Understanding Council Tax Exemptions for Students

Understanding Council Tax exemptions for students is an important step for anyone involved in student housing or studying in Scotland, UK. Whether you’re attending university, living in student halls, or renting privately, your student status can significantly affect whether you’re liable to pay council tax. Knowing how these exemptions work can help you avoid overpaying and ensure compliance with local regulations.

Navigating through Council Tax can be confusing, especially when it comes to determining who qualifies for exemptions and how mixed households are treated. The rules around student status, course length, and occupancy can significantly impact whether you owe Council Tax or are eligible for a discount. Without a clear understanding, it’s easy to miss out on savings or face unexpected bills.

In this article, I’ll walk you through the essentials of student exemptions, how to apply for them, and what to do if you share your home with non-students. By the end, you’ll have a clear understanding of how to navigate Council Tax as a student, ensuring you don’t pay more than you need to.

What Is the Council Tax Exemption for Students?

Council Tax is a local property tax charged on residential properties in Scotland to help fund essential public services, including waste collection, street lighting, schools, libraries, social care, and local policing. Every residential property is placed into one of eight valuation bands (A to H) based on its estimated market value as of April 1, 1991. The amount of Council Tax you pay depends on your property’s band and the rates set by your local authority.

Council Tax exemption for students means that a property is exempt from paying Council Tax if all of its occupants are full-time students who meet the eligibility criteria. In Scotland, students enrolled at a recognised college or university on a full-time course are usually eligible for this exemption. This applies to university halls of residence, which are automatically exempt, as well as privately rented or owned properties where every resident is a full-time student. If a non-student lives on the property, the exemption no longer applies, although a discount may still be available. Students typically need to provide a certificate of student status from their institution to qualify.

Here’s a breakdown of how much you might pay depending on your property’s band:

Who Qualifies as a Student for Council Tax Exemption?

To qualify for a Council Tax exemption as a student, you must meet specific eligibility criteria set by your local council. You will typically qualify for exempt if you are:

• Enrolled on a full-time course that requires at least 21 hours of study per week and includes at least 24 weeks of study per academic year/calendar year.
• Under 20 years old and studying a qualifying course, such as A Levels, with a minimum of 12 hours of study per week for more than three months.
• A student nurse, midwife, or foreign language assistant registered with the British Council.
• Under 18 years old – individuals below this age are not counted for Council Tax. If all residents in a property are under 18, the property is fully exempt from Council Tax.

Note: Part-time study, evening classes, distance learning, study tuition, or job-related study do not qualify for exemption.

If you meet these requirements, you can apply for a council tax exemption by requesting a student certificate from your university or college and submitting it to your local council.

Special Cases: Postgraduate Students, Between Courses, and Taking Time Off

If You’re a Postgraduate Student
Postgraduate students enrolled on a full-time course that meets the standard criteria (lasting at least 24 weeks with 21 hours of study per week) qualify for council tax exemption just like undergraduate students. However, if your postgraduate course is part-time or research-based without regular attendance, you may not qualify. So, it is always best to confirm your status and check with your institution and local council.

If You’re Between Courses
If you have completed one course and are waiting to start another, your student exemption may no longer apply during this gap period or may temporarily lapse. During this gap, you are generally liable for council tax unless you qualify under other exemptions or discounts. It’s important to notify your local council about your course status to avoid any unexpected bills or penalties.

If You’re Taking Time Off from Your Course
Students who take a formal break, leave of absence or suspension from their studies are usually not considered full-time students during that period. As a result, you will likely lose your council tax exemption and become liable for council tax until you resume full-time study. Always notify your local council as soon as your study status changes, and keep documentation from your institution as proof if needed.

What are the types of Student Housing and what do You Pay?

Understanding how council tax applies to different types of student accommodation is important to avoid unexpected costs. Whether you’re living in university halls, renting privately, or sharing with non-students, your council tax responsibility depends on who you live with and the type of tenancy. Below is a breakdown of the main housing types and what they mean for your council tax bill.

1. Student Halls
   Student halls are accommodation provided directly by your university or college. These properties are fully exempt from council tax, meaning students living in halls do not have to pay anything towards it. The exemption is automatic, so students don’t need to take any additional steps or apply separately. This makes halls a hassle-free option in terms of council tax responsibilities.
   
   If you are interested in student halls, you can check out the student accommodation options for rent in Dundee.

2. Private Rented Homes with Only Students
   If you and your housemates are all full-time students renting a private property, the household is generally exempt from council tax. However, unlike university-managed halls, the exemption isn’t automatic. You are required to submit student status certificates available from your university or college to your local council. Without this documentation, the council may still issue a bill, so it’s important to complete this step soon after moving in.
   
3. Mixed Households (Students + Non-Students)
   This situation is one of the most commonly misunderstood. If you live in a property where one or more of your housemates are not full-time students, the household will not be fully exempt from council tax. The non-student adult(s) will be liable to pay it. However, if only one adult in the property is not a student, they may be eligible for a 25% single-person discount because full-time students are disregarded for council tax purposes. In such cases, all student residents should still submit their certificates so the council can apply the appropriate discount and assign liability correctly.

