Student exemptions from council tax
A student in higher education is normally exempt from paying council tax to their local authority if they live in a property occupied solely by other students.
When someone is classed as a student
A student is anyone undertaking a full-time course of education. A full-time course lasts for either an academic or calendar year, during which the student must spend at least 24 weeks in study, tuition, or work experience.
A person could be classed as a student if they are:[1]
studying for an undergraduate or postgraduate degree
an apprentice working towards a qualification
on an accredited youth training scheme
a foreign language student
a student nurse
Where the student attends higher education
A prescribed educational establishment includes any establishment anywhere in England, Wales, Scotland, or Northern Ireland established solely or mainly for the purpose of higher or further education.[2]
That includes universities and colleges, performing arts schools, trades colleges, and foreign language schools.
Nursing, health and midwifery colleges are included as educational establishments.[3]
Ministry of Defence training establishments are not included in the definition of an educational establishment for council tax.
How long they are classed as a student
The person is entitled to be classed as a student from the day they begin the course, until they complete it, abandon it, or are dismissed from it. The person is still a student for any holidays between the first and last day of the course.
Entire dwellings exempt from council tax
Some properties are exempt from council tax entirely. Students who live in halls of residence, a HMO, or who rent privately with other students do not normally have to pay the tax.
Student halls of residence
Student halls of residence are automatically exempt from council tax under Class M.[4]
Private rented accommodation
An entire property can be exempt from council tax if everyone living in it is a student under Class N.[5] This is often the case for students who live together in private rented accommodation.
Certain other people living in the household who are not students do not affect the student exemption. They include:
people aged under 20 for the summer after they cease education
a spouse or civil partner of a student who is prevented from working by immigration rules
a relevant Ukrainian person
Houses in Multiple Occupation
The landlord of a house in multiple occupation (HMO) is the liable person for council tax.[6]
The HMO is classed as a single dwelling whether the occupiers are given individual tenancies or not.
The occupiers cannot be billed for council tax by the local authority. The landlord might make it a term of the tenancy that the occupiers are students so that the property can benefit from the Class N exemption.
Find out more about when a rented property is classed as an HMO on Shelter Legal.
Students living with non students
A student might decide to live with someone who is not a student, for example a partner, family member of friend.
In other cases, a student in a household containing only students might leave their course early.
Student discounts
A student is disregarded for council tax if they live with someone who is not a student.[7] That means the household might be entitled to a 25% discount if the other person is the only occupier counted for council tax.
Households with students who leave their course early
The property is only exempt from council tax if everyone is a student. If one or more people cease to be students, the property ceases to be exempt under Class N.
This can happen when a student leaves or is dismissed from their course part way through the academic year.
Because there are still students in the property, the household will receive a 25% discount on their bill. There can only be one 25% discount per property, regardless of the number of students. If more than one person is not a student, the household receives no discount.
Student liability for the council tax bill
A student could be liable for the household's council tax bill even if they are disregarded for the local authority calculation.
Liability for the bill is set out in the hierarchy of liability contained in section 6 Local Government Finance Act 1992. Students named on their tenancy agreement are normally jointly liable for council tax unless they live in an HMO.
Ex-students who move out of their accommodation could still be liable for rent and council tax if they do not end their tenancy correctly.
Find out more about liability for council tax on Shelter Legal.
Council tax support
A student who is liable for the bill might be able to get financial help to pay.
Find out more about council tax support on Shelter Legal.
Last updated: 23 December 2024