Council Tax exemptions

Properties occupied only by full‑time students and severely mentally impaired (SMI) persons

A property can be fully exempt from Council Tax when it is occupied only by a mixture of full‑time students and people who are severely mentally impaired (SMI).

This exemption exists because both groups are legally classified as “disregarded persons” for Council Tax purposes.

Where all residents are disregarded, the property is treated as having no countable adults  and is therefore exempt.

Why does this exemption exist?

Under Council Tax law:

• Full‑time students are disregarded. They are not counted as adults for Council Tax purposes.
• Severely mentally impaired persons are disregarded. They are legally treated as non‑liable because of their condition and qualifying benefit status.

When all residents fall into one or both of these disregard categories, there are zero chargeable adults in the property therefore, the property becomes exempt.

Who qualifies?

A property qualifies when every resident is either:

• a full‑time student, or
• a person who is severely mentally impaired (SMI) and meets the legal criteria

AND

• No non‑student, non‑SMI adult lives in the property.

If everyone living in the property is disregarded, the household is fully exempt.

Full‑time student requirements

A resident counts as a full‑time student when they meet the legal course criteria, typically:

• A course lasting at least one academic year, and
• At least 21 hours of study per week,
• OR for under‑20s, a qualifying course with 12+ hours of supervised study.

Students must have valid student status certificates from their educational institution.

Severely mentally impaired (SMI) requirements

A person is classed as SMI for Council Tax when:

• A registered medical practitioner certifies severe and permanent mental impairment, and
• They are entitled to a qualifying benefit, such as Attendance Allowance, ESA, PIP (daily living), DLA (middle/high rate care), etc.

Once certified and eligible, the person is formally disregarded for Council Tax purposes.

Who does not qualify?

This exemption cannot apply if:

• A non‑student, non‑SMI adult lives in the property (e.g., working adult, retired adult not SMI, partner, friend, lodger)
• An SMI resident lacks the required medical certificate or benefit entitlement
• A student loses full‑time status (for example, drops out or switches to part‑time)
• The property becomes unoccupied (another exemption class may apply instead)
• A dependent child over 18 lives there but is not a student or SMI

Even one non‑disregarded adult makes the property chargeable.

How long does the exemption last?

Indefinitely, as long as:

• All residents remain full‑time students or SMI, and
• No other adults move into the property.

The exemption ends immediately when:

• A resident stops being a student (course ends, drops out, becomes part‑time)
• An SMI resident loses benefit entitlement or certification
• A non‑disregarded adult moves in
• The property becomes unoccupied

Contact us

If you want to apply for a Mixed Household 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