Liability (including Discounts and Exemptions)
Introduction
WHO IS LIABLE
How can I tell who has to pay?
What happens if someone has more than one residence?
What if there is more than one liable person?
Will each liable person get their own bill?
When are residents not liable?
How do councils know who is liable?
What if I disagree with the council's assumption on
who is liable?
What happens if I move?
DISCOUNTS
What is a discount?
How do discounts work and will I get one?
Who is not be counted?
Am I still liable if I am not counted for the bill?
What are the conditions for not being counted?
How do councils know where discounts apply?
What evidence do I need to support a claim?
What if I disagree with the council's decision on
my entitlement to a discount?
EXEMPTIONS
What sort of dwellings are exempt?
What should I do if I think my dwelling is exempt?
Will I get a bill for an exempt dwelling?
What can I do if the council says my property is not
exempt?
Introduction
On 1 April 1993 the council tax replaced the community charge (or "poll tax")
as the way people contribute to the cost of local services. This is one of a
series of leaflets about the council tax.
This leaflet explains who is responsible for paying the council tax in Scotland,
how the discount and exemption system works and which types of property will
be exempt from the tax. General information on council tax is given in the leaflet
'Council Tax - A Guide'.
Council tax is payable in respect of any dwelling which is not an exempt dwelling.
It is for the local assessor to determine whether or not a property is a dwelling
but in general all houses are regarded as dwellings and the definition includes
certain other residential accommodation, for example self-contained staff accommodation
within an hotel and caravans used as someone's sole or main residence.
WHO IS LIABLE?
How can I tell who has to pay?
There is only one council tax bill for each dwelling. To work out who will
have to pay for your house (or "dwelling"), look down the list below. As soon
as you reach a description which applies to someone in your house, that person
will be responsible for the bill (and will be the "liable person").
- a resident who owns the property;
- a resident who is a tenant;
- a resident who is a statutory, statutory assured, or secure tenant;
- a resident who is a sub-tenant;
- any other resident;
- the non-resident owner unless there is a non-resident tenant
or a non-resident sub-tenant, either of whom have a lease of six months or
more.
A "resident" is a person of 18 years or over who lives in the dwelling as his
or her sole or main residence.
These rules mean that the owner-occupier(s) or tenant occupier(s) (including
council tenant(s)) will usually have to pay the tax. If the property is empty
- or it is no one's main home, for example a holiday home, liability will fall
on the owner subject to paragraph f. A tenant will not have to pay the council
tax if the landlord lives in the same dwelling. These rules do not apply in
some special cases, these are described below.
What happens if someone has more than one residence?
In the case of people who have more than one residence, it is necessary to determine which is their main residence. This is a matter for the council to decide in the first instance, although an appeal may be made against their decision. Once the council has decided which of someone's residences they may be liable for the council tax on it as a resident occupier,
Resident tenant or simply as a resident. Liability for their other residences will depend on whether or not these are used by someone else as a sole or main residence. If they are no one's main home, then a discount will be applied (see section on discounts).
What if there is more than one liable person?
People who are joint owners or joint tenants are jointly liable for the one
council tax bill for the dwelling. Spouses of liable people are also jointly
responsible for paying the bill provided they are living together in the property,
whether or not they are joint owners or joint tenants. This also applies to
a man and woman living together as husband and wife. Where one of these jointly
liable people is severely mentally impaired that person will not be jointly
liable unless they are the sole owner or sole tenant in which case they will
remain liable.
Will each liable person get their own bill?
No. Your council will normally send just one bill, addressed either to one
liable person or (if the council is aware that there is more than one liable
person) in the joint names of several liable persons. One of the jointly liable
persons must pay the full bill; how they share the cost is a matter for them
to decide among themselves.
When are residents not liable?
In some special cases the owner, not the residents, will have to pay the council
tax. The principal examples are:
- dwellings occupied by more than one household where the people living there
have exclusive access to separate parts of the dwelling, but may perhaps share
cooking or washing facilities. Probable examples are some hostels, nurses'
homes or groups of bed-sits;
- religious communities such as monasteries or convents;
- dwellings which are not the owner's main home, but which are the main home
of someone whom the owner employs in domestic service.
If you live in one of these dwellings, where the owner is liable, you will
not be liable for payment of the council tax. If your landlord is the liable
person, they might be able to ask you to pay something towards the bill, depending
on the terms of your tenancy agreement with them.
For a manse or other dwelling occupied by a minister of religion as their home
and place of work, the body responsible for the minister's remuneration will
be responsible for the bill.
How will councils know who is liable?
Councils have statutory powers which enable them to seek information for the
purpose of identifying who the liable person is in relation to a dwelling. If,
therefore, your council sends you a form you should complete it and return it
to the council. If you don't return the form within 21 days, you may face
a penalty of £50. In cases where they have not been able to establish the
name of the liable person(s) they may send the bill for a dwelling addressed
to "The council tax payer(s)".
What if I disagree with the council's assumption on who
is liable?
