SMI Disregard vs Carer Disregard for Council Tax

Two Different Disregards

Council tax law in England provides two separate disregards for households affected by disability and care: the severe mental impairment (SMI) disregard and the carer disregard. Both remove a person from the household headcount for council tax purposes, but they apply to different people under different conditions. Confusing them is one of the most common mistakes in council tax claims — and it costs families money.

What the SMI Disregard Does

The SMI disregard removes a person with a severe mental impairment from the council tax adult count. It applies to the person with the condition, not to anyone caring for them.

To qualify, the person must have a medical certificate confirming a severe impairment of intelligence and social functioning that appears to be permanent, and they must be entitled to a qualifying benefit (Attendance Allowance, PIP daily living, DLA care at middle or highest rate, UC with LCWRA, or several others).

When the SMI person lives alone, or with only relevant persons under Class U, the dwelling qualifies for a Class U exemption — a 100% council tax reduction. If zero countable adults remain but Class U does not apply, a 50% discount applies. When one other countable adult remains, the household gets a 25% single-person discount.

What the Carer Disregard Does

The carer disregard removes the carer from the headcount — not the person being cared for. It is a separate provision under Schedule 1, paragraph 9 of the Local Government Finance Act 1992 and The Council Tax (Discount Disregards) Order 1992.

To qualify for the carer disregard, the carer must:

1. Live in the same property as the person they care for
2. Provide care for at least 35 hours per week
3. Not be the spouse, civil partner, or parent (of a child under 18) of the person receiving care
4. The person being cared for must receive a qualifying disability benefit (the highest rate of DLA care, either rate of Attendance Allowance, or the daily living component of PIP at either rate)

That third condition trips people up. A spouse or civil partner cannot be disregarded as a carer for their partner. An adult child caring for a parent can be disregarded — but not a husband or wife caring for their spouse.

The Spouse Problem

This is where most of the confusion lives. A married couple where one partner has dementia will often assume they qualify for some kind of "carer discount." They do — but not through the carer disregard.

If the person with dementia qualifies for the SMI disregard (medical certificate plus qualifying benefit), they are removed from the headcount. That leaves the spouse as the sole remaining counted adult, triggering a 25% single-person discount. The discount comes from the SMI disregard, not from any carer provision.

The spouse cannot also be disregarded as a carer, because the carer disregard explicitly excludes spouses and civil partners. So in a household of two — one SMI-qualifying, one spouse — the maximum discount is 25%. The bill goes from 100% to 75%.

Some spouses believe they should qualify for a larger discount because of the care they provide. The statute does not allow it. The carer disregard can also apply to an eligible adult child caring for a parent; being a family member alone does not prevent qualification.

When Both Disregards Apply Together

In some households, both the SMI disregard and the carer disregard apply simultaneously:

Example: Parent with dementia, adult child (non-carer), and live-in professional carer. The parent is disregarded under SMI. The live-in carer is disregarded under the carer provisions (they are not a spouse and they provide 35+ hours/week). That leaves the adult child as the sole counted adult — a 25% discount.

Example: Person with SMI living alone with a live-in carer. The person with SMI is disregarded. The carer is disregarded. Zero counted adults remain, so the standard 50% discount applies.

Example: Person with SMI and their adult daughter who provides 35+ hours/week of care. The person with SMI is disregarded. The daughter qualifies for the carer disregard (she is not a spouse, she lives there, she provides 35+ hours/week). Zero counted adults remain, so the standard 50% discount applies.

How to Work Out Your Household

Start by listing every adult (18+) living at the property. Then remove:

1. Anyone who qualifies for the SMI disregard (certified + qualifying benefit)
2. Any live-in carer who meets all four carer disregard conditions
3. Full-time students, student nurses, apprentices, and other statutory disregards

Count who remains. Zero counted adults: 50% discount (or Class U if applicable). One counted adult: 25%. Two or more: full bill.

If you are unsure how the disregards interact in your household, our SMI Council Tax Exemption Guide includes household composition worksheets that map every common living arrangement to the correct discount level.

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