A Scottish minister has urged the nation to check their eligibility for a scheme that helps people get a discount on their council tax bill.
The Council Tax Reduction (CTR) scheme is unique to Scotland and helps people on low incomes save an average of £750 a year on their council tax bill. Those eligible can also save up to 35 per cent on their water and waste charges.
The latest figures published by the Scottish Government show 455,220 recipients received CTR in November 2022, meaning around one-in-five households were benefitting from the scheme.
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But who is eligible and how does the application process work?
What is the Council Tax Reduction scheme?
The Council Tax Reduction scheme assesses a household’s income, capital and circumstances so is open to all, including people not in receipt of benefits.
Details of other help available including extra financial support or help with things like food, heating and electricity can be found on the Scottish Government’s cost of living crisis support website.
Who is eligible for the scheme?
People with low incomes may be eligible for help through Council Tax Reduction, administered by your local council. The following eligible circumstances are listed below.
Shared accommodation
If you share a public space such as bathrooms, kitchen or toilet with other residents in a rented accommodation and you're receiving housing support, you may be exempt from paying council tax.
Students
If you're a student and live alone or share the rent with other students, you may be exempt from paying council tax.
If you're a student, but are sharing with someone who is not a student, you may be eligible for council tax reduction. Students living in halls of residence are exempt from paying council tax.
Mental impairment
If you or someone you live with are severely mentally impaired, you may be exempt from paying council tax. To claim council tax exemption, contact your local council to get a form for your doctor to sign.
Short term empty and unfurnished homes
If your property's unoccupied, your local council may give a discount for a limited amount of time if you can prove:
- you're in the process of renovating
- it's for sale or rent
A previous owner or occupier's use of the property may affect how much discount you get and for how long.
Long term empty and unfurnished homes
If your property has been unoccupied for more than 12 months, your council has the option to charge double the normal rate of council tax. This is called a surcharge.
Councils have discretion to either:
- grant no discount for empty homes
- increase the council tax by 100 per cent for certain properties which have been empty for 1 year or more
You should always check with your local council.
Second homes and holiday homes
You may be able to get a discount on your council tax bill if you own a second home or a purpose built holiday home. This discount does not reduce your water and sewerage charges.
Councils have discretion either to grant no discount for second homes, or to grant a discount between 10 per cent and 50 per cent. You should always check with your local council.
You can find out more about exemptions from paying council tax and waste charges on the Scottish Government website.
Public Finance Minister Tom Arthur said: "We know that this cost of living crisis is hammering people on lower incomes and those already living in poverty. It is vital that people know where to go to get advice and support.
“The Council Tax Reduction scheme will celebrate its tenth anniversary in April and Scottish households have saved more than £3 billion on their council tax since it was introduced. The support it provides has never been more important and I urge people to check whether they are eligible.
“Information can be obtained from your local Citizens Advice Bureau – like the excellent facility I visited in Glenrothes today – local councils and the Money Talk Team service promoted by the Scottish Government, as well as online.”
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