Student Council Tax Exemption

csah27

I am a full-time student living in a flat with one other non-student. I have a student exemption from the council which gives us a 25% discount on our council tax, but was wondering if this *legally* makes me exempt from paying any of the council tax?

Also, according to the council tax bill we received, the 25% discount only comes off the council tax NOT the water and sewerage charges. I have lived in all-student flats before and thought that students were not liable to pay water/sewerage as well as council tax?

Any advice??

devildog

Students are exempt from council tax and quite rightly a 25% discount has been given. With regards to legality-What was the agreement between you and other flat mate(or the tenancy agreement) when you took on the tenancy?

Re the water and sewerage charges, these have nothing to do with the Council, they are utility bills just like phone/electric/gas etc and need to be paid for. In halls, usually all utilities are included in the price and SOMETIMES (but very rarely) in rented accomodation water and sewerage charges will be factored into the rent price but usually all utilites are down to the tennants.

CIS

I am a full-time student living in a flat with one other non-student. I have a student exemption from the council which gives us a 25% discount on our council tax, but was wondering if this *legally* makes me exempt from paying any of the council tax?

Unless you have a higher interest in the property then the other occupier then you are disregarded for council tax purposes and the other person is liable for the council tax charge on the property. (What ever personal agreement you have is separate to this).

DreamerV

csah, where are you living? In Scotland, water and sewerage are lobbed onto the council tax bill so students don't pay water/sewerage charges either there. I got a shock when I moved to England and started studying here and have to pay so much for water/sewerage. Wherever in the UK you are, you are exempt from council tax. Although I'd assume a non-student wouldn't want to move in with a student, as they'd pay 75% rather than 50% each if they moved in with another non-student. Otherwise the student would pay some of the 75%, but I don't see why they'd want to move into a situation where that would be the case.

agrinnall

When I became a student again for a year and shared a flat with a non-student I just shared the CT bill with him, as DreamerV says, it would be unreasonable to expect the other person to pay 75% of the full bill when they could have another non-student as flatmate and only pay 50%. But of course CIS is correct with the strictly legal position.

Fire_Fox

Technically it's a disregard or discount I think, if you are both tenants you are both liable for the full amount if it is not paid. I was actually more liable when living with my ex even tho I was a full time student for a while because I am also the homeowner! Needless to say every so often I checked the online account to see had been paid.

"If only one person lives in a property they will be the liable person. If more than one person lives there, a system called the hierarchy of liability is used to work out who is the liable person. The person at the top, or nearest to the top, of the hierarchy is the liable person. Two people at the same point of the hierarchy will both be liable.

The hierarchy of liability is:

a resident owner-occupier who owns either the leasehold or freehold of all or part of the property
a resident tenant
a resident who lives in the property and who is a licensee. This means that they are not a tenant, but have permission to stay there
any resident living in the property, for example, a squatter
an owner of the property where no one is resident."
http://www.adviceguide.org.uk/england/tax_e/tax_council_tax_ew/council_tax.htm


Although this suggests different (NB I was definitely named on the bill and AFAIK council did not know I was the homeowner)

"Exemption for full-time students

Any household that consists solely of full-time students (that is students studying for at least 21 hours each week for a calendar or academic year) is exempt from paying council tax.

Your university or college will provide you with a certificate that you must send to your local authority immediately.

Where a household is a mixture of students and non-students, the exemption does not apply, although you may be entitled to some reduction so keep your certificate.

Households consisting of students and people in employment

Students are disregarded when the Council Tax bill for a household is calculated if they live with non-students who are working.

So if two students share a house with one non-student, the bill is worked out as if only one person lives there and a 25% discount is granted. Even if five students shared with one non-student the bill would be the same, because only the one person would be counted.

If two or more non-students live in a household, there is no discount or reduction.

Joint and several liability

Joint and several liability usually applies to any household where more than one person shares the property either as joint owners or joint tenants. It means that all of the occupants are jointly responsible for paying the bill.

From 1 April 2004 the legislation regarding joint and several liability changed, affecting the way students are registered for council tax. Where a household is occupied solely by students, all occupiers will appear on the exemption notice issued. It is very important therefore that everyone living in the property registers so that all of the names appear on the notice.

When an exemption or discount comes to an end for any individual(s), any council tax due for payment is the responsibility of the non-students only, and they will be named on the bill."
http://www.lewisham.gov.uk/myservices/counciltax/reductions/Pages/council-tax-for-students.aspx

CIS

Technically it's a disregard or discount I think,

Its a disregard. If parties in a property are disregarded then this can give rise to a discount or exemption.

I was actually more liable when living with my ex even tho I was a full time student for a while because I am also the homeowner!

You shouldn't have been - a spouse or partner is given the same level of interest in the property as you e.g. they are treated as joint owner. As there were 2 people on he same level of the 'hierarchy of liability' you should have been disregarded and your partner given made liable. (This would apply only whilst the partner is resident).

It's all covered under section 6 of the local government finance act 1992 (as amended by the 2003 act).

Fire_Fox

CIS wrote: »

You shouldn't have been - a spouse or partner is given the same level of interest in the property as you e.g. they are treated as joint owner. As there were 2 people on he same level of the 'hierarchy of liability' you should have been disregarded and your partner given made liable. (This would apply only whilst the partner is resident).

It's all covered under section 6 of the local government finance act 1992 (as amended by the 2003 act).

Sorry my wording was unclear. I am the homeowner, the word 'also' referred to as well as being a full time student. My ex was a resident but had no financial interest in my flat, so I was higher up the hierachy.

CIS

My ex was a resident but had no financial interest in my flat, so I was higher up the hierachy.

A resident spouse or partner automatically assumes the same interest in the property for council tax purposes (irrespective of any actual legal interest in the property).

csah27

Yes I live in Scotland- have already contacted the council to try and make sense of the water and sewerage charges because there doesn't seem to be a discount on them.

I had originally made a deal with my flatmate to pay part of the council tax, but they are trying to renege on the deal to get me to pay more, which is why I wanted to check if legally I had to!

Fire_Fox

CIS wrote: »

A resident spouse or partner automatically assumes the same interest in the property for council tax purposes (irrespective of any actual legal interest in the property).

Interesting thank you, that might be useful to know for the future (eternal student ).