Class U – Property occupied only by a severely mentally impaired person (SMI)

A Class U exemption applies when a property is occupied only by a person (or persons) who is severely mentally impaired (SMI).

Under Council Tax law, an individual who is certified as SMI is not counted as a liable person, and if all residents are SMI, the property is fully exempt from Council Tax.

This exemption safeguards vulnerable people who cannot manage financial responsibilities due to significant mental impairment.

A property qualifies for Class U when all of the following conditions are met:

• The property is occupied. Class U is an occupied‑property exemption, not an empty‑property exemption.
• All residents are certified as severely mentally impaired (SMI). This includes:
  • Adults
  • Young people aged 18 or over
  • People living alone or with others who are also SMI
  • Each SMI resident has a valid medical certificate
• A registered medical practitioner (usually a GP or specialist) must confirm that the person is severely mentally impaired.
• Each SMI resident is entitled to a qualifying benefit. The person must be eligible for at least one of the following, including but not limited to:
  • Attendance Allowance
  • Severe Disablement Allowance
  • Personal Independence Payment (PIP) — daily living component
  • Disability Living Allowance (middle or higher rate care)
  • Employment and Support Allowance (ESA)
  • Universal Credit (limited capability for work‑related activity element)
  • Incapacity Benefit
  • Constant Attendance Allowance
  • Armed Forces Independence Payment
• The benefit does not need to be in payment yet – entitlement is what matters.

Definition of “Severely Mentally Impaired” (SMI)

For Council Tax purposes, an individual is SMI if they have a severe and permanent cognitive impairment that affects intelligence and social functioning.

Conditions may include (but are not limited to):

• Dementia (all forms)
• Alzheimer’s disease
• Severe learning disabilities
• Brain injury or neurological disorders
• Severe mental illness causing permanent impairment

Diagnosis must be confirmed via the medical certification process.

A Class U exemption cannot be awarded if:

• A non‑SMI adult lives in the property. If any resident is not certified SMI, Class U does not apply. However, the SMI resident may still receive a Council Tax disregard, which can reduce the bill instead.
• The property is unoccupied. Empty properties are not covered by Class U. An empty home may fall under other exemption classes instead.
• An SMI certificate is not provided. Without formal medical confirmation, the exemption cannot be applied.
• The SMI resident is not entitled to a qualifying benefit. Entitlement to an eligible benefit is a legal requirement.

For as long as:

• All residents remain severely mentally impaired, and
• The property remains occupied only by those residents, and
• Each SMI resident continues to meet the qualifying conditions.

There is no maximum time limit.

The exemption ends immediately if:

• A non‑SMI adult moves into the property
• One or more residents lose SMI status (e.g., certificate withdrawn)
• The resident(s) no longer qualify for the required benefits
• The property becomes unoccupied

If you want to apply for a Class U exemption or have a question

Use the Council Tax contact form and choose the following options:

• Under which service would you like to contact us? Select Council Tax
• What would you like to contact us about? Select Something else