Student Council Tax

Hey,

I have a problem with council tax at my current flat with the total of 5 residents (we have a joint tenancy on the flat). My issue is that one student is in third year and has graduated this year. Our tenancy finishes at the end of August. I called the Bristol council tax office who said we are ALL liable to pay the bill that we received. He said this was because the third year student was no longer exempt as of beginning of June (when her course finished).

However, I am still and student and so is the other three tenants as we all graduate in 2024. I called Citizens Advice and they said that the third year student is 75% liable for the tax which she gets a 25% discount because she lives with students.

Now, I am leaving the flat this weekend and in theory would be liable to pay the remaining 25% (but this is split between the four students).

Personally I believe I am only liable for a fourth of 25% of the tax bill for June only. I would like to get some advice, if anyone has been in this situation before what have you done or said to the council and how can I approach this? If I do pay the bill am I protected from the other students taking action against me for the rest of the bill (up until end of August that is).

Council Tax is a property tax. That means that the amount due is based upon the property (and the characteristics of the people living in that property). Once that tax has been worked out, we then need to work out how is responsible for paying it.

No Council Tax liability exists if every occupant is a full-time student. As soon as that is not the case, then a Council Tax liability occurs - although a discount may apply. In your case, a 25% applies, because the tenant who is no longer a student is deemed to be living alone (as students are "disregarded" when they count how many people are in the property). Therefore the Council Tax liability is 75% of the "full" Council Tax.

Then we come to who is responsible for paying it. There is a hierarchy involved in this (see the "Who has to pay council tax" section of this page). In your scenario, that would be "a residential tenant" (each of whom would be liable if there is more than one). The key question, it seems, is whether all tenants are responsible for that 75% Council Tax - or are "disregarded tenants" not included?

For that we have to turn to the legislation itself (Local Government Finance Act 1992, as amended). They key part is schedule 6, "Persons liable to pay council tax", and in particular subsections (3) and (4). (The reference to subsection (2) basically says that a person who is "resident of the dwelling" is liable".)

"(3) Where, in relation to any chargeable dwelling and any day, two or more persons fall within the first paragraph of subsection (2) above to apply, they shall each be jointly and severally liable to pay the council tax in respect of the dwelling and that day.

(4) Subsection (3) above shall not apply as respects any day on which one or more of the persons there mentioned fall to be disregarded for the purposes of discount by virtue of paragraph 2 (severely mentally impaired) or 4 (students etc.) of Schedule 1 to this Act and one or more of them do not; and liability to pay the council tax in respect of the dwelling and that day shall be determined as follows—
(a) if only one of those persons does not fall to be so disregarded, he shall be solely liable;
(b) if two or more of those persons do not fall to be so disregarded, they shall each be jointly and severally liable."

So paragraph (3) says that each "resident of the dwelling" is "jointly and severally liable to pay the council tax"; however, paragraph (4) (a) says that if only one person is not disregarded (i.e. is not a student in your scenario) then they are solely liable for the council tax.

So Citizens Advice are right, and the Bristol council tax office are wrong. You are not liable at all, as you are a disregarded person. The only person responsible is the non-student.

If the council tax office dispute this, ask them to read subsection 4 of schedule 6 of the Local Government Finance Act 1992 which specifically says that if only one person is not disregarded ("does not fall to be so disregarded") then they are solely liable.

This is so helpful, thank you, thank you, thank you so much! Honestly want to cry you have made a really big difference, I have been worrying about this a lot and hopefully if I cite this they might listen to me. Thank you again, you angel.

Council Tax is a property tax. That means that the amount due is based upon the property (and the characteristics of the people living in that property). Once that tax has been worked out, we then need to work out how is responsible for paying it.

No Council Tax liability exists if every occupant is a full-time student. As soon as that is not the case, then a Council Tax liability occurs - although a discount may apply. In your case, a 25% applies, because the tenant who is no longer a student is deemed to be living alone (as students are "disregarded" when they count how many people are in the property). Therefore the Council Tax liability is 75% of the "full" Council Tax.

Then we come to who is responsible for paying it. There is a hierarchy involved in this (see the "Who has to pay council tax" section of this page). In your scenario, that would be "a residential tenant" (each of whom would be liable if there is more than one). The key question, it seems, is whether all tenants are responsible for that 75% Council Tax - or are "disregarded tenants" not included?

For that we have to turn to the legislation itself (Local Government Finance Act 1992, as amended). They key part is schedule 6, "Persons liable to pay council tax", and in particular subsections (3) and (4). (The reference to subsection (2) basically says that a person who is "resident of the dwelling" is liable".)

"(3) Where, in relation to any chargeable dwelling and any day, two or more persons fall within the first paragraph of subsection (2) above to apply, they shall each be jointly and severally liable to pay the council tax in respect of the dwelling and that day.

(4) Subsection (3) above shall not apply as respects any day on which one or more of the persons there mentioned fall to be disregarded for the purposes of discount by virtue of paragraph 2 (severely mentally impaired) or 4 (students etc.) of Schedule 1 to this Act and one or more of them do not; and liability to pay the council tax in respect of the dwelling and that day shall be determined as follows—
(a) if only one of those persons does not fall to be so disregarded, he shall be solely liable;
(b) if two or more of those persons do not fall to be so disregarded, they shall each be jointly and severally liable."

So paragraph (3) says that each "resident of the dwelling" is "jointly and severally liable to pay the council tax"; however, paragraph (4) (a) says that if only one person is not disregarded (i.e. is not a student in your scenario) then they are solely liable for the council tax.

So Citizens Advice are right, and the Bristol council tax office are wrong. You are not liable at all, as you are a disregarded person. The only person responsible is the non-student.

