Council tax reduction scheme

Example of a council tax reduction calculation

Mr A and his partner, live in a band E property and they receive their annual demand for 2022/23 for the full charge of £2121.14 (weekly amount of £40.68).

As well as his partner Mr A lives with his adult daughter. Mr A and his partner have savings of less than £6,000.00 and their weekly unearned income to be taken into account under the scheme is £165.00 a week. Mr A’s daughter does not work.

Mr A applies for a council tax reduction and is entitled to a reduction of fifty percent of his liability.

Step 1. Mr A's liability for the year 2022/2023: £2121.14

Step 2. Mr A and his partner have unearned income of £165 per week to be taken into account under the council tax reduction. This entitles them to a 50% reduction as shown in the table on this page. 50% of £2121.14 = £1060.57

Step 3. The reduction is converted to a weekly amount: £1060.57/365 x 7 = £20.34

Step 4. The weekly reduction is then reduced by the non-dependant charge for the daughter: £20.34 - £6.73 = £13.61

Step 5. The weekly council tax reduction is converted to a yearly reduction: £13.61/7 x 365 = £709.66

Step 6. Mr A's council tax liability for the year after his reduction is calculated: £2121.14 - £709.66 = £1411.48