A Guide for People who have Special Needs and their Carers
This leaflet gives information on the council tax and the separate water and sewerage charge for:
CHECKLIST : SPECIAL PROVISIONS WHICH MAY APPLY -
1. If a property has special facilities for a person with a disability the bill may be reduced.
2. If a person who is severely mentally impaired lives with their family or by themselves in their own home, they will not be counted as living in the home and the bill may be reduced.
3. If someone has a disability, whether the disability is mental or physical, and is being cared for in their own home by a person who is not their husband or wife the carer may not be counted as living in the home and the bill may be reduced.
4. If someone moves into a hospital or accommodation provided by a care home service in which they are receiving treatment, or a high level of care, or both for a long period they will not pay council tax. The bill for their old home may be reduced or may even be exempted.
5. If someone is on a low income, they should apply for council tax benefit. This may cover some or all of the council tax element of the bill.
Most of these special provisions arenotautomatic. Youmustlet your council know your circumstances as soon as possible if you think that any of those special provisions may apply to you.
INTRODUCTION
This leaflet explains the special provisions designed to help people with disabilities and their carers. The aim is to ensure that no one should have to pay, or give rise to, an increased council tax bill because of their need for special care arrangements.
There are special provisions relevant to people living in their own homes, by themselves or with their families, those receiving care in the community, those in hospital and some resident carers.
Who has to pay the council tax?
Where a house is someone's sole or main residence, the owner-occupier or resident tenant will usually be liable for the council tax bill. For other houses, including empty property, holiday homes, etc, the tenant or owner will normally be liable.
The owner will also be responsible in a limited number of cases in which it would be difficult to make the people living in the property liable. These include, for example, certain types of shared accommodation, accommodation within a larger house for people in domestic service, and certain property owned by religious orders. If you live in shared accommodation where the landlord is responsible for paying, you might be asked to pay a contribution towards the bill as part of your rent.
In many cases one person alone will be liable for the council tax in respect of a house. But where two or more people are joint owners or joint tenants they will be jointly liable for the council tax regardless of whether the bill is sent to them in their joint names or just to one of them. Where a liable person is living in the dwelling with their husband or wife then, generally, both will be jointly liable for the council tax bill. This also applies to a man and woman living together as husband and wife. There are, however, special arrangements which limit the application of the joint and several liability provisions for people who are severely mentally impaired and these are described later on in this leaflet.
The water and sewerage charges are collected with the council tax by Councils, on behalf of Scottish Water. All rules applying to liability for council tax apply to the water and sewerage charges, except where different provisions are described (in relation to benefit - see under Council Tax Benefit).
How can I tell who is liable?
There will be 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. a resident who owns the property;
b. a resident who is a tenant;
c. a resident who is a statutory, statutory assured, or secure tenant;
d. a resident who is a sub-tenant;
e. any other resident;
f. 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.
Generally the 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 be liable for the council tax if the landlord lives in the same dwelling.
DISCOUNTS
The council tax is based mainly on property values and the assumption that there are 2 adults in each household. There is a 50% reduction for homes which are empty and a 25% reduction for homes where only one person lives. Some people are treated as not living in their house so that they can benefit from these discounts. These special rules are relevant for people who are severely mentally impaired, some carers and people who are resident in hospitals, 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 WITH SUBSTANTIAL AND PERMANENT DISABILITIES
What are the special provisions to help people with substantial and permanent disabilities?
There are 2 special provisions:
• houses will be valued in a way which prevents any special alterations that have had to be made from increasing the valuation of the property for the purposes of the tax
• there is a special scheme which reduces the bill on certain houses with accommodation which is specially required and designed to meet the needs of a person with a disability.
These are explained in more detail below
Valuation of altered homes
Everyone's home has been valued by the local Assessor and put into one of 8 valuation bands from A to H. The size of your council tax bill depends on, among other things, which valuation band your home is in. Any fixtures which are designed to make your home suitable for use by a person who has a physical disability and which add to the value of your home will be ignored. Examples of such fixtures might be wheelchair ramps, stair lifts or special kitchen layouts. If, however, these facilities were considered to reduce the valuation of your home for the council tax this will also be taken into account. The effect of these provisions is that adapted homes will not be placed in a higher band because of their special facilities.
Special Reductions Scheme
Some people with disabilities need extra space in their home and there is a special scheme under which the council tax bill for a property may be reduced if it has certain features required for the special needs of an adult or child living there who has a substantial and permanent disability.
How do I know if I am eligible for the Special Reductions Scheme?
