Lasting Power of Attorney and Council Tax After a Care Home Move

When a parent or relative moves into a care home and can no longer manage their own affairs — because of dementia, a stroke or any other condition affecting mental capacity — someone else has to deal with their council tax. The council will not simply accept instructions from a concerned family member. It needs authority it can verify. If the resident lacks capacity, that is usually a registered Property and Financial Affairs Lasting Power of Attorney or a Court of Protection deputyship order; if the resident has capacity, they can give the council formal written consent.

Why Councils Require Formal Authority

Council tax accounts contain personal financial information, so a billing authority must verify that a representative is authorised to manage the account or receive a refund.

A letter from the care home, a copy of the care needs assessment or a GP's note confirming the person lacks capacity does not itself grant authority. A registered LPA for Property and Financial Affairs or a Court of Protection deputyship order gives authority to act; if the resident has capacity, ask the council how they can provide formal consent.

Property and Financial Affairs LPA

A Property and Financial Affairs LPA is the standard route. If your parent set one up while they still had capacity, it covers managing their finances — including dealing with council tax. The LPA must be registered with the Office of the Public Guardian before you can use it.

When you contact the council to claim a Class E exemption, request a backdated refund or challenge a decision, send a copy of the registered LPA with your initial correspondence. Most councils will record you as the authorised representative on the account once they have verified the LPA, and all future correspondence goes to you.

If the LPA was made but not registered, you will need to register it first. If there are no mistakes in the application, registration takes eight to ten weeks via the Office of the Public Guardian.

What If There Is No LPA

If your parent lost capacity before making an LPA — which happens frequently with rapid-onset dementia — you cannot create one retrospectively. The usual route is to apply to the Court of Protection for a deputyship order. The application fee is £432; a new deputy also pays a £100 assessment fee and annual supervision fees, and a hearing fee or security bond may also apply. Once granted, a property and affairs deputy has authority to manage council tax.

While the Court of Protection application is pending, tell the council what authority is being sought and ask what it can record on the account. A family declaration or medical evidence may document the circumstances, but it does not replace authority to manage the account or receive a refund.

During this gap, council tax bills may keep running, and a pending deputyship or exemption claim does not itself suspend enforcement. Notify the council and ask how it will handle the account while the application is pending. If a summons or enforcement notice has arrived, contact a free debt-advice service promptly. Once you have authority, you can submit the Class E claim and request backdating; there is no statutory upper time limit for correcting an exemption account.

What an Attorney or Deputy Can Do

With a registered LPA or deputyship order, you can:

• Claim Class E, Class I or Class J exemption on the care resident's former property
• Request the single person discount on an occupied property where the care resident is disregarded
• Apply for Council Tax Reduction on behalf of the care resident
• Request backdated exemptions and refunds
• Appeal a council decision under Section 16 of the Local Government Finance Act 1992
• Correspond with the Valuation Tribunal for England if the dispute reaches a formal hearing

You are acting in the care resident's best interests. Any refund goes to their account (or estate), not yours.

Health and Welfare LPA Is Not Enough

A Health and Welfare LPA covers medical treatment decisions and care arrangements — not finances. If you only hold a Health and Welfare LPA, you cannot manage the council tax account. You would need to apply separately for a Property and Financial Affairs LPA (if your parent still has capacity) or a Court of Protection deputyship (if they do not).

The Council Tax Care Home Claim Guide includes template letters and a council notification checklist that cover the LPA documentation councils require — so the exemption claim is accepted on the first attempt rather than bounced for missing authority.

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