Discretionary reductions of council tax

In addition to a local authority's main council tax reduction scheme, each local authority has discretion to reduce the amount a person is liable to pay for council tax.[1]

This discretionary reduction can be used to reduce a person's council tax liability by any amount, including to nil.[2]

The discretionary reduction scheme is separate to any reduction the household is entitled to for disabled residents. Read more about disability reductions for council tax on Shelter Legal.

When a local authority can apply a discretionary reduction

A discretionary reduction can be applied whether or not a person is entitled to a reduction through council tax support.

A local authority must consider every application for a discretionary reduction on its merits, even if they have a policy on how discretionary reductions will be made.

A local authority should consider applying a discretionary reduction if an applicant has a deficit budget based on reasonable expenditure.[3]

Read more about council tax support on Shelter Legal.

Details of how to apply for a discretionary reduction must be included in a local authority's council tax reduction scheme.[4]

There is no prescribed form for making an application for a discretionary reduction. The application can be made by letter, or the local authority might specify a dedicated email address.

An application for a discretionary reduction must be dealt with fairly by the local authority. It must follow its own policies when arriving at a decision.

A local authority's failure to follow its policy, or have a policy at all, could form the basis of a complaint to the Local Government and Social Care Ombudsman.

Read more about Local Government Ombudsman complaints on Shelter Legal.

Valuation Tribunal appeals

Appeals about a local authority's decision in a discretionary reduction case are dealt with by the valuation tribunals.

Read general information about the process for Valuation Tribunal appeals for council tax on Shelter Legal.