Council Tax support, SMI or both

Hi, my client is severely disabled and lives with his parents. The property is owned by the client and he is in receipt of UC. His mother cares for him. I’m trying to work out the best way for him to claim support and I’m going round in circles.

His parents currently pay the CT bill. They will be applying for a carer’s discount.

If he is classed as SMI, and therefore cannot be liable, am I right in assuming he cannot claim CT support? If they receive a Carer’s discount, there would still be 2 people living in the property (mum and dad), even if he gets SMI so there would be no single occupant discount.

My thoughts are he should apply for the carer’s discount and CT support (80%) and forget the SMI. Any other suggestions?

Council Tax is complicated and it can make your head spin.

In your case, i think the following applies. Your client is liable for Council Tax as he owns the property. The mother and father won’t be liable unless they have some legal interest in the property.

He should seek the SMI discount and the mother should seek the carer’s discount, and if these are granted, then two people are discounted so only one person counts as resident, which means the 25% discount can then be applied to the Council Tax liability. If the father can show he is also caring for his son to the required standard, he could also claim the carer’s discount in which case there are no residents counted and a 50% discount should be applied to the liability, leaving the other half payable by the son (as the liable person).

Your client can then claim CTS on whatever outstanding liability there is and his parents will be treated as non-dependents and you would need to check details of the working-age CTS scheme to see what that means in terms of any rebate granted.

There is a hierarchy of council tax liability, where the first person (or two or more if joint and severally liable) is/are liable for the council tax:

a) a resident with a freehold interest in the property

b) a resident with a leasehold interest in the property, or the superior leasehold interest if there is more than one

c) a resident who is a statutory or secure tenant

d) a resident who is a licensee

e) any other resident, such as a squatter

f) where there is no resident, the non-resident owner

In our area (from the council’s website), the explanation of SMI discount is as follows:

“A Council Tax bill is based on two adults living in a property. If one of the adults is severely mentally impaired, a 25% discount on Council Tax payments may be awarded. When a person with a severe mental impairment lives in a property on their own, they get an 100% exemption from Council Tax, which means they would have nothing to pay.

The definition of severe mental impairment is:

‘Severe impairment of intelligence and social functioning (however caused) which appears to be permanent.’

Examples of severe mental impairment include dementia, severe memory loss, a learning disability, a chronic mental illness, Parkinson’s, or having suffered a stroke.

To get this discount, you need to get a letter from your doctor to confirm that the condition is permanent. You must also be entitled to one of the following qualifying benefits:

ESA/Incapacity Benefit - at higher long term rate only

Attendance Allowance at higher or lower rate

Care Component of Disability Living Allowance or Personal Independence Payment at the higher or middle rate

Severe Disablement Allowance
Constant Attendance Allowance at one of the four rates payable under disablement benefit or war disablement person

Unemployment Supplement Payment as an increase to Disablement Benefit

Unemployability Allowance payable with War Disablement Pension

Disability Working Pension

Income Support with the additional condition of paragraph 2 to Income Support General Regulations 1987”

I hope that this helps.

Thank you for the replies.

Another quick query please? Child moves into her own property with live-in carer’s. Parents live in another property but still provide care.

As under 18 she cannot be liable for Council Tax, therefore presumably the bill would be in the name of the deputy. If the child is SMI, would she still have a liability due to the live in carers? If so, who could claim CTS? Would the deputy be able to claim on behalf of the child?