Shropshire Council Tax Severe Mental Impairment Exemption and Disablement Band Reduction

What the Severe Mental Impairment Disregard Does

The Severe Mental Impairment (SMI) disregard is a national statutory provision that applies in every council area in England, including Shropshire. A person who qualifies as severely mentally impaired is "disregarded" for council tax purposes — treated as if they do not live in the property.

This has powerful practical effects. If the person with SMI is the only adult in the property (or the only adult who is not themselves disregarded for another reason, such as being a full-time student or a qualifying carer), the property qualifies for a 25% Single Person Discount. If every resident qualifies for a disregard, the property can be fully exempt from council tax under Class U.

For example: an elderly person with dementia living alone in their Shropshire home. If they qualify for the SMI disregard and are the sole resident, the property becomes exempt — no council tax to pay at all. If they live with a spouse who does not qualify for any disregard, the spouse becomes the only "countable" adult, and the property gets the 25% Single Person Discount.

Who Qualifies for SMI

Two conditions must both be met:

A medical certificate. A registered medical practitioner (usually the person's GP) must certify that the person is severely mentally impaired. The definition covers a severe impairment of intelligence and social functioning (however caused) that appears to be permanent. In practice, this includes conditions like dementia, Alzheimer's disease, severe learning disabilities, and serious brain injuries.

A qualifying benefit. The person must also be receiving (or recently have been receiving) a qualifying benefit. These include:

• Attendance Allowance
• Disability Living Allowance (middle or higher rate care component)
• Personal Independence Payment (daily living component at either rate)
• Incapacity Benefit or Severe Disablement Allowance
• Employment and Support Allowance
• Universal Credit with the Limited Capability for Work or LCWRA element
• Constant Attendance Allowance
• Armed Forces Independence Payment

The medical certificate and benefit evidence together form the application. Without both, the disregard cannot be applied.

How to Apply in Shropshire

Contact Shropshire Council's revenues team to request the SMI disregard. You will need to provide the medical certificate from the GP and proof of the qualifying benefit (an award letter or statement). The council may have its own application form for this, or you can submit the evidence through the CitizenAccess portal.

The disregard can be backdated. If the person met both conditions (the medical certification and the qualifying benefit) at an earlier date, ask for the disregard to be applied from that date. Councils have varied in how generously they backdate, but the principle is that the disregard applies from when the conditions were first met — not from when you applied. If the council refuses to backdate, you can appeal.

Family members and carers often handle this application on behalf of the person with SMI. A letter of authority or Power of Attorney documentation helps, but even without formal authority, contacting the council to start the conversation is straightforward.

The Disablement Band Reduction

Separately from SMI, properties that have been adapted to meet the needs of a disabled resident can qualify for a disability band reduction. This knocks the property down one council tax band — so a Band D property is charged at Band C rates, Band C at Band B, and so on. A Band A property (already the lowest) receives a one-sixth reduction instead.

The qualifying adaptations include:

• A room (other than a bathroom or kitchen) that the disabled person needs and uses predominantly to meet their disability needs
• An additional bathroom or kitchen needed for the disabled person's use
• Sufficient floor space for a wheelchair to be used indoors

The disabled person must be a resident of the property, though they do not need to be the bill-payer. Apply to Shropshire Council with evidence of the adaptation and the resident's disability.

How These Interact with Council Tax Reduction

Both the SMI disregard and the disability band reduction apply before Council Tax Reduction is calculated. If you qualify for CTR as well, the reduction is calculated on the already-reduced liability — so you benefit from all three.

A Shropshire household where a disabled person qualifies for SMI disregard, the property has been adapted (band reduction), and the remaining bill-payer qualifies for Council Tax Reduction could end up paying very little or nothing at all.

For a step-by-step walkthrough of how to claim Council Tax Reduction in Shropshire alongside these statutory discounts, including the evidence checklist and means test details, see the Shropshire Council Tax Reduction guide.

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