Full-time students liable for council tax
Most full-time students are not liable to pay council tax. This is because either the dwelling is exempt because everyone who lives in it is a full-time student or, if a student lives with non-students, s/he is usually deemed exempt from liability for the council tax due on the property.
If the dwelling is not exempt from council tax, at least one person is liable for the bill. This depends on her/his position in a liability hierarchy. The person who comes the highest in the hierarchy is the one who is liable to pay. If there are two or more people at the same level in the hierarchy, they are usually jointly liable (see here). Council tax liability hierarchy
– Resident with a freehold interest in the property
– Resident with a leasehold on the property, or the superior leaseholder if there is more than one
– Resident tenant
– Resident statutory or secure tenant
– Resident who is a licensee
– Other resident, including a squatter
If students share accommodation with non-students who are at the same level in the hierarchy, the non-students are liable, but the students are not.1s74 LGA 2003 There is one situation in which a student may be liable for council tax. If a non-student adult lives in a property, the property is not exempt from council tax. If you are a full-time student living with non-students, but you are higher on the hierarchy of liability than the non-students (eg, you are the owner of the property or the only person named on the tenancy agreement), you, not the non-students, are liable for the council tax. In this case, you may be entitled to a discount on the bill or to council tax reduction, depending on your circumstances.
Example: joint tenants
Three students, Pooja, Joey and Zarah, share a flat as joint tenants. While they are all students, the flat is exempt and there is no council tax to pay. Joey drops out of his course. The flat is no longer exempt and Joey is solely liable for the whole council tax bill (although there is a discount). Pooja and Zarah are not liable for any council tax. Joey should apply for a council tax reduction if his income is low.
Examples: students who are liable
Antonia is studying full time and owns the flat in which she lives. She rents a room to a friend, Bill, who is not a student. Antonia is liable for the council tax. As there is only one non-student at the property, there is a 25 per cent discount on the bill. Bill is not liable for any council tax.
Raj is studying full time and rents the flat in which he lives. He sublets a room to a friend who is also a student. Raj is higher on the hierarchy of liability, but, as both of them are students, the flat is exempt from council tax and the bill is nil.