Council Tax Exemptions: Who Qualifies and How to Claim in 2026
Council tax exemptions are one of the most valuable and least understood forms of council tax relief available in England and Wales. Unlike council tax reduction, which reduces your bill based on income, a council tax exemption removes the liability entirely, meaning no council tax is owed at all for the period the exemption applies. In 2026, hundreds of thousands of properties and individuals qualify for exemptions that are simply never claimed. This guide explains every category of council tax exemption, who qualifies, and how to apply.
What Is a Council Tax Exemption?
A council tax exemption is a legal provision that removes the obligation to pay council tax for a property or for a period of time. Exemptions are different from discounts. A discount reduces your bill by a percentage, such as the 25% single person discount. An exemption takes the bill to zero.
Exemptions fall into two broad categories: exempt properties and exempt persons. An exempt property owes no council tax regardless of who lives there or owns it. An exempt person is disregarded when calculating who is liable, which can affect whether others in the household receive a discount or whether the property becomes fully exempt.
Exemptions do not need to be applied for through a means test. You do not need to prove income or savings. You simply need to demonstrate that you or your property meets the qualifying criteria. The local council administers exemptions, and once granted, they are applied to your council tax account automatically for as long as the qualifying conditions continue.
Exempt Properties: Full List for 2026
The following property categories are fully exempt from council tax under the Local Government Finance Act 1992 and subsequent regulations. Each exemption is identified by a class label used by councils and the Valuation Office Agency.
Class B: Properties Owned by a Charity
A property is exempt if it is owned by a charity and has been unoccupied for less than six months. The exemption applies when the property was last used for charitable purposes. After six months, the property becomes liable for council tax, though councils may apply a discount for long-term empty properties.
Class D: Unoccupied Property of a Detained Person
If a property is unoccupied because the person who would otherwise be liable is in detention, for example in prison or a psychiatric institution, the property is fully exempt. The exemption continues for the duration of the detention.
Class E: Unoccupied Property of a Care Home Resident
A property is exempt if it is unoccupied because the person who would be liable has moved permanently into a care home, nursing home, or other residential care establishment. The exemption applies regardless of whether the person owns or rented the property and continues indefinitely as long as the person remains in care.
Class F: Unoccupied Property After Death
A property is exempt if it is unoccupied and the person who would have been liable has died. The exemption applies until probate is granted and then for a further six months after the grant of probate. This gives the estate time to deal with the property without incurring council tax liability during the administration period.
Class G: Unoccupied Property Where Occupation Is Prohibited by Law
If a property is unoccupied because occupation is prohibited by law, for example under a planning enforcement notice or a closure order, it is fully exempt. The exemption applies only while the prohibition is in force.
Class H: Unoccupied Property Held for a Minister of Religion
A property held for occupation by a minister of religion as a residence from which to carry out their duties is exempt while unoccupied. This exemption applies between appointments or while the minister is temporarily residing elsewhere.
Class I: Unoccupied Property of a Person Receiving Care
If a property is unoccupied because the person who would be liable has left to receive care elsewhere, for example moving in with a family member who provides care, the property may be exempt. The care must be required because of old age, disablement, illness, or past or present mental disorder.
Class J: Unoccupied Property of a Person Providing Care
The reverse situation also attracts an exemption. If a property is unoccupied because the person who would be liable has left to provide care to another person elsewhere, the property is exempt. The person receiving care must require care for the same reasons listed under Class I.
Class K: Unoccupied Property of a Student
A property is exempt if it is unoccupied and the person who would be liable is a full-time student. The property must have been the student’s sole or main residence before they started their course. This exemption prevents students from paying council tax on a home they have vacated to live in student accommodation.
Class L: Unoccupied Property Subject to Mortgage Repossession
If a property is unoccupied and a mortgagee has taken possession, for example following a repossession order, the property is exempt from council tax. The exemption applies while the mortgagee holds possession.
Class M: Student Halls of Residence
Purpose-built student halls of residence that are administered or run by educational establishments are fully exempt from council tax, regardless of whether they are occupied.
Class N: Properties Occupied Only by Students
If a property is occupied entirely by full-time students, it is fully exempt from council tax. All occupants must be qualifying full-time students. If a single non-student adult lives in the property, the exemption does not apply, though the student occupants are disregarded and the non-student may qualify for a single person discount.
Class Q: Unoccupied Property Left by a Bankrupt
If a property is unoccupied and was the sole or main residence of a bankrupt person, and is now held by a trustee in bankruptcy, it is exempt from council tax for the duration of the bankruptcy proceedings.
Class S: Properties Occupied Only by Under-18s
If all the occupants of a property are under 18, the property is exempt from council tax. This exemption applies in the rare circumstances where minors occupy a property without any adult resident.
