Example of a council tax reduction calculation from 1 April 2025
Mr A and his partner, live in a band E property and they receive their annual demand for 2025 to 2026 for the full charge of £2494.57 (weekly amount of £47.84).
As well as his partner Mr A lives with his adult daughter. Mr A and his partner have savings of less than £6,000 and their weekly unearned income to be taken into account under the scheme is £190 a week. Mr A’s daughter does not work.
Mr A applies for a council tax reduction and is entitled to a reduction of 50% of his liability.
- Step 1. Mr A's liability for the year 2025 to 2026: £2494.57
- Step 2. Mr A and his partner have unearned income of £190 per week to be taken into account under the council tax reduction scheme (non-protected category). This entitles them to a 50% reduction as shown in the table. 50% of £2494.57 = £1247.29
- Step 3. The reduction is converted to a weekly amount: £1247.29/365 x 7 = £23.92
- Step 4. The weekly reduction is then reduced by the non-dependant charge for the daughter: £23.92 - £8.04 = £15.88
- Step 5. The weekly council tax reduction is converted to a yearly reduction: £15.88/7 x 365 = £828.03
- Step 6. Mr A's council tax liability for the year after his reduction is calculated: £2494.57- £828.03 = £1666.54