Council Tax

Reductions

Changes to discounts & exemptions from 1 Apr 2013

This page explains the changes to the reductions, discounts and exemptions to the current Council Tax that will be in place from the 1^st April 2013.

The release of the ‘Local Government Finance Bill 2012’ outlines amendments to the ‘Local Government Finance Act 1992’ which now allows councils local discretion over the implementation of certain discounts and charges applied within Council Tax.

Consultation on Local Council Tax discretion

A consultation took place between 24^th September – 30^th November 2012. To see the changes proposed by Isle of Wight Council to second home discounts and empty properties click here.

The proposals were part of a consultation, regarding the Council's Local Council Tax Support Scheme, the results of which were published on our website and formed the basis of a report taken to the meeting of the council on 16 January 2013. At this meeting, councillors considered the feedback given through the consultation.

The decision taken at the meeting on 16th January 2013 by full council was that the proposed changes to discounts and exemptions were agreed. To view the policy click here.

There are various ways in which you can reduce your Council Tax bill. You must inform the council of any change in your circumstances that might affect your entitlement to any discount or exemption showing on your bill.

To learn more about the options in reducing your council tax bill, please read the following points:

Second Homes/Empty but Furnished

Current legislation allows councils to award a discount of between 10% and 50% on second homes. Since 2004 this has been set by Isle of Wight Council at a 10% discount.
Isle of Wight Council has resolved to remove this discount and therefore from 1^st April 2013 owners of second homes will pay 100% Council Tax.

Empty Properties less than 6 months - Class C Exemption

Properties that are unoccupied and substantially unfurnished are currently exempt from Council Tax for up to 6 months, after which time if the property remains unoccupied and unfurnished it attracts a 100% empty property charge.
Government legislation abolishes the class C exemption and allows Councils discretion over the level of Council Tax discount and the time period for which it might apply to the previously exempted property.
Isle of Wight Council has resolved that from 1st April 2013 a 100% discount will apply for the first three months a property becomes empty and unfurnished. Thereafter from the start of the fourth month the full 100% empty property charge will be payable..

Properties in need of major repair or work/structural alteration to make them habitable

Properties that are classified by the council as in need of or undergoing major structural repair are currently exempt for a maximum period of up to 12 months, after which time if the property remains unoccupied and unfurnished it attracts a 100% empty property charge.
Government Legislation abolishes the class A exemption and allows councils to introduce a discount between 0% and 100% for a period not exceeding 12 months. Consequently a full 100% empty property charge will be payable from the 13 month.
Isle of Wight Council have resolved that provided a property meets the criteria, a 75% discount will apply for a period not exceeding 12 months from the date the criteria were first met. Therefore council tax charges at 25% will apply from 1^st April 2013.

Premium

Currently all properties that are unoccupied and substantially unfurnished in excess of 6 months and those in need of or undergoing major structural repair in excess of 12 months are liable for full 100% council tax charges for as long as the property remains unoccupied and substantially unfurnished.
Government Legislation enables councils to have the discretion to levy up to 50% extra where a property has been unoccupied and substantially unfurnished in excess of 2 years.
The Isle of Wight Council has resolved to implement a 50% levy resulting in a charge of 150% from 1^st April 2013.

Please Note: All other exemptions in respect of unoccupied properties remain unaltered.

Discounts

If your property is no-one's main home certain discounts can apply. A property will count as someone’s main home if it is furnished and it is the only property owned, however if you are contracted to live elsewhere then a reduction may apply.

Until 31^st March 2013 you can get 10% off your bill if your property is your second home, or it is furnished and unoccupied after you or your tenants have moved out. From 1^st April 2013 100% charge will be payable

You can get 50% off your bill if the property is a caravan pitch or boat mooring. You must send us: the full address of your main home and a copy of the latest council tax bill for your main home.

If you are applying for the 50% discount because you live elsewhere for work, you must also send us full details of where and for whom you work. If the property is a caravan pitch or boat mooring, we will need to visit for confirmation. Please provide a contact number so we can make an appointment to visit.

A 25 per cent discount applies if a property is only occupied by one adult aged 18 or over.

Some people are disregarded from Council Tax if they meet certain conditions and the following discounts may apply:

A 25 per cent discount may apply if all but one of the occupiers of a property are disregarded;
A 50 per cent discount may apply if all the occupiers are disregarded.

