Council Tax

Council  Income Tax

Lower Council Tax for Basic Money  

COUNCIL INCOME TAX 
ENGLAND and WALES, 
The Shetland & The Orkneys 
  • Council income tax of 1 per cent per person, to maximum of two adults in each home. Keeping 100 per cent exemption for severely mentally impaired people and
    full-time students. 

  • Disabled Band Reduction Scheme of
    17 per cent reduction below 1 per cent
    Council Income Tax. 

  • Council income tax of  2.5 per cent for second home, from highest earner adult in your full-time first residence. 

  • Council Income tax rate to remain the same permanently.

  • Stop current Council Tax from start of new government 2025 til April 2026, to give national tax office (HMRC) time to move to council income tax system, kept in ring fenced national fund for council budgets alone and shared out to each council. 
  • Same national basic income tax allowance threshold for start of council income tax (increased to £15,230 - April 2025).
  • From April 2026, national income tax would increase by £500 allowance each year. 
  • In April 2025, from age 50, return of higher age related tax allowance of £3,000 on top of your personal income tax allowance.
  • 45p, 50p and 55p income tax tiers, would get only £250 per personal tax allowance increase each year.



BACKGROUND 

If your home is already in the lowest band (Band A), you’ll get a 17% discount on your Council Tax bill instead.

You’ll have to show that you have either:

an extra bathroom, kitchen or other room that you need for the disabled person
extra space inside the property for using a wheelchair.

Discounts for severely mentally impaired people
You might be able to apply for a discount on your Council Tax bill if you or someone you live with is severely mentally impaired.

You’ll need to:

  • get a certificate to say you’re severely mentally impaired from a medical professional, such as your GP
  • prove your eligibility for certain benefits - check with your local council
  • If you qualify as severely mentally impaired You’ll get a 100% discount if you qualify as severely mentally impaired and one of the following applies:

  • you live on your own
  • any other adults in your household either qualify as severely mentally impaired or are full-time students
  • There’ll be a 50% discount on the council tax bill if everyone else in your household is ‘disregarded’.

If you live with someone who is severely mentally impaired

  • You’ll get a 25% discount if you live with someone who qualifies as severely mentally impaired and either:

  • there are no other adults in your household everyone else in your home is disregarded.
Some examples of severe mental impairment (SMI) include:

  • Alzheimer’s disease
  • Schizophrenia
  • Dementia

They must be in receipt of one of the following benefits:

  • Incapacity Benefit
  • Attendance Allowance
  • Severe Disablement Allowance
  • Disability Living Allowance (higher or middle-rate care component)
  • An increase in disablement pension where constant attendance is needed
  • Unemployability Supplement or Allowance
  • Constant Attendance Allowance
  • Income Support (which includes a disability premium)
  • Personal Independence Payment (standard or enhanced daily living component)
  • Armed Forces Independence Payment. 
Their condition must be confirmed by a doctor.

Related Policies

Share by: