Are there benefit restrictions on UK visas? Are international students exempt from Council Tax?

“If I hold a UK student visa and have received a council tax bill, can I apply for an exemption?”
“You can, provided you meet the requirements for full-time study and residence. The fact that your visa states ‘shall not be funded by public funds’ does not prevent eligible students from applying for an exemption; however, who you live with may affect the outcome.”

The following is a breakdown based on the current rules in England. Residents of Wales and Scotland should check their local regulations separately; Northern Ireland operates a residential property tax system.

The Council Tax exemption depends on the number of occupants in the entire property

Refer to Class N under Article 3 of the current ‘Council Tax (Exempt Dwellings) Order 1992’. The key requirement for permanent dwellings is that all occupants must be eligible persons as specified in the provisions.

The term ‘student’ in the provisions must be verified in accordance with the definition set out in the Municipal Tax Regulations. Taking a typical full-time university course as an example, the course must last for at least one academic year or calendar year, with a study programme comprising at least 24 weeks per year and an average of at least 21 hours per week; study, teaching and work placements required by the course may be counted together. These figures correspond to the course schedule required by the institution; the number of hours spent studying each week on one’s own is not sufficient to confirm eligibility. The City Council’s guidelines for student exemption applications require proof of student status; when preparing the necessary documents, you may ask the institution to provide a list detailing the course titles, full-time status and start and end dates, and to verify that the personal details and application address on the certificate match those provided, to assist the local authority in confirming the applicable period.

Student exemptions usually cease upon completion of the course.

‘All occupants’ determine whether the entire property is exempt from tax. In the case of a standard shared flat, if it is occupied solely by eligible full-time students, an application may be made for a full exemption; if there is also one adult who counts towards the taxable headcount, a 25 per cent reduction is usually granted; if there are two or more adults who must be counted towards the headcount, this discount cannot be obtained solely on the basis of student flatmates. Those who continue to live at the same address after their course has ended must have their headcount reassessed; graduation or the expiry date of a student visa does not automatically extend student status.

The conditions regarding family members are contained within the word ‘or’

In this context, the proof of relationship must be considered in conjunction with the conditions of residence.

Class N also includes certain family members: a student’s spouse, civil partner or dependant who is not a British citizen and whose conditions of stay prohibit them from undertaking paid work ‘or’ claiming benefits may also be eligible. The student section of the UK Government’s ‘Council Tax A Guide in Brief’ retains this ‘or’. Consequently, a student who still meets the full-time criteria and lives with a non-UK spouse who is authorised to work but is subject to an NRPF (Not to Receive Public Funds) condition may be exempt from council tax for the entire household, provided that only these two people reside there. In such cases, it is essential to verify the relationship, nationality and residence status; ordinary flatmates cannot benefit from the student family member provision simply because they are also subject to NRPF restrictions.

My view is that where a full-time student lives with a spouse who meets the above criteria, they should first check eligibility for the whole-house exemption under Class N, rather than aiming directly for the 25 per cent discount.

It is also important to distinguish between the various application channels. Student exemptions and discounts granted on the basis of enrolment numbers do not constitute public funds under immigration regulations, and eligible NRPF holders may apply for them. The Council Tax Reduction/Support scheme for low-income families, however, does constitute public funds, and NRPF holders are generally not eligible to claim it. The latter is listed in Home Office ‘Public funds’, whilst the local government NRPF collaboration network has further clarified the distinction between discounts and exemptions. Although the names of the forms may both include the term ‘reduction’, the eligibility criteria differ.

[Source] UK Government’s ‘Council Tax A Brief Guide’; City Council’s ‘Guide to Applying for Student Exemptions’; Local Government NRPF Partnership Network’s ‘Council Tax’.
This article is for reference only; please consult a qualified solicitor for specific enquiries.

Please proceed as follows in accordance with these three points:

1. Request a student certificate for council tax from your university and check the start and end dates of your course; list all co-residents and their respective identities, and confirm any changes in household composition during the application period.
2. Submit your application via the local government’s student exemption portal; where family members are involved, attach proof of relationship, passports and documents demonstrating your residence status, and state the grounds for a Class N visa.
3. Keep the submission receipt and pay your current bills whilst awaiting a decision; once you have received the decision, check each item carefully to verify the exemption period, any discounts and how any overpayments have been handled.

Dealing with a UK legal matter? JustiScript can help