Terms & Conditions

[Anonymous]

We have a childrens home registered for Council Tax occupied by under 18 year olds and therefore awarded the relevant exemption class S. It is normally occ by 12-17 year olds but as a off one of the residents has now turned 18 and is a student & SMI. What exemption or discount disregard would apply?

[Anonymous]

I believe the 18 year old will now be liable for the Tax BUT will qualify for an exemption under class U – Dwellings Occuppied by the Severely Mentally Impaired (if he is SMI as you state).

The problem will arise if anyone else turns 18 as they could then be liable for the tax – unless they are a qualifying student. In which case the exemption U will still apply (SI 1999/536).

[gerryg]

Something else to consider here is who you are holding as the liable person, as that affects what reduction you are going to give.

If you consider the childrens home to be a care home under the Care Standards Act 2000 and are holding the owner liable by virtue of the Council Tax (Liability for Owners) Regulations (as amended) 1992 then class U exemption does not apply.

Class U only applies where the SMI person would themselves be liable.

[i:7f9399b42d](1) a dwelling occupied only-

(a) by one or more severely mentally impaired persons, where, but for this Order, either such a person, or a relevant person, [b:7f9399b42d]would be liable to pay the council tax[/b:7f9399b42d][/i:7f9399b42d]

If you are holding the owner liable then the best you could give would be 50% discount as the only resident would be disregarded.

If it doesn’t fall into the definition of a care home then you may have to consider if it is a dwelling in multiple occupation and therefore be holding the owner liable with the same end result of a 50% discount.

[Author]

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