Halls of Residence Council Tax: Class M Exemption and PBSA

Class M: The Halls of Residence Exemption

University-managed halls of residence are exempt from council tax under Class M of the Council Tax (Exempt Dwellings) Order 1992. The exemption applies to the property itself — not to individual residents — which means no student living in qualifying halls ever needs to submit a personal exemption claim.

To qualify under Class M, the accommodation must meet one of two conditions:

• It's owned or managed by a prescribed educational establishment (a university or college listed under SI 1992/548) or by a charitable body
• A prescribed educational establishment has a nomination agreement covering the majority of bed spaces in the building

When Class M applies, the entire dwelling is exempt. The university or housing provider handles any council tax matters. You won't receive a bill.

Private PBSA: A Different Situation

Purpose-built student accommodation run by commercial operators — Unite Students, iQ, CRM Students, and similar — doesn't automatically qualify under Class M. The exemption requires ownership or management by a prescribed educational establishment or charitable body, or a formal nomination agreement covering most of the beds.

Many large PBSA blocks do have nomination agreements with local universities, which means they qualify under Class M even though a private company built and operates them. But not all do. If the operator is neither a prescribed educational establishment nor a charitable body, and has no majority nomination deal with a university, Class M doesn't apply.

In that case, individual self-contained units within the PBSA (cluster flats, studios) need to claim Class N exemption based on 100% student occupancy of each unit. If every resident in a cluster flat is a full-time student, the flat is exempt under Class N. But if one bedroom in the cluster gets rented to a non-student, the Class N exemption drops away and the flat becomes chargeable.

How to Check Whether Your Accommodation Qualifies

Your accommodation provider should be able to tell you whether Class M applies to your building. If they can't give a clear answer:

1. Ask your university's accommodation office whether a nomination agreement exists for that building
2. Check with your local council's revenues department — they'll have the property's council tax status on file
3. Look at your tenancy agreement: if it's between you and the university (even if a private company manages the building), Class M likely applies; if it's between you and a commercial landlord with no university involvement, it probably doesn't

If Class M doesn't apply, you'll need to claim Class N exemption for your specific flat or studio. That means every resident in your unit needs to submit a council tax student certificate to the council.

What About Summer Vacations?

Class M exemption applies year-round to the property, not just during term time. As long as the building continues to be provided predominantly for student accommodation, it stays exempt even when students go home for summer.

For Class N exemptions in private PBSA, the property remains exempt during academic vacations under Class N(2) of SI 1992/558, provided the tenancy continues and the accommodation is used (or intended to be used) as term-time accommodation.

When You Move Out of Halls Into Private Renting

The transition from halls to a private rented house is where students first encounter council tax as something they need to actively manage. In halls, the university handles everything. In a private house, the residents are responsible for claiming exemption.

Our Council Tax Student Exemption guide covers both scenarios — the Class M halls exemption and the Class N private dwelling exemption — along with the evidence you need, how to handle mixed households, and what happens during the gap between moving out of halls and starting a new tenancy.

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