Class T: Unoccupied Annexes
An unoccupied annexe that forms part of a single property with another dwelling is exempt if it cannot be let separately without breaching planning permission. This prevents council tax from being charged on empty annexes that are structurally attached to a main residence.
Class U: Properties Occupied Only by Persons with Severe Mental Impairment
A property is exempt if it is occupied only by one or more persons who have a severe mental impairment. To qualify, the person must have a severe impairment of intelligence and social functioning resulting from a condition such as Alzheimer’s disease, stroke, or another disease or injury affecting the brain, and must be entitled to at least one qualifying benefit including Incapacity Benefit, Severe Disablement Allowance, Disability Living Allowance at the higher or middle rate, or Personal Independence Payment.
Class W: Annexes Occupied by a Dependent Relative
An annexe that forms part of a larger property and is occupied by a dependent relative of the person living in the main property is exempt. A dependent relative is defined as a person aged 65 or over, a person who is substantially and permanently disabled, or a person who has a severe mental impairment.
Disregarded Persons: When People Are Not Counted
Separately from exempt properties, certain individuals are disregarded when calculating how many adults live in a property. If all adults in a property are disregarded, the property becomes fully exempt. If all adults except one are disregarded, the remaining adult is treated as a single person and qualifies for the 25% single person discount.
Categories of disregarded persons include full-time students, student nurses, foreign language assistants, and certain apprentices. Persons under 20 who have recently left school or college and are still in qualifying youth training are also disregarded, as are persons with severe mental impairment, persons in detention, members of visiting forces and certain international organisations, and care workers employed by charities on low wages.
Residents of care homes, hostels, night shelters, or refuges are also disregarded, as are patients who are resident in hospital as their main place of residence.
If you live with someone who falls into one of these categories, you should notify your council so that the person is correctly disregarded. This is not automatic in all cases. Failure to report it means you may be paying more than you should, potentially including a full second adult charge that does not legally apply.
How to Apply for a Council Tax Exemption
To claim an exemption, contact your local council. Most councils have an online form or a dedicated council tax section where you can notify them of a qualifying change in circumstances. You will need to provide evidence that the exemption applies, such as a student enrolment certificate, a care home placement letter, a death certificate, or evidence of property ownership and use.
Exemptions can be backdated to the date the qualifying condition began, not just the date you applied. If you have been paying council tax for a period during which an exemption should have applied, you may be entitled to a refund. Contact your council and request a backdated exemption, providing evidence of when the qualifying condition started. Councils are generally required to process backdated claims, though they may ask for additional documentation.
Council Tax Exemptions and Long-Term Empty Properties
From April 2013, long-term empty properties no longer automatically receive a council tax exemption simply for being unoccupied. Councils now have discretion to charge a premium of up to 100% extra council tax on properties that have been empty for two or more years, effectively doubling the bill. Some councils charge even higher premiums for properties empty for five or more years.
If your empty property qualifies for one of the specific exemptions listed above, such as Class F following a bereavement or Class E because of a care home placement, the exemption takes priority and no council tax is owed for that period. The long-term empty premium only applies to properties that do not qualify for any specific exemption class.
It is worth reviewing the exemption position of any empty property carefully before assuming a premium applies. A council tax exemption claim, if successfully backdated, can result in a significant refund even for properties that have been empty for some time.
Common Situations Where Exemptions Are Missed
In practice, certain scenarios generate unclaimed exemptions more frequently than others. Bereavement is one of the most common. When someone dies, the executor or family members dealing with the estate often continue making council tax payments on the empty property out of habit or uncertainty. In most cases, a Class F exemption applies and no council tax is owed from the date of death until probate is granted and then for six months after.
Care home placements are another frequent source of missed exemptions. When a person moves permanently into residential care, their former home becomes exempt under Class E. Many families continue paying council tax on the empty property for months or years before discovering they were not required to do so.
Student households also commonly underclaim. If all adults in a property are qualifying full-time students, the property is fully exempt. Students frequently pay council tax unnecessarily because they are unaware of the Class N exemption or do not know how to apply it.
Get a Free Review of Your Council Tax Position
Council Tax Advisors reviews council tax accounts across England and Wales, identifying exemptions, discounts, and reductions that households are not claiming. Many people are paying council tax they do not legally owe because they are unaware of the exemptions available or have not notified their council of a qualifying change in circumstances.
If you think an exemption may apply to your property or to someone in your household, contact us for a free review. We will assess your position, identify every entitlement you have, and help you make any claim you are owed, including backdated refunds where applicable.
Disclaimer: The information in this article is for general guidance only and does not constitute legal or financial advice. Council tax exemption rules are set by legislation and may be applied differently by individual councils. Always verify current rules with your local council or a qualified adviser.