How to Apply for Council Tax Exemption

If you’re a full-time student living in Scotland, you will be eligible for a council tax exemption or discount—but it’s not always automatic, especially if you’re not in student halls. To ensure you don’t get charged unnecessarily, it’s important to follow the proper steps and submit the right documentation.

Steps to Apply:

1. Contact Your Local Council
   Visit your local council’s website or call their customer service team to find the correct process for applying for council tax exemption. Every council may have slightly different procedures or forms, so make sure you’re following the guidance specific to your area. For Scotland, you can follow this Link.
   
2. Get a Student Certificate
   Ask your university or college for a Council Tax Exemption Certificate (also known as a student status letter). This official document confirms that you’re enrolled in a full-time course that qualifies you for exemption under the council tax rules.
   
3. Submit Documentation for Each Student
   If you’re living in a shared student house, each eligible student must submit their certificate to the local council. One person’s exemption doesn’t automatically apply to everyone else on the property. Submitting the documents collectively can help speed up the process and ensure a full exemption is granted.
   
4. Wait for Approval
   Once the council reviews and verifies the documents, they’ll update your council tax record. If everyone in the property is a full-time student, the household will usually receive a 100% exemption. If you live in a mixed household (students and non-students), a discount may be applied instead, such as the 25% single-person discount if there’s only one non-student adult.

What Happens if Students Live with Non-Students?

Council Tax liability can become more complex when students live alongside non-students in the same property. It’s important to understand how the presence of non-students affects exemptions and discounts. Here’s a detailed explanation of common situations:

1. All Occupants Are Full-Time Students

If every adult living in the property is a full-time student, the property qualifies for a 100% Council Tax exemption. This means no one in the household is liable to pay Council Tax. To claim this exemption, all students must provide proof of their full-time student status to the local council, usually through a student certificate issued by their educational institution. This applies to both university-managed halls and privately rented student properties.

2. One Full-Time Student and One Non-Student Adult

When there is exactly one non-student adult living with full-time students, the household no longer qualifies for full exemption. However, the non-student adult is usually responsible for paying the Council Tax bill, but they can claim a single-person discount of 25% since full-time students are disregarded for Council Tax purposes. The students still need to submit their student certificates to ensure the council applies the correct discount and assigns liability properly.

3. One or More Full-Time Students Living with Two or More Non-Student Adults

If there are two or more non-student adults living in a property with full-time students, no exemptions or discounts apply. In this case, all the non-student adults are jointly liable for paying the full Council Tax bill. The presence of multiple non-students means the property is treated as a standard household for Council Tax purposes, with no regard for the student occupants.

4. A Student Is the Sole Tenant or Owner Living Alone or with Other Non-Students

If a full-time student is the only tenant or owner of a property and does not live with other full-time students, they are generally liable for Council Tax. However, depending on individual circumstances such as low income, disability, or other qualifying factors, they may be eligible to apply for discounts, reductions, or exemptions. It is advisable for the student to contact the local council to check their eligibility for any such relief.

How much do landlords pay council tax for students?

Landlords are generally not responsible for paying council tax when a property is fully occupied by full-time students, as these properties qualify for a full exemption. However, this exemption is not automatic—students must provide valid student certificates to the local council to confirm their status. If even one resident in the property is not a full-time student, the exemption no longer applies, and the non-student tenant usually becomes liable for the council tax. Additionally, if the property is vacant between tenancies or the students fail to submit the necessary documentation, the landlord may be required to pay the full council tax bill.

In the case of HMO (House in Multiple Occupation) properties, where tenants rent individual rooms under separate agreements, it is often the landlord who holds legal responsibility for paying council tax. Nevertheless, if all tenants in an HMO are full-time students, landlords can apply for a full exemption by submitting the required student certificates to the council. To avoid unnecessary charges, landlords should ensure they verify the student status of tenants early and promptly submit all relevant documents to their local council.

Final Thought

Council Tax exemptions for students depend largely on whether the property is occupied solely by full-time students and the specific circumstances of the household. For students and landlords, understanding these rules is key to ensuring you don’t pay more than necessary. Generally, if everyone in the property is a full-time student, the property is exempt from Council Tax. However, if non-students live there, the bill may be reduced rather than fully exempt.

Remember, applying for student exemptions requires proof of full-time student status, usually via a certificate from the educational institution. It’s important to communicate with your local council and submit the necessary documents promptly to avoid unnecessary charges. Being proactive about Council Tax can help students and landlords manage their finances more effectively and avoid surprises.
If you’re unsure about your eligibility or need assistance with the application process, don’t hesitate to contact Westport Property to seek advice for student support services or accommodations. Getting the right information and support will help you navigate Council Tax smoothly and make the most of available exemptions.