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

An ‘annexe’ is defined in Council Tax regulations as a dwelling which forms part of a single property which includes another dwelling and which may not be let separately from that other dwelling without a breach of planning controls. 

Occupied annexes are exempt if occupied as the home of a dependent relative of a person living in the main dwelling.

A relative is to be regarded as dependent if they are:

  • Aged 65 years or more
  • Under 65 but severely mentally impaired
  • Under 65 but substantially and permanently disabled

The following are ‘relatives’ for the purpose of the exemption:

  • Spouse;
  • Parent, child, grandparent, grandchild, brother, sister, uncle or aunt, nephew or niece, great-grandparent, great-grandchild, great-uncle, great-aunt, great-nephew or great-niece.

If your annexe is occupied by a relative but you do not qualify for the Class W exemption, you may be entitled to a discount - check out the Annex Discount.