If the council tax office dispute this, ask them to read subsection 4 of schedule 6 of the Local Government Finance Act 1992 which specifically says that if only one person is not disregarded ("does not fall to be so disregarded") then they are solely liable.

Hi


My daughter is doing distance learning 20 hrs a week at halls of residence . The manager said that was fine. However she has been told this week she has to pay all the full time students council tax and hers as she is part time? Is this true?

Council Tax is a property tax. That means that the amount due is based upon the property (and the characteristics of the people living in that property). Once that tax has been worked out, we then need to work out how is responsible for paying it.

No Council Tax liability exists if every occupant is a full-time student. As soon as that is not the case, then a Council Tax liability occurs - although a discount may apply. In your case, a 25% applies, because the tenant who is no longer a student is deemed to be living alone (as students are "disregarded" when they count how many people are in the property). Therefore the Council Tax liability is 75% of the "full" Council Tax.

Then we come to who is responsible for paying it. There is a hierarchy involved in this (see the "Who has to pay council tax" section of this page). In your scenario, that would be "a residential tenant" (each of whom would be liable if there is more than one). The key question, it seems, is whether all tenants are responsible for that 75% Council Tax - or are "disregarded tenants" not included?

For that we have to turn to the legislation itself (Local Government Finance Act 1992, as amended). They key part is schedule 6, "Persons liable to pay council tax", and in particular subsections (3) and (4). (The reference to subsection (2) basically says that a person who is "resident of the dwelling" is liable".)

"(3) Where, in relation to any chargeable dwelling and any day, two or more persons fall within the first paragraph of subsection (2) above to apply, they shall each be jointly and severally liable to pay the council tax in respect of the dwelling and that day.

(4) Subsection (3) above shall not apply as respects any day on which one or more of the persons there mentioned fall to be disregarded for the purposes of discount by virtue of paragraph 2 (severely mentally impaired) or 4 (students etc.) of Schedule 1 to this Act and one or more of them do not; and liability to pay the council tax in respect of the dwelling and that day shall be determined as follows—
(a) if only one of those persons does not fall to be so disregarded, he shall be solely liable;
(b) if two or more of those persons do not fall to be so disregarded, they shall each be jointly and severally liable."

So paragraph (3) says that each "resident of the dwelling" is "jointly and severally liable to pay the council tax"; however, paragraph (4) (a) says that if only one person is not disregarded (i.e. is not a student in your scenario) then they are solely liable for the council tax.

So Citizens Advice are right, and the Bristol council tax office are wrong. You are not liable at all, as you are a disregarded person. The only person responsible is the non-student.

If the council tax office dispute this, ask them to read subsection 4 of schedule 6 of the Local Government Finance Act 1992 which specifically says that if only one person is not disregarded ("does not fall to be so disregarded") then they are solely liable.

Essentially, yes.

As I wrote above, council tax is a property tax, so it's wrong to refer to "all the full time students council tax". If all the residents of a property are full time students, then no council tax liability would occur. However, as your daughter is a part-time student, she is not disregarded for council tax purposes.

So a council tax liability occurs, reduced by 25% as she's the only non disregarded person, and she is solely liable.

Had she been studying 21 hours per week, she would be classed as full-time and there would be no liability.

So she will have to pay all the 5 flat mates council tax and hers too. Could she do another 60 credit distance learning course to be classified as a full time student? So she will be doing 2 part time courses. She is just waiting to enrol onto it. If she gets on Will they ask just ask her to pay sept and October?

Hi


My daughter is doing distance learning 20 hrs a week at halls of residence . The manager said that was fine. However she has been told this week she has to pay all the full time students council tax and hers as she is part time? Is this true?

While agree with what @DataVenia wrote, there's also another factor that comes in -- "The Council Tax (Exempt Dwellings) Order 1992" (https://www.legislation.gov.uk/uksi/1992/558/made) which specifices that Halls of Residence are "exempt dwellings" as far as council tax is concerned.

People living in halls of residence (as defined by class M in section 3 of the order) don't pay council tax because council tax doesn't apply to that type of dwelling, and not because they are students. Indeed, there are pages online that state that no resident of such a dwelling -- even if they are not a student -- will be liable for council tax.

Class M was amended by https://www.legislation.gov.uk/uksi/1994/539/article/4/made

You'd need to check the specific wording of class M to be sure whether it applies to the building concerned, but it sounds like the manager might be wrong.

So could you please tell me if 2 part time courses add up to more than 21 hrs of study per week does that make you excempt .

While agree with what @DataVenia wrote, there's also another factor that comes in -- "The Council Tax (Exempt Dwellings) Order 1992" (https://www.legislation.gov.uk/uksi/1992/558/made) which specifices that Halls of Residence are "exempt dwellings" as far as council tax is concerned.

People living in halls of residence (as defined by class M in section 3 of the order) don't pay council tax because council tax doesn't apply to that type of dwelling, and not because they are students. Indeed, there are pages online that state that no resident of such a dwelling -- even if they are not a student -- will be liable for council tax.

Class M was amended by https://www.legislation.gov.uk/uksi/1994/539/article/4/made

You'd need to check the specific wording of class M to be sure whether it applies to the building concerned, but it sounds like the manager might be wrong.

Many thanks for that. I really appreciate you helping me these queries . Could you also confirm please, if you are a part time student and you are 6 in total are you just paying for your own council tax which is similar to what you would be paying at home or are you paying your flat mates too or do they get 25 per cent off and have to foot a bill each. Obviously the last one would be our worst nightmare as we are burdening others because of part time status. It really wouldn’t be fair to do this.

Council Tax is a property tax. That means that the amount due is based upon the property (and the characteristics of the people living in that property). Once that tax has been worked out, we then need to work out how is responsible for paying it.

As I wrote above, council tax is a property tax, so it's wrong to refer to "all the full time students council tax".