Claims Handbook Logo

Council Tax Refunds & Discounts

Overpaying council tax? You could be owed hundreds back.

#At a Glance
Difficulty ā­ Easy
Time to DIY 30 minutes
Potential Saving Ā£100ā€“Ā£1,000+ per year
Time Limit Refunds back to 1993 possible
Escalation Valuation Tribunal

#What Is It?

Council tax is based on property bands (Aā€“H in England, Aā€“I in Wales). You might be overpaying if:

  • Your property is in the wrong band
  • You're missing discounts you're entitled to
  • You qualify for exemptions you don't know about

Unlike most claims, you can get refunds going back decades if you've been in the wrong band.

#1. Wrong Council Tax Band

#How to Check Your Band

  1. Go to Check your Council Tax band
  2. Enter your postcode
  3. Compare your band with similar neighbouring properties

#Signs You May Be Over-Banded

  • Neighbours in similar properties pay less
  • Your property was valued incorrectly in 1991
  • Extensions or conversions have been removed
  • The property has been split into flats

#How to Challenge

  1. Contact your local council first (informal challenge)
  2. If rejected, appeal to the Valuation Office Agency (VOA)
  3. Further appeal to the Valuation Tribunal (free)

Warning: Your band could go UP as well as down. Only challenge if you're confident.

#2. Discounts You May Be Missing

Discount Reduction Eligibility
Single person discount 25% Only one adult in the property
Full-time student exemption 100% All residents are full-time students
Severe mental impairment 25ā€“100% Person with cognitive impairment (e.g., dementia)
Carer discount Varies Living with someone you care for
Disabled reduction Drop 1 band Property adapted for disabled person
Empty property discount Varies Property unoccupied (time-limited)

#Single Person Discount (25%)

You qualify if:

  • You're the only adult (18+) living in the property
  • OR other residents are "disregarded" (students, carers, severely mentally impaired)

How to claim:

  • Apply online via your council's website
  • Usually takes effect from date you qualified
  • Councils can backdate if you missed out

#Severe Mental Impairment Discount

Huge untapped discount. If someone in your home has a cognitive impairment (dementia, severe learning disability, brain injury, etc.), they may be "disregarded" for council tax.

This means:

  • If they live alone: 100% exemption
  • If they live with one other adult: 25% discount
  • Can be backdated indefinitely

To qualify:

  • Medical professional certifies the impairment
  • Person must be entitled to certain benefits (PIP, Attendance Allowance, etc.)

#Disabled Band Reduction

If your property has been adapted for a disabled person, you may be entitled to pay one band lower.

Adaptations that qualify:

  • Extra bathroom or kitchen for the disabled person
  • Wheelchair access room
  • Sufficient floor space for wheelchair use

How to claim:

  • Contact your council with details of the adaptation
  • They may inspect the property

#Step-by-Step: Claiming a Refund

#Step 1: Check What You're Entitled To

  • Review band comparison
  • Check if you qualify for discounts
  • Calculate how much you may have overpaid

#Step 2: Contact Your Council

  • Call or visit council tax department
  • Explain what you believe you're owed
  • Ask them to review and backdate

#Step 3: Appeal If Rejected

  • Band challenges: VOA then Valuation Tribunal
  • Discount disputes: Council's appeals process, then Valuation Tribunal

#How Far Back Can I Claim?

Type Backdating
Wrong band Back to 1993 (when council tax started)
Single person discount Usually to when you qualified (council discretion)
SMI discount Indefinitely (no time limit)
Disabled band reduction From when adaptation was made

#Common Questions

Q: What if my band challenge makes my band go UP?

It's rare, but possible. Only challenge if you're confident your band is too high. Check neighbours carefully first.

Q: I've been paying the wrong amount for 20 years ā€“ will they really refund it all?

For wrong bands, yes ā€“ potentially back to 1993. For discounts, it depends on council policy, but SMI can be backdated indefinitely.

Q: The council says I need proof ā€“ what do I need?

Depends on the discount. Single person: declaration. SMI: medical certificate + benefit evidence. Disability: adaptation details.