PART 7Calculation of council tax reduction
Maximum council tax reduction
79.—(1) Subject to paragraphs (4) and (5), for the purposes of regulation 13 (conditions of entitlement to council tax reduction) the amount of a person’s maximum council tax reduction in respect of a day for which the person is liable to pay council tax is amount A divided by the amount B where—
(a)A is the amount set by the relevant authority as the council tax for the relevant financial year in respect of the dwelling in which the person is a resident and for which the person is liable, subject to—
(i)any discount which may be appropriate to that dwelling, and
(ii)any reduction in liability for council tax under Regulations made under section 80 of the Act or under a scheme established under section 80A of the Act(1), other than a reduction under these Regulations, and
(b)B is the number of days in that financial year,
less any deductions in respect of non-dependants which fall to be made under regulation 90 (non-dependant deductions).
(2) Subject to paragraphs (4) and (5), for the purposes of regulation 14 (conditions of entitlement to council tax reduction – dwellings in bands E to H) the amount of a person’s maximum council tax reduction in respect of a day for which the person is liable to pay council tax is the amount—
less any deductions in respect of non-dependants which fall to be made under regulation 90.
(3) In paragraph (2)—
(a)A and B have the same meanings as in paragraph (1), and
(b)C is—
(i)1.075 if the relevant dwelling is in valuation band E,
(ii)1.125 if the relevant dwelling is in valuation band F,
(iii)1.175 if the relevant dwelling is in valuation band G,
(iv)1.225 if the relevant dwelling is in valuation band H.
(4) Subject to paragraph (5), where an applicant is jointly and severally liable for council tax in respect of a dwelling in which the person is resident with one or more other persons, but excepting any person residing with the applicant who is a student to whom regulation 20(2) (persons not entitled to council tax reduction: students) applies, in determining the maximum council tax reduction in the person’s case in accordance with paragraph (1) or (2) amount A is to be divided by the number of persons who are jointly and severally liable for that tax.
(5) Where an applicant is jointly and severally liable for council tax in respect of a dwelling with only the applicant’s partner, paragraph (4) does not apply.
Extended council tax reduction
80.—(1) Subject to regulation 83 (extended council tax reduction: movers), a person who is entitled to council tax reduction by virtue of the general conditions of entitlement is entitled to extended council tax reduction where—
(a)the person or any partner of the person was entitled to a qualifying income-related benefit,
(b)entitlement to a qualifying income-related benefit ceased because the person or the person’s partner—
(i)commenced employment as an employed or self-employed earner,
(ii)increased their earnings from employment as an employed or self-employed earner, or
(iii)increased the number of hours worked in employment as an employed or self-employed earner,
and that employment is, or the increased earnings or increased number of hours are, expected to last 5 weeks or more, and
(c)the person or the person’s partner had been entitled to and in receipt of a qualifying income-related benefit, jobseeker’s allowance or a combination of those benefits for a continuous period of at least 26 weeks before the day on which the entitlement to a qualifying income-related benefit ceased.
(2) For the purposes of this regulation, where a person or any partner of the person is entitled to and in receipt of joint-claim jobseeker’s allowance the person or the person’s partner, as the case may be, is to be treated as being entitled to and in receipt of jobseeker’s allowance.
(3) For the purposes of this regulation, a person is entitled to council tax reduction by virtue of the general conditions of entitlement where—
(a)the person ceased to be entitled to council tax reduction on vacating the dwelling in which the person was resident,
(b)the day on which the person vacated the dwelling was either in the week in which entitlement to a qualifying income-related benefit ceased, or in the preceding week, and
(c)entitlement to the qualifying income-related benefit ceased in any of the circumstances listed in paragraph (1)(b).
(4) This regulation does not apply where, on the day before a person’s entitlement to income support ceased, regulation 6(5) of the Income Support Regulations (remunerative work: housing costs)(2) applied to that person.
Duration of period of entitlement to extended council tax reduction
81.—(1) Subject to regulation 83 (extended council tax reduction: movers), where a person is entitled to extended council tax reduction, the period of entitlement starts on the first day of the reduction week immediately following the reduction week in which the person, or any partner of the person, ceased to be entitled to a qualifying income-related benefit.