You should be able to reach an agreement by phoning your council directly.
If not you should write to the council explaining what you object to and why.
The council will have two months to provide an answer. If you still disagree
with the council, or if it has not acted within the two month period, you will
be able to appeal to a valuation appeal committee.
You must continue to pay your original bill while your appeal is outstanding.
What happens if I move?
The council tax is worked out on a daily basis. If you move home you may stop
being the liable person for your old home, and may become the liable person
for your new home. You should tell your council about your move so that it can
adjust your bill and make sure you pay the right amount. This is especially
important if you move to a new council area as you may be due a refund, depending
on the method you used to pay the council tax and how much has already been
paid.
DISCOUNTS
What is a discount?
The full council tax bill assumes that there are two adults (persons of 18 or over) living in a dwelling. If only one adult lives in a dwelling the council tax bill will be reduced by a quarter (25 per cent).
If a dwelling is not a main home - perhaps because it is a holiday home - then the dwelling will be eligible for at least a 10% discount. This is due to local authorities having discretion to set discounts for second homes and long-term empty homes between 10% and 50%. However, there are exemptions to this to ensure that the following properties can be eligible for a 50% discount:
- Purpose built holiday chalets which are restricted from being occupied throughout the year.
- Tied accommodation which a person must stay in for work purposes.
- Empty Dwellings (a 50% discount will be retained for 6 months after the initial 6 month exemption)
- Dwellings requiring repair
For further details, you should contact your local authority.
The bill will not be increased if there are more than two adults in the dwelling or, where a discount applies, if extra adults are present but only as short-term visitors.
How will discounts work and will I get one?
Certain people are not counted when looking at the number of adults resident
in a dwelling. For example, if there are two adults in a dwelling, and one of
them is in one of the special groups set out below, the bill will be worked
out as if only one adult lives there and will be reduced by one quarter.
To find out if a discount may apply to your home, you should count the number
of adults who live there as their main home, but who are not in one of the special
groups. If you are left with two or more people, there will be no discount.
If there is one person, your bill may be reduced by one quarter. If no one uses
it as their sole or main residence, you may get your bill reduced by one half.
Who will not be counted?
The following people will not be counted in deciding the council tax payable
in respect of a house if they meet certain conditions:
- 18 and 19 year olds who are at, or who have just left, school or certain
other educational establishments;
- older full-time students, student nurses, apprentices and Youth Training
trainees;
- patients resident in hospital;
- people who are being looked after either in private hospitals or in accommodation
provided by a care home service in which they are receiving treatment or a
high level of care or both;
- people who are severely mentally impaired;
- people kept in hospital under the Mental Health (Scotland) Act 1984;
- people staying in certain hostels or night shelters (like those run by
the Salvation Army);
- careworkers working on low pay usually for charities (such as Community
Service Volunteers);
- people caring for someone with a disability who is not their spouse or
partner or a child of their's under 18;
- members of certain religious orders;
- convicted and remand prisoners.
Am I still liable if I am not counted for the bill?
If you are a liable person and a discount is awarded because of your status,
or you are not counted because you do not live in the property, you will still
be responsible for paying the smaller amount. (There is an exception to this
general rule in the case of people who are severely mentally impaired who would
otherwise be jointly liable; in most cases they will cease to be liable).
What are the conditions for not being counted?
Separate leaflets are available which explain the conditions for the following
people:
The conditions for the other main groups are explained below.
People staying in certain hostels or night shelters
Some dwellings, such as short stay hostels or night shelters, provide communal
accommodation for people who have no fixed abode and no settled way of life.
These may include hostels run by the Salvation Army or church. Anyone whose
main or only home is in this type of dwelling will not be counted.
Members of certain religious orders
You will not be counted if you are a member of a religious community whose
main work is prayer, contemplation, the relief of suffering, education or any
combination of these, provided that you depend on the community for your material
needs and have no personal income (other than a pension or pensions from a former
job) or capital.
People in Prison
People who are in prison (whether on remand or following conviction) will
not be counted. People will, however, be counted if they are imprisoned for
non-payment of a fine or if they are imprisoned in England and Wales for not
paying council tax there.
How will councils know where discounts apply?
Councils may initially use their existing records to find out where discounts
may apply. But some will send out forms asking for information so that they
can work out which dwellings should get discounts. If you get a form asking
about residents, completing and returning the form may speed up the award of
a discount.
When your council sends out its bills, it will have decided whether or not
a discount should be applied to the bill for your property. If the bill you
receive does not include a discount, or includes a 25% discount and you think
that a 50% discount should apply, you should write to your council explaining
why. They may ask you for further information and it is in your interests to
provide this quickly. Entitlement to discount is assessed on a daily basis and
may change if your circumstances change.
You have a statutory obligation to notify your council if a discount which
has been applied to your bill should be withdrawn or reduced. If you do not
inform the council within 21 days you may face a penalty of £50.
What evidence do I need to support a claim?