To be eligible, you must be the person who is liable to pay the council tax for your home. It must be the sole or main residence of at least one person who has a substantial and permanent disability and must contain one of the following features.
These features are:
• an additional bathroom or kitchen for the use of the person with the disability; or
• a room other than a bathroom, kitchen or toilet which is used mainly by the person with the disability. For example you might get a reduction if you have an extension or an extra room used for housing dialysis equipment or a wheelchair, or if you have a room on the ground floor in a property with two or more floors which is used as a bedroom specifically by the person with the disability; or
• extra space inside your home to allow for the use of a wheelchair which is necessary to help the person with the disability get around.
When considering whether a reduction should apply, your council will have to satisfy themselves that the alterations are essential or of major importance to the well-being of the person with the disability. To qualify for a reduction, an extra room need not be specially built - it could be an existing room used specifically to meet the special needs of the person with the disability.
By how much will the bill be reduced?
So that homes in valuation bands B to H do not attract higher council tax bills than they otherwise would because they have been adapted for the special needs of a person with a disability, there will be a one-band reduction in their bills. If your home is eligible, your bill will be reduced to that of a property in the valuation band immediately below the band in which your home is shown on the valuation list. For example, if your home is in band D, your bill will be reduced to that for a band C dwelling. This will not, however, affect the value of your home or its banding on the valuation list. In this example, it would still be shown as band D on the valuation list. If your home is in band A, it will also be eligible for a reduction in the council tax bill. The reduction will be equivalent to one ninth of the band D charge. This will have the effect of a one-band reduction to band A, had a lower band existed.
How do I apply for a reduction?
Occupiers of homes in bands A to H who feel that their home may qualify for a reduction should write to their council. The council will send an application form and may ask for other information to support the claim. For example, you may need to provide a letter from your doctor, or someone like an occupational therapist or social worker, saying that the person with the disability needs the extra space or room because of it.
What can I do if the council won't reduce the bill?
Once the council has made a calculation of your council tax, you should write to them giving the reasons why you think your home qualifies for a reduction. The council has two months to make a decision. 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. Details of how to appeal appear in a separate Scottish Executive leaflet. You must continue to pay your original bill while your appeal is outstanding.
PEOPLE WHO ARE SEVERELY MENTALLY IMPAIRED
If you are severely mentally impaired you will be treated as not living in your home when the council counts the number of adults resident in your household. The council needs to know the number of adults resident in order to determine whether or not the bill should include a discount. Any discount will depend on how many other adults there are in your home. If you are severely mentally impaired and live with 2 or more adults, the bill will not be reduced. If you live with one adult, the bill will be reduced by 25%. If you live alone your home will be exempt. For council tax purposes, you will be regarded as severely mentally impaired if you have, for whatever reason, a severe impairment of intelligence and social functioning which appears to be permanent. This includes people who are severely mentally impaired as a result of a degenerative brain disorder such as Alzheimer's disease, a stroke or other forms of dementia. In order not to be counted you must also be entitled to one of a number of benefits.
The qualifying benefits are:-
• incapacity benefit
• attendance allowance
• severe disablement allowance
• highest or middle rate care component of a disability living allowance
• an increase in the rate of disablement pension for constant attendance
• a disabled person's tax credit
• unemployability supplement
• constant attendance allowance
• unemployability allowance
• Pension Credit which includes a disability premium
Severely mentally impaired people eligible for qualifying benefits will continue to be disregarded when they reach pensionable age.
A severely mentally impaired person who is the partner of a jobseeker whose jobseeker's allowance is increased on the grounds of that person's incapacity for work may qualify for the purposes of the discount.
You will also require a certificate from a doctor to confirm that you are severely mentally impaired.
If you are severely mentally impaired and are the sole owner/occupier or tenant your home will be exempt. You will not be jointly liable if you live with your husband, wife or partner (unless you are the sole owner or tenant of your home). You will not be jointly liable if you are a co-owner or co-tenant.
Example A
A single man lives alone and is severely mentally impaired. The property will be exempt and there will be no council tax bill.
Example B
Husband and wife are co-owners. The wife is severely mentally impaired, the husband is not. The husband will be liable to pay the council tax bill for their home. The wife will not be held jointly liable because she is severely mentally impaired. The bill will be reduced by the single person discount (25%) because the wife will not be counted and the husband will be treated as a single person.
Example C
Husband and wife live together in their property. The wife is severely mentally impaired and is the sole owner of their home. They will be jointly liable to pay the council tax bill. In this case the bill will be reduced by the single person discount (25%) as only the husband will be counted.
Example D
Two brothers live together and are both severely mentally impaired. They are co-owners of their home. The property will be exempt and there will be no council tax bill.
