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 2021/22 for the full charge of £2034.57 (weekly amount of £39.02).

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 forty percent of his liability.

Step 1. Mr A's liability for the year 2021/2022 is £2034.57

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 40% reduction as show in Table 3 on the previous page. 40% of £2034.57 = £813.83

Step 3. The reduction is converted to a weekly amount. £813.83/365 x 7 = £15.60

Step 4. The weekly reduction is then reduced by the non-dependant charge for the daughter. £15.60 - £6.53 = £9.07

Step 5. The weekly council tax reduction is converted to a yearly reduction. £9.07/7 x 365 = £472.93

Step 6. Mr A's council tax liability for the year after his reduction is calculated. £2034.57 - £472.93 = £1561.64