A move often changes who lives in a home, not just where. A partner moves in, a housemate leaves, a student joins the household. Each change can alter the Council Tax bill, and the rules on who counts as an adult decide whether a discount applies. This article sets out what GOV.UK says about Council Tax liability and discounts when household make-up changes. It covers England, Wales and Scotland; Northern Ireland uses a different system, touched on in the site’s guide to moving home in Northern Ireland.
The starting point: two adults
GOV.UK says a full Council Tax bill is based on at least two adults living in a home, and that people aged 18 or over will usually have to pay. It states that spouses and partners who live together are jointly responsible for paying the bill. In practice, when a couple moves in together, both are jointly responsible for the bill, and the household is counted as two adults unless someone is “disregarded”.
Who is not counted
Some people are disregarded when working out how many adults live in a property. GOV.UK lists them as people who are:
- under 18 years old;
- on certain apprentice schemes;
- 18 or 19 years old and in full-time education;
- full-time students at college or university;
- under 25 years old and receiving funding from the Education and Skills Funding Agency;
- student nurses;
- foreign language assistants registered with the British Council;
- severely mentally impaired;
- live-in carers for someone who is not their partner, spouse or child under 18; or
- diplomats.
The discount is not automatic. GOV.UK says a discount or exemption must be applied for even if someone is disregarded.
What the discounts are worth
According to GOV.UK, the bill is reduced by 50% if everyone living in the household is disregarded. It is reduced by 25% if the person paying Council Tax lives on their own, or if everyone else in the home is disregarded. This is why a move can change the amount due. If one person moves in and is counted as an adult, a sole occupier’s 25% reduction stops; if a full-time student moves in with a sole adult, the household is still eligible for a 25% reduction, because the student is disregarded.
Students moving in or out
GOV.UK explains that households where everyone is a full-time student do not have to pay Council Tax, and that a household that receives a bill can apply for an exemption. To count as a full-time student, a course must last at least one year and involve at least 21 hours of study a week. For a qualification up to A level taken by someone under 20, the course must last at least three months and involve at least 12 hours of study a week. A household that includes someone who is not a full-time student will receive a bill, though it may still qualify for a discount.
Telling the council about changes
The site’s guide to Council Tax and rates when you move house covers registering a new address. GOV.UK adds a warning specific to discounts: anyone who receives a discount by mistake must contact their local council. If they do not, they could get a fine, and the council may ask them to pay back the discount. When a household changes, the safe practice is to write to the council promptly, giving the date of the change and who now lives in the home, and to keep a copy.
GOV.UK also says that people on a low income or receiving benefits may be able to claim Council Tax Reduction, previously called Council Tax Benefit, and that bills are usually split into 10 monthly payments, which some councils will spread over 12 months if the payer contacts them when struggling.
Common questions
Does a discount apply automatically when I move in alone? No. GOV.UK says a discount must be applied for, even where someone is disregarded.
If my partner and I move in together, who pays? GOV.UK says spouses and partners who live together are jointly responsible for the bill.
What if I keep a discount I am no longer entitled to? GOV.UK says the council may ask for the discount to be repaid and a fine is possible if it is not reported.
The bottom line
In England, Wales and Scotland, Council Tax is based on a household of two adults, spouses and partners are jointly liable, and a 25% discount for a single adult or a 50% discount for a fully disregarded household must be applied for. When a move changes who lives in the home, the council should be told promptly, because wrongly kept discounts can lead to repayment demands and fines. This is general information; each council administers its own accounts, and the local council is the place to confirm the position for a given household.