Understanding the Severely Mentally Impaired (SMI) Council Tax Discount
Understanding council tax can be very confusing, especially when dealing with circumstances like severe mental impairment (SMI). The UK government provides a council tax discount or exemption for people who qualify under the SMI criteria.
The SMI council tax discount is a financial relief offered to individuals who are diagnosed with a severe mental impairment. This condition must significantly affect their intellectual or social functioning, making day-to-day living challenging. If you qualify, the individual may be disregarded for council tax purposes, possibly reducing the household’s council tax bill or even exempting it entirely.
To qualify for the SMI council tax discount, two main things must be met:
Medical: the individual must have a medically certified condition that is considered a severe mental impairment. This includes, but is not limited to:
- Dementia
- Alzheimer’s disease
- Parkinson’s disease
- Severe learning disabilities
- Strokes or brain injuries causing cognitive impairment
A doctor must confirm the diagnosis in writing.
The individual must also be entitled to at least one of the following benefits:
- Attendance allowance
- Disability Living Allowance (DLA) (higher or middle rate care component)
- Personal Independence Payment (PIP) (daily living component)
- Employment and Support Allowance (ESA)
- Universal Credit (with limited capability for work element)
- Incapacity Benefit
- Severe Disablement Allowance
- Constant Attendance Allowance
- Armed Forces Independence Payment
Note that the individual does not need to be actively receiving the benefit, but they must be entitled to it.
The discount depends on the number of adults in the household:
- If the individual with SMI lives alone, the property is completely exempt from council tax.
- If they live with one other adult, the household is eligible for a 25% discount.
- If all adults in the household qualify as SMI or full-time students, the property is fully exempt.
Applying for the SMI council tax discount involves a few straightforward steps:
- Contact your local council: reach out to your local council’s tax department to request an SMI discount application form. Most councils also provide this form online.
- Provide medical evidence: ask your doctor to complete the medical certification section of the form or provide a letter confirming the diagnosis.
- Submit proof of benefits you receive: include evidence of eligibility for one of the qualifying benefits, such as an award letter.
- Send in your application: return the completed form and supporting documents to your local council. Processing times may vary, but councils typically respond within a few weeks.
Extra things to know
Back dating: if you have been eligible for the discount in previous years but have not applied, you can request the council to backdate the discount. This could result in a refund for overpaid council tax.
Appealing the decision: if your application is refused, you have the right to appeal. Contact your council for details on the appeals process.
Charities like Age UK, Citizens Advice, and Mencap can provide guidance and assistance with the application process.
Your local council can also provide support and help with the application.
The SMI council tax discount is a helpful support for individuals and families managing life with severe mental impairment. While the application process may seem worrying, the financial help it provides can make a big difference. If you believe you or someone you care for may be entitled you need to apply.
You can find lots of information on gov.uk, Money Saving Expert and Age UK.
Hayley Wintrup is a caseworker in the later life team at Barker Gotelee Solicitors in Suffolk.
For more information on our range of legal services, including information surrounding council tax discounts please call the team on 01473 611211 or fill out our enquiry form.