Examples of people disregarded from Council Tax are:

People aged over 18 who have child benefit paid for them;
some school or college leavers aged under 20;
students, student nurses and foreign language assistants;
apprentices;
people on youth training schemes;
severely mentally impaired people;
long-term residents of hospitals, residential care homes or nursing homes;
volunteer care workers;
people providing care for someone they live with;
members of religious communities;
members of international headquarters, defence organisations and visiting forces;
people who are in prison or detention (except for non-payment of fines or local taxes);
people staying in hostels or night shelters.

For further information please contact the service by using the send a message to service or fill in our online application form Council Tax - Single Occupier Discount/Disregards form, which can be found in the forms tab above.

Section 13A of the Local Government Finance Act 1992, inserted by section 76 of the Local Government Act 2003 - this gave councils new powers to create their own discounts and exemptions, including powers to grant relief on a case by case basis of between 1% & 100%. Any discount given has to be met by the council.

The council has the power to agree discounts but is not obliged to do so as Council Tax is a tax related to property and not directly to the provision of any specific services. It is not appropriate therefore, to relate the cessation, reduction or non provision of any specific services or facilities to the payment of Council Tax.

Any specific application for discount is referred to the Cabinet Member for the resources, under their delegated authority, and decision is made on the merits of the case.

Exemptions

If your property qualifies as exempt from Council Tax, you will receive an exemption notice telling you the reason for the exemption and the assumed period that the exemption applies for. A property may be exempt from council tax, usually if it is unoccupied, but also in some cases where all the occupiers are disregarded. Properties that are exempt from Council Tax fall into one or other of the following:

A The property is unoccupied, substantially unfurnished, and either uninhabitable or undergoing major structural repairs. Exempt for up to 12 months. This exemption has been abolished from 1^st April 2013.
B The property is unoccupied and owned by a charity. Exempt for up to six months.
C The property is unoccupied and substantially unfurnished. Exempt for up to six months. This exemption has been abolished from 1^st April 2013.
D The property is unoccupied because the person responsible for Council Tax is in prison (except for non-payment of fines or local taxes).
E The property is unoccupied because the person responsible for Council Tax is now living in a hospital, residential care home or nursing home.
F The property is unoccupied following the death of the person responsible for the council tax. Exemption continues for up to six months after probate or letters of administration are granted.
G An empty property where occupation is prohibited by law.
H An unoccupied property being held for a minister of religion.
I The property is unoccupied because the person responsible for Council Tax is living elsewhere to receive care.
J The property is unoccupied because the person responsible for Council Tax is living elsewhere to provide care.
K The property is unoccupied because the person responsible for Council Tax is a student living elsewhere to study.
L An unoccupied property repossessed by a mortgage lender.
M The property is a student's hall of residence.
N The property is only lived in by full-time students.
O The property is only lived in by UK armed forces.
P The property is only lived in by visiting service personnel.
Q The property is left unoccupied by a trustee in bankruptcy.
R The property is an empty caravan pitch or boat mooring.
S The property is only lived in by people aged under 18. This applies from 1 April 1995 onwards.
T The property is an unoccupied annexe of another property that may not be let or occupied separately due to planning restrictions. This applies from 1 April 1995 onwards.
U The property is only lived in by severely mentally impaired people. This applies from 1 April 1995 onwards. From 1 April 2000 onwards, this exemption class also applies to properties occupied both by severely mentally impaired people and full-time students.
V The property is lived in by at least one foreign diplomat or specified member of an international organisation. This applies from 1 April 1997 onwards.
W The property is an occupied annexe of another property and is used by a dependent relative of the person responsible for Council Tax, sometimes known as a 'granny annexe'. This applies from 1 April 1997 onwards.

Disabled Relief

A reduction can apply if there is a person living in your property who is permanently disabled - this applies to any adult or child, including the person responsible for Council Tax.

To qualify there must be a room, extra bathroom or room adapted to meet the disabled persons needs, or there must be sufficient space for the use of a wheelchair. Disabled relief reduces the charge to the same as the next band below. For example, properties in band D are charged as if they were in band C. Properties in the lowest band A will get a reduction of one ninth of band D.

If you believe you qualify for disabled relief please visit the 'forms' tab at the top of the page and complete the Disabled Relief Application Form.