, according to Government figures. Amid the cost-of-living crisis, this is yet another cost most of us could do without. Of course, council tax helps local authorities provide essential services we all rely on – including waste and recycling.
Martin Lewis recently brought the topic up on his ITV show, stating that certain medical conditions referred to as SMIs could result in a hefty discount. “An severe mental impairment (SMI) – horrible term, not mine – is defined as [impact on] intelligence and social functioning which appears to be permanent,” he reportedly said.
The money-saving expert added that severe dementia, strokes, severe Parkinson’s, and brain injuries were likely to fall under the government’s classification of a SMI. “To claim it, that person must also be on a qualifying benefit,” Martin warned. “In Scotland, they must be eligible for a qualifying benefit even if they’re not actually claiming.”
The government states that the phrase SMI ‘refers to people with psychological problems that are often so debilitating that their ability to engage in functional and occupational activities is severely impaired’. Because of this, it’s hard to give a black-and-white list of diagnoses, but conditions such as Schizophrenia and bipolar disorder often fall under this term.
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GOV UK says Brits will need to get a certificate to say they’re severely mentally impaired from a medical professional, such as your GP. If you qualify and live alone, you’ll get a 100 per cent discount on your council tax. If you live with an adult carer, the household receives a 50 per cent discount, while a 25 per cent discount is available if a SMI person is living with one qualifying adult.
There are other reasons you could be entitled to a council tax exemption, which are listed below. However, it’s important that you apply for your discount or exemption, and not just stop payments – even if you’re disregarded.
Council tax exemptions – the full list
- Under 18 years old
- On certain apprentice schemes
- 18 or 19 years old and in full-time education
- A full-time student at college or university
- Under 25 years old and get funding from the Education and Skills Funding Agency
- A student nurse
- A foreign language assistant registered with the British Council
- Severely mentally impaired
- A live-in carer for someone who is not your partner, spouse, or child under 18
- A diplomat
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