(2) For the purpose of paragraph (1), a person or a person’s partner ceases to be entitled to a qualifying income-related benefit on the day immediately following the last day of entitlement to that benefit.
(3) The period of entitlement to extended council tax reduction ends on the earliest of—
(a)the end of a period of 4 weeks of that entitlement, or
(b)the first day on which the person who is entitled to extended council tax reduction has no liability for council tax.
Amount of extended council tax reduction
82.—(1) For any week during the period of entitlement to extended council tax reduction the amount of council tax reduction to which the person is entitled is the higher of—
(a)the amount of council tax reduction to which the person was entitled in the last reduction week before the person or the person’s partner ceased to be entitled to a qualifying income-related benefit,
(b)the amount of council tax reduction to which the person would be entitled for any reduction week during the period of entitlement to extended council tax reduction if regulation 80 (extended council tax reduction) did not apply to the person, or
(c)the amount of council tax reduction to which the person’s partner would be entitled if regulation 80 did not apply to the person.
(2) Paragraph (1) does not apply in the case of a mover.
(3) Where a person is entitled to extended council tax reduction under this regulation and the person’s partner applies for council tax reduction, that partner is not entitled to council tax reduction during the other partner’s period of entitlement to extended council tax reduction.
Extended council tax reduction: movers
83.—(1) Where a mover who is entitled to extended council tax reduction in respect of liability to pay council tax to the first authority moves to reside in a dwelling in the area of the second authority that mover is entitled to extended council tax reduction in respect of any liability to pay council tax to the second authority of an amount calculated in accordance with paragraph (2).
(2) The amount of extended council tax reduction to which the mover is entitled is the amount of council tax reduction to which the mover was entitled for the last reduction week before the mover ceased to be entitled to a qualifying income-related benefit.
(3) The period of entitlement to extended council tax reduction in respect of liability to pay council tax to the first authority ends on the earliest of—
(a)the first Sunday after the move, or
(b)the day on which the mover’s liability to pay council tax to the first authority ends.
(4) The period of entitlement to extended council tax reduction granted by virtue of paragraph (1)—
(a)starts on the Monday following the day of the move, and
(b)ends on the expiry of the period of entitlement to extended council tax reduction which would have applied had the mover not moved from the area of the first authority.
Relationship between council tax reduction and extended council tax reduction
84.—(1) Where a person’s entitlement to council tax reduction would have ended when the applicant ceased to be entitled to a qualifying income-related benefit in the circumstances listed in regulation 80(1)(b) (extended council tax reduction), that eligibility will not cease until the end of the period of eligibility for extended council tax reduction.
(2) Part 9 (effective date) does not apply to any extended council tax reduction granted in accordance with regulation 82(1)(a) (amount of extended council tax reduction) or 83(2) (extended council tax reduction: movers).
Extended council tax reduction (qualifying contributory benefits)
85.—(1) A person who is entitled to council tax reduction by virtue of the general conditions of entitlement is entitled to extended council tax reduction (qualifying contributory benefits) where—
(a)the person or any partner of the person was entitled to a qualifying contributory benefit,
(b)entitlement to a qualifying contributory benefit ceased because the person or the person’s partner—
(i)commenced employment as an employed or self-employed earner,
(ii)had an increase in earnings from such employment, or
(iii)increased the number of hours worked in such employment,
and that employment is or, as the case may be, increased earnings or increased number of hours are expected to last 5 weeks or more,
(c)the person or the person’s partner had been entitled to and in receipt of a qualifying contributory benefit or a combination of qualifying contributory benefits for a continuous period of at least 26 weeks before the day on which the entitlement to a qualifying contributory benefit ceased, and
(d)the person or the person’s partner was not entitled to and not in receipt of a qualifying income-related benefit in the last reduction week in which the person or the person’s partner was entitled to a qualifying contributory benefit.
(2) For the purposes of this regulation, a person is entitled to council tax reduction by virtue of the general conditions of entitlement where—
(a)the person ceased to be entitled to council tax reduction because the person vacated the dwelling in which the person was resident,
(b)the day on which the person vacated the dwelling was either in the week in which entitlement to a qualifying contributory benefit ceased, or in the preceding week, and
(c)entitlement to the qualifying contributory benefit ceased in any of the circumstances listed in paragraph (1)(b).
