Care Home Council Tax Exemption Scotland

When a parent or relative moves into a care home or hospital and makes it their main residence, the family home they leave behind can become a council tax problem. If nobody else lives there, you might assume the council stops billing — but without the right exemption in place, you could face the full bill plus an empty home premium. Here is how to protect the property.

Class 5 Exemption: The Care Home or Hospital Route

Under Schedule 1 to the Council Tax (Exempt Dwellings) (Scotland) Order 1997, a Class 5 exemption applies when:

• The dwelling is unoccupied
• It was last occupied as the sole or main residence of a person
• That person now has their main residence in a hospital, residential care home, nursing home, or hostel — for the purpose of receiving personal care

When Class 5 applies, the council tax bill drops to zero. The exemption lasts as long as the person remains in care and the property stays unoccupied.

This is the most common scenario: Mum has dementia, moves into a residential care home, and leaves the family home empty. The property was her main residence, she is now in a care home receiving personal care, and the home is unoccupied. Class 5 applies.

Class 11 and Class 12: Other Care Vacancies

Two other exemption classes protect care-related vacancies:

Class 11 covers a dwelling left vacant because the resident moved elsewhere to provide personal care to someone who needs it due to old age, disability, illness, mental disorder, or substance dependence. For example, an adult child moves out of their own home to live with an ageing parent who needs care — the child's empty property may qualify.

Class 12 covers a dwelling left vacant because the resident moved elsewhere to receive personal care in a non-institutional setting. For example, someone moves in with a relative to be cared for, rather than going into a care home — their own empty property may qualify.

The Empty Home Premium Trap

The Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2023 allowed councils to charge up to 100% extra on second homes from 1 April 2024. From 1 April 2026, the Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2026 set a default 100% premium on second homes and long-term empty homes, but councils can set a different rate, including one above 100%. At the default rate, the premium doubles the standard bill.

But care-related vacancies are explicitly protected. Properties qualifying for Class 5, Class 11, or Class 12 exemptions are excluded from the empty home premium. As long as the correct exemption is in place, the council cannot surcharge the property.

The risk arises when families fail to apply for the exemption. Without it, a long-term empty home may face a premium once it has been unoccupied for more than 12 months. A separate six-month exclusion applies to some homes bought by a new owner who is carrying out qualifying repairs; it is not a general grace period.

When Other People Still Live There

Class 5 applies only to unoccupied dwellings. If the care home resident moves out but a spouse, adult child, or other family member continues living in the property, it is not unoccupied and Class 5 does not apply.

Instead, the departing person is disregarded when counting the remaining adults at the original address. If the departing person also had an SMI disregard, that disregard ceases to apply at the original property (it applied to them as a resident, and they are no longer resident). The remaining occupants are billed based on their own circumstances.

For example: a married couple, the husband has dementia and an SMI disregard, so the household had a 25% single person discount. The husband moves into a care home. The wife is now the sole occupant and qualifies for the standard 25% single person discount on her own — but the SMI disregard no longer reduces the bill further.

After a Death

If the sole resident with an SMI disregard dies, entitlement ends on the date of death. The property then falls under Class 6 — an exemption for unoccupied dwellings where the liability would fall on the estate of a deceased person. Class 6 applies until Confirmation (Scottish probate) is granted, and for up to six months after Confirmation.

Council tax after a death is complex. For detailed guidance on the estate period, Confirmation timelines, and executor liability in Scotland, see bereavementstartguide.com.

How to Apply for the Exemption

Notify your council's revenue department as soon as the person moves into a care home or hospital. You will typically need:

• Evidence of the care home admission (admission letter, care home contract, or NHS transfer letter)
• Confirmation that the property is now unoccupied
• The date the person left the property

Apply promptly. Some councils backdate the exemption to the date the person left, but delays in notification can complicate matters.

Our Scotland SMI and Disability Council Tax Guide includes the full care home transition section, covering the interaction between SMI disregards, care home exemptions, and the empty home premium rules, plus the evidence checklist for securing the right exemption from day one.

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