Dwellings exempt from council tax
A dwelling can be exempt from council tax if it is unoccupied or vacant, used for a specified purpose, or occupied by certain categories of people.
When a dwelling can be exempt
Council tax is charged on all dwellings apart from exempt dwellings. Regulations set out classes of exempt dwellings.[1]
A dwelling could be exempt because it is:
not occupied
occupied by students
the home of someone in prison or receiving care elsewhere
Most classes of exemption are time limited.
Definition of a dwelling
A dwelling is a domestic property that is self-contained, and occupied or capable of being occupied.
Properties that are not dwellings are not subject to council tax. Business premises are subject to non-domestic rates.
Read more about what is classed as a chargeable dwelling on Shelter Legal.
How exempt dwellings are identified
Local authorities and residents are required to identify exempt dwellings.
How local authorities identify exempt dwellings
Local authorities must take reasonable steps to identify exempt dwellings each financial year. [2]
The local authority must inform the person who would otherwise be liable to pay council tax if the dwelling were not exempt.[3] The information the Local Authority must provide includes:[4]
valuation band for the dwelling
information about requesting a change to the valuation band
council tax that would otherwise be payable
common classes of exempt dwellings
The local authority must provide this information in writing as soon as reasonably practicable after identifying the exempt dwelling.[5]
The local authority is only required to send the notice to one taxpayer in cases where two or more people are jointly liable.[6]
Find out more about liability for council tax on Shelter Legal.
The local authority can supply the information about the exemption as part of a council tax bill.
Duty of residents to notify local authorities
A person who would be liable to pay council tax in an exempt dwelling must notify the local authority if they believe that their dwelling is not, or will no longer be, exempt.[7] They must do so within 21 days of becoming aware of the change in status.
The obligation to notify the local authority applies to anyone who would otherwise be liable. One person can notify the local authority on behalf of both or all liable people. [8]
The residents do not have a duty to notify the local authority if the dwelling is no longer exempt if the local authority has reduced liability to nil under a local council tax reduction scheme.[9]
Unoccupied dwellings
Unoccupied dwellings are exempt from council tax if certain criteria are met.
Unoccupied means a dwelling in which no one lives.[10]
Resident has died
An unoccupied dwelling is exempt under class F if the former resident has died and the only person liable for council tax is the administrator of the estate.[11]
This exemption applies if there was no joint owner or other occupier.
This exemption applies for up to six months after probate or letters of administration are granted.
The exemption is not affected if there is a delay in applying for probate or letters of administration.[12]
Usual occupier detained in prison, care, or hospital
An unoccupied dwelling can be exempt under class D if the owner, tenant, or licensee is detained.[13]
This exemption applies where the dwelling would be the owner, tenant, or licensee's sole or main residence if they were not detained, or was previously their sole or main residence if they were a relevant absentee.
The types of detention this exemption applies to are the same as those that apply to disregards for discount purposes.[14] They include detention:
in prison (but not for non-payment of council tax)
under immigration powers
under mental health powers
'Relevant absentee' means a person who has their sole or main residence elsewhere because they are:[15]
detained under certain circumstances[16]
in a hospital, care home or hostel receiving care or treatment [17]
receiving personal care for prescribed reasons[18]
providing certain care to another for prescribed reasons[19]
Sole or main residence in a hospital, care home or hostel
An unoccupied dwelling is exempt under class E if it was previously the sole or main residence of the owner, tenant or licensee, they have been a relevant absentee since then, and their sole or main residence is now in a:[20]
hospital
care home
hostel where they are receiving care or treatment
Resident receiving care elsewhere
An unoccupied dwelling is exempt under class I if the owner, tenant or licensee now has their sole or main residence elsewhere so they can receive personal care.[21]
The personal care must be related to:
old age
disablement
illness
past or present alcohol or drug dependence, or
past or present mental disorder
The unoccupied dwelling must have been the sole or main residence of the owner, tenant or licensee.
This exemption does not apply where the care is provided by a hospital, care home or hostel.
The owner, tenant or licensee must have been a relevant absentee for the whole time since they stopped residing at the dwelling.
Resident providing care elsewhere
An unoccupied dwelling is exempt under class J if the owner, tenant or licensee now has their sole or main residence elsewhere so they can provide personal care to someone.[22]
The personal care must be related to:
old age
disablement
illness
past or present alcohol or drug dependence, or
past or present mental disorder
The unoccupied dwelling must have been the sole or main residence of the owner, tenant or licensee.
The owner, tenant or licensee must have been a relevant absentee for the whole time since they stopped residing at the dwelling.
Mortgage lender in possession
An unoccupied dwelling is exempt under class L if a mortgage lender is in possession of the dwelling.[23]
A mortgage lender could be in possession following repossession through the court or the appointment of an LPA receiver under section 109 Law of Property Act 1925.
