Council tax

What is council tax?

Council tax is a primary 'local tax' in the UK, although in Northern Ireland the equivalent tax to council tax is called rates. The money collected through these property taxes goes to local authorities (councils) to pay for local services such as maintaining parks, collecting rubbish, policing and personalised care.

Council tax applies to all properties, including mobile homes, caravans and boats whether they are rented or owned, which are used as the homes of individuals. These properties are described as domestic properties.

This property tax is based upon the value of the properties concerned, rather than the income of the individuals who occupy them. They bring in significant amounts of money, collecting much more than other taxes such as corporation tax, capital gains tax or inheritance tax.

There were some significant changes to council tax and council tax benefit from 1 April 2013.

Who has to pay council tax? 

Council tax is generally payable by any household. If there is only one adult in a household then they may be eligible for  a discount of 25%.

When calculating the number of members of a household certain groups are excluded such as full-time students and anyone aged under 18. There is a list of who is not classed as an adult for council tax on the GOV.UK website. 

As a student you would be disregarded from being classed as an adult for council tax provided that:

you are undertaking a full-time program of study, tuition or work experience at a recognised establishment;of at least one year;which lasts at least 24 weeks in each academic or calendar year and;which amounts to an average of at least 21 hours per week in each academic or calendar year.

However, once you reach the official end date of your course you will be classed as an adult for council tax purposes and will no longer be exempt as a student.

For more detail on your specific situation, see below.

I am a full-time student – do I have to pay council tax?

Generally if you live in a household where everyone is a full-time student then the household will be exempt from paying council tax.

It is worth checking with your university’s advice and counselling service as many universities now deal with council tax on your behalf if you live in the local borough. If you do need to provide evidence then you will need to submit a certificate of enrolment to your local authority’s council tax office. This can usually be obtained from your student enquiries centre.

A new certificate of enrolment will need to be sent to your local authority’s council tax office at the start of each academic year.