Duration of extended council tax reduction (qualifying contributory benefits)
86.—(1) Subject to regulation 88 (extended council tax reduction (qualifying contributory benefits: movers)), where a person is entitled to extended council tax reduction (qualifying contributory benefits), the period of entitlement starts on the first day of the reduction week immediately following the reduction week in which the person or the person’s partner ceased to be entitled to a qualifying contributory benefit.
(2) For the purpose of paragraph (1), a person or a person’s partner ceases to be entitled to a qualifying contributory benefit on the day immediately following the last day of entitlement to that benefit.
(3) The period of entitlement to council tax reduction (qualifying contributory benefits) ends on the earliest of—
(a)the end of a period of 4 weeks of entitlement, or
(b)the day on which the entitled person’s liability for council tax ends.
Amount of extended council tax reduction (qualifying contributory benefits)
87.—(1) For any week during the period of entitlement to council tax reduction (qualifying contributory benefits) the amount of council tax reduction (qualifying contributory benefits) is the higher of—
(a)the amount of council tax reduction to which the person was entitled in the last reduction week before the person or the person’s partner ceased to be entitled to a qualifying contributory benefit,
(b)the amount of council tax reduction to which the person would be entitled for any reduction week during the extended payment period, if regulation 85 (extended council tax reduction (qualifying contributory benefits)) did not apply to the person, or
(c)the amount of council tax reduction to which the person’s partner would be entitled if regulation 86 (duration of extended council tax reduction (qualifying contributory benefits)) did not apply to the person.
(2) Paragraph (1) does not apply in the case of a mover.
(3) Where a person is entitled to extended council tax reduction (qualifying contributory benefits) under this regulation and the person’s partner applies for council tax reduction, that partner is not entitled to council tax reduction during the person’s period of entitlement to extended council tax reduction (qualifying contributory benefits).
Extended council tax reduction (qualifying contributory benefits: movers)
88.—(1) Where a mover who is entitled to extended council tax reduction (qualifying contributory benefits) in respect of liability to pay council tax to the first authority moves to reside in a dwelling in the area of the second authority that mover is entitled to extended council tax reduction in respect of any liability to pay council tax to the second authority of an amount calculated in accordance with paragraph (2).
(2) The amount of extended council tax reduction (qualifying contributory benefit) to which the mover is entitled is the amount of council tax reduction to which the mover was entitled for the last reduction week before the mover ceased to be entitled to a qualifying contributory benefit.
(3) The period of entitlement to extended council tax reduction (qualifying contributory benefit) in respect of liability to pay council tax to the first authority ends on the earliest of—
(a)the first Sunday after the move, or
(b)the day on which the mover’s liability to pay council tax to the first authority ends.
(4) The period of entitlement to extended council tax reduction (qualifying contributory benefits) granted by virtue of paragraph (1)—
(a)starts on the Monday following the day of the move, and
(b)ends on the expiry of the period of extended council tax reduction (qualifying contributory benefits) which would have applied had the mover not moved from the area of the first authority.
Relationship between council tax reduction and extended council tax reduction (qualifying contributory benefits)
89.—(1) Where a person’s entitlement to council tax reduction would have ended when the person ceased to be entitled to a qualifying contributory benefit in the circumstances listed in regulation 80(1)(b), that entitlement does not cease until the end of the period of entitlement to extended council tax reduction.
(2) Part 9 (effective date) does not apply to any extended council tax reduction (qualifying contributory benefits) granted in accordance with regulation 82(1)(a) (amount of extended council tax reduction) or 83(2) (amount of extended council tax reduction: movers).
Section 80 was amended by paragraph 176 of schedule 13 of the Local Government etc. (Scotland) Act 1994 (c.39) and S.I. 2013/388. Section 80A was inserted by section 65 of the Climate Change (Scotland) Act 2009 (asp 12).
Regulation 6(5) was added by S.I. 2001/488 and amended by S.I. 2007/3183, S.I. 2008/1554 and S.I. 2017/725.