Your Council Tax bill explained

Local Council Tax Reduction Scheme

To help those on the lowest income, Cumberland Council has a generous Council Tax Reduction scheme.

Council tax benefit (CTB) was abolished in 2013 and replaced with a Local Council Tax Reduction scheme. Although it is closely aligned with the CTB scheme that preceded it, it is not a benefit. It is a reduction in the amount of council tax a person is liable to pay. However, unlike other council tax discounts, this reduction is means-tested and is administered alongside housing benefit claims in the same way CTB was.

Council tax reduction helps to pay towards some, or all, of your council tax bill if you are on a low income.

The maximum amount of council tax reduction payable is 100 per cent of the charge. The amount you get will depend on your individual circumstances. This will include your age and whether you live alone.

Council tax reduction can be applied for online and the amount of support you get will normally be deducted from the council tax bill we send you.

Care leavers discount from council tax

A care leaver is defined in The Children (Care Leavers) Act 2000 and refers to eligible, relevant and former relevant children.

• Eligible children are those young people aged 16-17 who are still in care and have been ‘looked after’ for a total of 13 weeks from the age of 14 and including their 16th birthday.
• Relevant children are those young people aged 16 and 17 who have already left care, and who were ‘looked after’ for at least 13 weeks from the age of 14 and have been ‘looked after’ at some time while they were 16 or 17.
• Former relevant children are those young people aged 18, 19 or 20 who have been eligible and/or relevant.

If you are a care leaver as defined in The Children (Care Leavers) Act 2000, you may be eligible for a discount from council tax until your 25th birthday.

Council tax discretionary relief (Section 13A Local Government Finance Act 1992)

Under Section 13A of the Local Government Finance Act 1992, the council has the power to reduce liability for council tax in relation to individual cases or class(es) of cases that it may determine, where national discounts and exemptions cannot be applied. 

Council tax if you have a disability

If you, or someone living with you, need a room, an extra bathroom, kitchen, or extra space in your property to meet special requirements arising from a disability, you may be entitled to a disabled reduction. Your bill may be reduced to that of a property in the band immediately below the band shown for your property. If you are already in band A, the lowest valuation band, you may still qualify for a reduction

Council tax discounts

The council tax bill for each band assumes that there are at least two adults living in the property. If there is only one adult resident, you are eligible for a 25% discount. 

Any person over 18 years of age is counted as an adult. The following people may not count when we look at the number of adults who live in your property:

• Full-time students, student nurses, apprentices and youth-training trainees
• Patients living in hospital
• People looked after in care homes
• People who are severely mentally impaired
• People staying in certain hostels or night shelters
• Persons in respect of whom child benefit is payable
• 18- and 19-year-olds who are at or have just left school
• Care workers on a low income
• People caring for someone with a disability who is not a spouse, partner or child under 18
• Members of visiting forces and certain international institutions
• Foreign diplomats and certain members of international organisations
• Members of religious communities
• People in prison (except those in prison for not paying their council tax or a fine)

Occupied exemptions from council tax

In most cases, if a property is occupied it is charged council tax, however there are exceptions and a property can also be exempt if it is occupied: 

• Class M – halls of residence, if they are owned by a prescribed educational establishment
• Class N – occupied only by students, school or college leavers or certain spouses or dependents of students if all the residents are students and are undertaking a full-time course of education at a prescribed education establishment
• Class O – armed forces accommodation (UK Forces) owned by the Secretary of State for Defence
• Class P – members and dependents of visiting forces
• Class S – if all residents are under 18 years of age
• Class U – if occupied by one or more severely mentally impaired person or if occupied by one person who is severely mentally impaired together with a person who meets the requirements of Class N above (students, school or college leavers or certain spouses or dependents of students)
• Class V - diplomatic immunity if it is the main residence of at least one person on whom privileges and immunities are conferred by the Diplomatic Privileges Act 1964, Commonwealth Act 1966, Consular Relations Act 1968 and the Commonwealth Countries and Republic Ireland Order 1985
• Class W – occupied annexes are exempt if they form part of a single property of at least one other property and it is the sole or main residence of a dependent relative of a person who is resident in the other property. A dependent relative is defined as a person aged 65 years or more, a person who is severely mentally impaired, a person who is substantially and permanently disabled. 