Example E
Two people share a flat. One is severely mentally impaired and the other is a student. The property will be exempt and there will be no council tax bill, as a student is equally disregarded from the calculation when determining the number of adults in the flat.
CARERS
The section on discounts is relevant to this section.
There are special provisions which recognise the special position of those who go to live and care for someone else.
• You will not be counted towards the number of adults in the household if you live with, and care for, in their home, a person with a disability who is entitled to but not necessarily in receipt of one of the following allowances or disablement pensions:
a higher rate attendance allowance under section 65 of the Social Security Contributions and Benefits Act 1992;
the highest rate of the care component of a disability living allowance under section 72(4)(a) of that Act;
an increase in the rate of his or her disablement pension under section 104 of that Act by an amount which is the highest amount determined in accordance with paragraph (a) of regulation 19 of the Social Security (General Benefit) Regulations 1982 or, in a case to which paragraph (b) of that regulation applies, the amount determined in accordance with that paragraph; or
an increase in a constant attendance allowance under the proviso to article 14 of the Personal Injuries (Civilians) Scheme 1983, or under article 14(1)(b) of the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 1983 (including that provision as applied, whether with or without modifications, by any other instrument).
• You must be providing care for at least 35 hours a week, on average. If the person you are caring for was previously living on their own before you moved in and was liable to pay the council tax for their home they will still receive the 25% discount for a one-person household on their bill.
• If you live with and provide care to someone for at least 24 hours per week in return for payment of up to £36 a week you will not be counted in certain circumstances. To qualify you will usually belong to an organisation like Community Service Volunteers, but you could be employed by a public body or (in certain circumstances) by the person for whom you care.
• If you have to leave your home unoccupied because you have moved in with someone in order to provide care to them, provided your home was previously your sole or main residence immediately before you moved, your home may be exempt from council tax as long as you are away for this reason.
You will be counted if you are caring for your husband or wife (or partner with whom you live as husband and wife), or your son or daughter under 18 years old.
PEOPLE RESIDENT IN HOSPITALS, OR IN ACCOMMODATION PROVIDED BY A CARE HOME SERVICE IN WHICH THEY ARE RECEIVING TREATMENT, OR A HIGH LEVEL OF CARE, OR BOTH
If you are receiving residential care there are special provisions relating to any council tax liability where you now live and to your former home. But if you are a short stay hospital patient you are still counted as resident in your normal home.
There will not normally be a council tax liability in respect of accommodation provided by a care home service; but if there is, you and the other residents receiving care will not be counted, so the bill will be calculated as though you are not living there. You will not be liable to pay the bill.
If you live in accommodation provided by a care home service you will not normally be counted as living in your former home. For example, if, after you leave, your former home only has one adult resident then the bill will be reduced by a 25% discount. The example below will show you how this works.
Example
Husband and wife are co-owners of their home and are jointly and severally liable for the council tax bill. The husband has to move into a residential hospital. His main residence is then in the hospital. His wife becomes solely liable for the council tax on their home. The bill will be reduced by the 25% single person discount. The husband will not be counted towards any council tax liability which may arise in respect of the hospital.
If, by becoming resident in a hospital or other residential institution, you leave your former home unoccupied but remain the owner or tenant, then your home will be exempt from council tax.
COUNCIL TAX BENEFIT
You may have difficulty paying the tax if your income is low. You may be able to get Council Tax Benefit of up to 100%, excluding the water and sewerage charge, if you are on Pension Credit or have a low income. This may be reduced if non-dependants are living with you. The calculation of your benefit entitlement will take into account your income and savings, excluding benefits such as Disability Living Allowance or Attendance Allowance, and the amount needed to live on, which is determined by Parliament, and which depends on personal circumstances. These personal circumstances give rise to personal allowances; these are based on age, whether someone is single or has a partner, the number of dependent children and what age they are, and premiums. Premiums are extra allowances which take account of people who have special needs. Different premiums take account of the Special needs of:-
• families
• elderly people
• people with disabilities and children with disabilities
• one parent families
Personal allowances and premiums are added together and the total is the amount needed to live on. Further details of the Council Tax Benefit Scheme are explained in a separate Department for Work and Pensions leaflet called 'A guide to Housing Benefit and Council Tax Benefit'. It is available from Post Offices, local Benefit offices and local authorities.
HOW CAN I FIND OUT MORE
This booklet covers the main aspects of the council tax as they apply to people with disabilities, people who are severely mentally impaired, those in residential care and some carers. It is intended to help you understand how you will be affected. 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 local council.
If you have any 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 August 2003