Your council will tell you what evidence you will need to provide in support
of a claim, depending on the grounds on which you are applying for a discount.
For example, students and student nurses may be asked to provide a certificate
from their college or university. Colleges have to give certificates if a student
or student nurse asks for one (provided the request is made while they are a
student or student nurse or within a year of the person ceasing to be a student
or student nurse).
What if I disagree with the council's decision on my entitlement
to a discount?
Once the council has made a calculation of your council tax, you should write
to your council giving the reasons why you think you should get a discount.
The council has two months to make a decision. If the council is still refusing
to give you a discount, or if you are given a smaller discount than you feel
you are entitled to or if it has not acted within the two month period, you
will be able to appeal to a valuation appeal committee. You must continue to
pay your original bill while your appeal is outstanding.
EXEMPTIONS
What sort of dwellings are exempt?
Some dwellings are exempt from the council tax altogether. These include dwellings
where all the residents are students and some empty dwellings.
The following paragraphs broadly explain which types of dwelling will be exempt
and where they will be exempt only for a specified length of time.
Exemptions
The following types of dwelling will be exempt:
Unoccupied dwellings, subject to a time limit
- dwellings which are unoccupied and (except in the case of dwellings owned
and last occupied by a charity) unfurnished, for up to six months. Periods
of occupation of up to six weeks within the six month period will be disregarded;
- new dwellings, for up to six months so long as they remain unoccupied and
unfurnished;
- unoccupied dwellings, which were previously occupied by students, for a
period of up to four months. Periods of occupation of up to six weeks within
the four month period will be disregarded;
- unoccupied dwellings for which liability falls to be met from the estate
of a deceased person provided that no grant of confirmation to the estate
has been made or no more than six months have passed since such a grant was
made;
- dwellings which are incapable of being lived in because of being structurally
repaired, improved or reconstructed can be exempt for up to 12 months from
the last occupation day;
Unoccupied dwellings, without a time limit
- unoccupied and unfurnished dwellings which were last occupied together with
agricultural lands;
- dwellings whose occupation is forbidden by law, or which are kept unoccupied
because of impending compulsory purchase;
- dwellings owned by a council, Communities Scotland or a Registered Social Landlord
which are being kept unoccupied with a view to demolition;
- unoccupied dwellings where the liable person was formerly resident and has
moved to receive personal care, whether in a hospital, a home or elsewhere.
The liable person must have been away for this reason since they left;
- unoccupied dwellings where the liable person has moved in order to provide
personal care to another person. The liable person must have been away for
this reason since they left;
- unoccupied dwellings where the liable person is in prison (except for non-payment
of a fine or the council tax in England and Wales). The dwelling must have
been their main home immediately before they went into prison;
- unoccupied dwellings which have been repossessed by a mortgage lender;
- certain unoccupied dwellings which are within the curtilage of another dwelling,
are difficult to let separately and for which the liable person is resident
in that other dwelling - for example, empty "granny flats" or staff accommodation
in a larger property;
- manses and similar dwellings which are unoccupied awaiting occupation by
ministers of religion;
- unoccupied dwellings where all the liable persons are students;
- unoccupied dwellings which are not the sole or main residence of anyone
other than students. The students must have lived there immediately before
taking up their course of study;
- unoccupied dwellings where the only liable person is a trustee in bankruptcy;
Dwellings which may be occupied
- dwellings which are the sole or main residence only of people under the
age of 18 years;
- dwellings occupied only by students and student halls of residence;
- dwellings used as trial flats by registered housing associations;
- dwellings owned by the Secretary of State for Defence and held for the purpose
of armed forces accommodation (though payments in lieu of council tax will
be paid in respect of these dwellings).
What should I do if I think my dwelling is exempt?
If you own, or live in, a dwelling which you think might be exempt, you should
write to your council setting out the reasons why you think it might be exempt
and giving as much information as possible to support your case.
Will I get a bill for an exempt dwelling?
If you own one of these types of dwelling you should not receive a council
tax bill for it, but the council will send you information to let you know the
valuation band for the property and what the council tax would be if it were
not exempt.
If the council notifies you in writing that it believes your property is exempt,
but you realise that it should not be, you must write and tell the council or
you may face a penalty.
What can I do if the council says my property is not exempt?
If the council decides your dwelling is not exempt and you disagree, you should
write to the council giving the reasons why you think your property should be
exempt. The council has two months to provide an answer. If you still disagree
with the council, or if it has not acted within the two month period, you will
be able to appeal to a valuation appeal committee. You must continue to pay
your original bill while your appeal is outstanding.
HOW CAN I FIND OUT MORE?
This leaflet covers the main aspects of liability for the council tax. It does
not cover every detail and should not be regarded as a comprehensive statement
of the law.
If you need further information you should contact your council.
If you have general enquiries about the council tax you can write to:-
Council Tax Enquiries
The Scottish Executive
Area 3-J
Victoria Quay
EDINBURGH
EH6 6QQ
Last Updated December 2004
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