Tower Hamlets Council Tax Student Exemption and Severe Mental Impairment Discount

Students and people with severe mental impairment can qualify for substantial council tax reductions in Tower Hamlets — up to a full exemption in some cases. These are statutory discounts, separate from the means-tested Council Tax Reduction scheme, and they apply regardless of your income.

Student Exemption (Class N)

If a property is occupied only by full-time students, it is exempt from council tax under Class N. No bill. No reduced rate. Zero.

To qualify as a full-time student, you must be enrolled on a course that:

• Lasts at least one academic year, and
• Requires attendance for at least 24 weeks in each year, and
• Requires an average of at least 21 hours of study, tuition, or work experience per week

This covers most undergraduate degrees, full-time postgraduate courses, and many college courses. Tower Hamlets also recognises certain non-full-time courses for students under 20, including qualifying courses lasting more than three months and requiring more than 12 hours of study per week. The course must not be higher education, correspondence, or job-related, and study must take place between 8am and 5:30pm. Other part-time students and courses lasting less than a year do not meet the full-time course test.

How to prove it: For most institutions, Tower Hamlets requires a student certificate (sometimes called a council tax exemption certificate) from your university or college. Upload it through the council's online portal. Queen Mary University of London students do not need to upload a certificate, but must register their Tower Hamlets address with the university before applying; the university sends enrolment information directly to the council.

Mixed Households: Students Living with Non-Students

If one person in the household is a full-time student and the other is not, the property doesn't qualify for the Class N exemption. Instead:

• The non-student is liable for council tax
• The student is "disregarded" for counting purposes
• If the non-student is the only counted adult, they qualify for the 25% Single Person Discount

In a flat share where three of four occupants are students and one is working, the working resident pays council tax — potentially with a 25% SPD if they're the only non-student.

Severe Mental Impairment (SMI) Discount

A person with severe mental impairment is disregarded for council tax purposes if they meet two conditions:

1. Medical certification — a doctor (GP or hospital consultant) certifies that they have a severe impairment of intelligence and social functioning which appears to be permanent
2. Qualifying benefit — they receive at least one qualifying benefit, such as Attendance Allowance, the middle or higher rate care component of DLA, the standard or enhanced daily living component of PIP, the disability element of Working Tax Credit, Incapacity Benefit, Severe Disablement Allowance, Income Support with a disability premium, ESA, or Universal Credit with a limited capability for work element

Both conditions must be met. A diagnosis alone is not enough.

Once certified, the person is disregarded from the council tax count. The practical effects:

• If they live alone: the property is fully exempt (Class U exemption) — no council tax at all
• If they live with one non-disregarded adult: that adult gets the 25% Single Person Discount
• If they live with one other adult, including a partner: because the SMI person is disregarded, the other adult may qualify for the 25% Single Person Discount. This disregard affects the council tax adult count; Council Tax Reduction is a separate means test, so do not assume the SMI person's or partner's other income is disregarded.

How to Apply for SMI Disregard

Contact Tower Hamlets Council Tax on 020 7364 5002 or apply through the My Account portal. You'll need:

• The completed medical certificate from the GP or consultant
• Proof of the qualifying benefit (award letter or statement)

The disregard can be backdated. If a diagnosis and qualifying benefit have been in place for years but nobody applied, Tower Hamlets should backdate the exemption or discount to the date both conditions were first met. This can result in a substantial refund of overpaid council tax.

How These Interact with Council Tax Reduction

Student exemptions and SMI disregards are applied before the CTR means test. If the exemption or discount already reduces your bill to zero, CTR isn't needed. If it reduces your bill partially (for example, a mixed household getting the 25% SPD), CTR then runs against the reduced amount.

These statutory discounts are always worth claiming first — they don't require a means test and can be backdated further than CTR.

For guidance on combining these discounts with the full range of Tower Hamlets council tax support, see the Tower Hamlets Council Tax Reduction guide.

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