Trustee in bankruptcy has ownership
An unoccupied dwelling is exempt under class Q if the owner of the dwelling is a trustee in bankruptcy.[24]
Dwelling cannot be let separately
An unoccupied dwelling is exempt under class T if it is part of a single property that includes another dwelling and cannot be let separately without breaching planning control.[25]
Occupation is prohibited by law
A dwelling is exempt under class G when:
it is illegal to occupy
occupation is prohibited because of action taken under any Act of Parliament to prohibit occupation or acquire the dwelling.[26]
This exemption does not apply when an occupier has to move out temporarily following a repair notice by the local authority, because occupation is not prohibited by law.[27]
Dwelling held for a minister of religion
A dwelling is exempt under class H if it is unoccupied and kept available for a minister of any religion to reside in to perform their duties.[28]
Dwelling owned by a charitable body
An unoccupied dwelling owned by a charitable body is exempt under class B for up to six months.[29]
The owning body must have been established only for charitable purposes, and the last occupation must have furthered its aims.
A period of occupation of six weeks or less is disregarded.
Dwelling owned by students
An unoccupied dwelling is exempt under class K if it was last occupied by the owner as their sole or main residence, all owners are students and:
have been students since the last occupier ceased to reside at the dwelling or
became students within six weeks of the last occupier ceasing to reside[30]
Empty caravan pitches and moorings
Caravan pitches and houseboat moorings which are not occupied by a caravan or a boat are exempt under class R. [31]
Vacant dwellings
In England, there are no automatic council tax exemptions for vacant dwellings.
A local authority can decide to apply these exemptions in its area.[32]
In Wales, classes A and C are automatically exempt dwellings.
What is a vacant dwelling
Unoccupied and substantially unfurnished dwellings are classed as vacant dwellings.
Any one period of 6 weeks or less where the property is occupied is disregarded for classes A and C.[33]
Vacant dwellings include a pitch containing an unoccupied caravan and a mooring containing an unoccupied boat.
Dwellings vacant for up to six months
A vacant dwelling can be exempt under class C for up to six months. [34]
Vacant dwelling undergoing major repair work
A vacant dwelling requiring or undergoing major repair work or structural alteration can be exempt under class A.[35]
A dwelling can be exempt under class A for 12 months. This can include up to six months after the work has been substantially completed.
Student accommodation
Student halls of residence are automatically exempt from council tax under class M.[36]
An entire property can be exempt from council tax if everyone living in it is a student under class N. [37]
Read more about Council tax in student accommodation on Shelter Legal.
Exempt annexes
A dwelling within a property which also contains at least one other dwelling, and is occupied by a dependent relative of a person living within another dwelling in the property, is exempt under class W. [38]
An example of a dwelling which might be exempt under Class W is a 'granny flat'.
A dependent is someone aged 65 or over, or severely mentally impaired, or substantially and permanently disabled. [39]
A relative is a:
spouse or civil partner
parent or child
brother or sister
grandparent or grandchild, including great grandparents and children
uncle, aunt, nephew, or niece, including great uncles, aunts, nephews, and nieces
A relationship by marriage is treated as a blood relationship.
If a man and a woman live together as husband and wife or as civil partners, they are treated as married or in a civil partnership. A stepchild is treated as a child.
Other exemptions
Other exempt dwellings include those occupied by:
armed forces
under 18s
severely mentally impaired people
people with diplomatic immunity
Accommodation occupied by armed forces
Armed forces accommodation owned by the Secretary of State for Defence is exempt under class O. [40] This includes barracks and married quarters.
This exemption applies whether the accommodation is occupied or not.
A dwelling where at least one resident is a member (or a dependent of a member) of visiting armed forces and they are neither a British Citizen nor ordinarily resident in the UK is exempt under under class P.[41]
Dwelling occupied solely by under 18s
A dwelling occupied solely by those under the age of 18 is exempt under class S.[42]
Any relevant Ukrainian person over the age of 18 occupying the dwelling is disregarded.[43]
Dwelling occupied by people with severe mental impairment
A dwelling which is occupied solely by one or more people with severe mental impairment is exempt under class U. [44]
Certain other people living in the same household who are not severely mentally impaired do not affect this exemption. They include:
students
a spouse, civil partner or dependent of a student who is prevented from working or claiming benefits by immigration rules
people aged under 20 for the summer after they cease education
a relevant Ukrainian person[45]
Dwellings occupied by people with diplomatic immunity
A dwelling occupied by at least one person who has diplomatic immunity, who is neither a British Citizen nor permanent resident in the UK is exempt under class V. [46]
This exemption does not apply if the person with diplomatic immunity has their main residence in the UK.
Last updated: 28 March 2025