Occupied properties

Occupied properties exemptions

An occupied property can be exempt from council tax. This is called an occupied property exemption. A property will qualify for this exemption as long as it is occupied by (or in some cases intended to be occupied by) certain groups of people.

Class M - Student halls of residence

Halls of residence for students may be exempt provided the accommodation is:

  • owned or managed by a:
    • prescribed educational establishment or
    • body established for charitable purposes only or
  • subject to an agreement in which an educational establishment has nominated the majority of residents as students.

Class N - Occupied only by students

If a property is only occupied by qualifying students, then a Class N exemption may apply.

If any of the qualifying students have their non-British spouse or dependants living with them, an exemption is still applicable.

Class O - Occupied by armed forces personnel

A property which is occupied by armed forces personnel may be exempt from council tax.

Class P - Occupied by visiting forces personnel

A property which is occupied by visiting forces personnel or their dependants may be exempt from council tax.

Class S - Occupied by under 18s only

If everyone living at your address including you is under 18 years of age, you may not have to pay council tax.

Class U - Severely mentally impaired

A property is exempt from council tax where the only adult resident or all the adult residents are severely mentally impaired. Please go to our council tax discounts page for more information.

Class V - Occupied by diplomats

A person is disregarded for council tax if they are a diplomat and/or benefit from diplomatic immunity.

If the person with diplomatic immunity is legally liable for council tax, and there is nobody else in the property with equal or greater interest in that property, then a Class V exemption is still applicable.

Class W - Occupied annexes

Before April 2014, annexes were subject to a council tax bill separate from the main house.

From 1 April 2014, annexes may be entitled to a 50 per cent reduction in council tax, which are:

  • used by the occupier of the main house as part of the main home, or
  • occupied by a relative of the person living in the main house.

The 50 percent reduction is on top of any other discount you or your relative may be entitled to. For example, if your adult son is living in the annexe on his own, he will be liable for council tax and be entitled to a 25 per cent single occupier discount and a 50 percent annexe discount.

The criteria for the annexe discount is:

  • the annexe must form part of a single property which includes at least one other property. ie. the annexe must be within the grounds of the main house (not necessarily attached) and must be included in the title deeds of the main house and not registered separately
  • and either:
    • the annexe is being used by the resident of the main house, as part of their main home, or
    • the annexe is lived in by a relative of the person who lives in the main house. For this purpose a relative is defined as: a partner, parent, child, step-child, grandparent, grandchild, brother, sister, uncle, aunt, nephew and niece (also includes great-grandparent, great-grandchild etc. and great-great-grandparent etc).