Unoccupied exemptions from council tax

Empty properties may be exempt from paying council tax if the property is:

• Class B – vacant and owned by a charity 
• Class D – vacant because the liable person is in prison 
• Class E – vacant because the liable person is a permanent patient in a hospital or care home
• Class F – vacant because the liable person is deceased and probate or letters of administration have not yet been granted. 
• Class G – vacant because nobody is allowed to live there by law
• Class H – vacant and held for a minister of religion
• Class I – vacant because the liable person is receiving care at another address that is not a care home
• Class J – vacant because the liable person is caring for someone elsewhere
• Class K – vacant because the liable person is living elsewhere to study
• Class L – vacant because the property has been repossessed
• Class Q – vacant by a bankrupt trustee
• Class R – vacant caravan pitch or boat mooring
• Class T – vacant part of another property that may not be let separately due to planning restrictions

Empty property discounts and premiums

• Unoccupied and furnished properties (Class A) – 50 per cent discount
• Unoccupied and furnished properties (Class B) – no discount, 100 per cent charge applies*
• Unoccupied and furnished properties (Class B) from 1/4/25 – 100 per cent premium, 200 per cent council tax payable**
• Unoccupied and unfurnished properties (Class C) – 100 per cent discount for one month. No discount is awarded after this period and the full council tax is due. 
• Unoccupied and unfurnished properties (Class D) – no discount, 100 per cent charge applies
• Long term empty, unoccupied and unfurnished properties between 1 year and 5 years – 100 per cent premium resulting in 200 per cent council tax payable
• Long term empty, unoccupied and unfurnished properties for more than 5 years – 200 per cent premium, resulting in 300 per cent council tax payable
• Long term empty, unoccupied and unfurnished properties for more than 10 years – 300 per cent premium, resulting in 400 per cent council tax payable

Long term empty premiums are charged against the property. If you are considering purchasing a property that has been empty for a while, please contact the Council Tax Team to discuss this further, as you may be subject to the additional premium immediately. 

*Some second homes may be eligible for a 50 per cent discount. If you are responsible for Council Tax on two furnished properties, one of which is not your main home, you may be eligible for a 50 per cent discount if you are required to occupy either property as a condition of your employment (and it is specified as part of your employment contract). 

**At its meeting on 6 March 2024, Cumberland Council adopted a 100 per cent council tax premium to unoccupied and furnished properties that are occupied periodically (commonly referred to as second homes) with effect from 1 April 2025. 

Council Tax discounts, exemption or reductions can be applied for online.

Appeals and disputes regarding your council tax

You may appeal if you think you are not liable to pay council tax – for example, if you are not the resident owner, or because the property is exempt. You may also appeal if you believe we have made a mistake when working out the amount you should pay. This relates to discounts and reductions under the disability reduction and Council Tax Reduction Scheme. If you want to appeal on these grounds, you must first contact the council and state the reasons for your appeal. Find out more online.

We have a duty to respond to you within two months. We will inform you of the steps we have taken to deal with your appeal. If you are not satisfied, you may appeal to the Valuation Tribunal Service within two months of our decision. If we fail to respond to your original appeal, you may appeal directly to the Valuation Tribunal Service within four months of your original appeal to the council. 

Appeals regarding your council tax band

If you believe your council tax band is incorrect, you must first appeal to the listing officer of the Valuation Office Agency. The listing officer will look at your cases and respond within four months. If you disagree with the listing officer’s decision you can, within three months of the listing officer’s decision, make an appeal directly to the Valuation Tribunal Service.

If the listing officer believes a proposal is invalid because it does not meet the statutory requirements, they may serve an invalidity notice. You may, within four weeks of receiving the notice, appeal directly to the Valuation Tribunal Service stating the reasons for disputing the notice.