Bolton Council Tax Severe Mental Impairment Exemption

What the SMI Disregard Means

Severe Mental Impairment (SMI) is a legal definition used in council tax law, not a medical diagnosis. It means a person has a severe impairment of intelligence and social functioning that appears to be permanent — caused by conditions like dementia, Alzheimer's disease, severe learning disabilities, stroke, or brain injury.

When someone qualifies for SMI status, they're disregarded for council tax purposes. They're treated as if they don't live in the property. Depending on who else lives there, this can result in either a 25% discount or a complete exemption from council tax.

Who Qualifies in Bolton

To be classified as severely mentally impaired for council tax purposes in Bolton, a person needs to meet two requirements:

1. Medical certification — a registered medical practitioner (such as a GP, consultant, or hospital doctor) must certify that the person has a severe impairment of intelligence and social functioning that appears to be permanent.

2. Qualifying benefit — the person must be entitled to one of these benefits:

   • Universal Credit with limited capability for work or limited capability for work-related activity
   • Employment and Support Allowance (ESA)
   • Attendance Allowance
   • Disability Living Allowance with the middle- or highest-rate care component
   • Personal Independence Payment daily living component
   • Working Tax Credit with a disability element
   • Income Support with a disability premium
   • Constant Attendance Allowance
   • Severe Disablement Allowance
   • Disablement Pension with Constant Attendance Allowance
   • Unemployability Supplement or Allowance
   • Incapacity Benefit
   • Armed Forces Independence Payment

Bolton also says a person who would be entitled to one of these benefits but is excluded by age can still qualify. A medical condition alone is not enough: the benefit test must also be met. If no benefit has been claimed, check whether the person is entitled to a qualifying benefit before assuming the SMI application must wait.

How the Discount or Exemption Works

The outcome depends on household composition:

• SMI person living alone — 100% exemption (no council tax to pay), known as Class U exemption
• SMI person living with one other non-disregarded adult — 25% single person discount (the SMI person is disregarded, so the other adult is treated as living alone)
• Two SMI people living together — 100% exemption
• SMI person living with a carer who qualifies for the carer disregard — potentially 100% exemption if no other adults are present, since both are disregarded

The exemption or discount applies from the date the medical certification and qualifying benefit are both in place, and Bolton Council can backdate the reduction.

How to Apply

Contact Bolton Council's Revenues and Benefits team on 01204 331599 to request an SMI disregard application. You'll need:

• The person's council tax account number
• A completed medical certificate from their doctor (the council can provide the form for the GP to sign)
• Evidence of entitlement to a qualifying benefit (for example, a DWP award letter for PIP, DLA, Attendance Allowance, ESA, or Universal Credit)

If the person lacks capacity to manage their own affairs, a family member or appointee can apply on their behalf. Bolton Council also operates a Home Visit Team for housebound residents who need help completing forms.

The SMI disregard is separate from Council Tax Reduction and can be claimed alongside it. If the household is also on a low income, applying for CTR on top of the SMI discount can reduce or eliminate the remaining bill. The full Bolton CTR guide covers how statutory discounts and CTR interact in the calculation.

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