Do I pay council tax if I move to a care home?
The short answer: it depends on what happens to your home. If you move into a care home permanently and your property is left empty, it is usually exempt from council tax. If someone else lives there, or you retain the property, you will likely still have a bill to pay.
Council tax is one of those financial details that can easily get overlooked during the upheaval of moving into care. Getting it wrong can mean paying more than you need to — or missing out on a refund you’re entitled to. Here’s what you need to know.
How Council Tax Works in the UK
Council tax is a local charge on residential properties. The amount you pay is based on your property’s valuation band and the rate set by your local council. Crucially, it is the resident — not the property owner — who is usually liable.
This distinction matters when someone moves into a care home. The person living in the property becomes responsible for the bill, which changes things significantly depending on what happens to your former home.
The Key Scenarios: What Applies to You?
Your home is now empty
If you have made a permanent move into a care home and your property is left unoccupied, it should be exempt from council tax — meaning no charge applies.
You must inform your local council of the change. The exemption does not apply automatically in all cases, and if you delay notifying them, you may continue receiving bills unnecessarily.
Important: If anyone moves into the property — even temporarily — they become liable for the council tax. The exemption only applies to genuinely unoccupied homes.
Someone else now lives in your property
If a family member, renter, or anyone else moves into your former home as their primary residence, council tax responsibility transfers to them. You would no longer be liable, providing you have permanently moved into care.
You still own the property but nobody lives there
If your home is empty and you retain ownership, the exemption for empty properties may still apply — but this varies between councils. Some councils apply a time limit after which an empty property surcharge kicks in. Always check directly with your local council.
Severe Mental Impairment (SMI)
People with a severe mental impairment — a condition that significantly affects their cognitive function and social behaviour — may be fully exempt from council tax, regardless of their living situation.
Conditions that can qualify include:
- Advanced Alzheimer’s disease or other dementias
- Parkinson’s disease
- Severe stroke
- Profound learning disabilities
To claim this exemption, you will need:
- A medical certificate from a GP or registered medical professional confirming the diagnosis
- Evidence that you receive at least one qualifying benefit, such as Attendance Allowance, Disability Living Allowance (DLA), or Personal Independence Payment (PIP)
If you were previously exempt under SMI rules but have now moved into a care home, you must reapply. Your circumstances have changed and eligibility needs to be reassessed.
Discounts and Reductions Worth Asking About
Even if you do not qualify for a full exemption, you may be entitled to a reduction.
| Reduction | What It Is | Who It Applies To |
|---|---|---|
| Single Person Discount | 25% off council tax | People who lived alone before moving into care |
| Council Tax Reduction | Means-tested support with the bill | People on low incomes |
| Hardship Fund | Additional local support | Varies by council — always worth asking |
If you were receiving a single person discount before moving into care, inform your council about your change in circumstances. Depending on the situation, a discount may still apply.
Common Questions Answered
What if I only own a share of the property? Joint owners are usually both liable for council tax. If one owner moves into care, the remaining owner typically becomes solely responsible. Your council can clarify the specifics.
What if my stay in the care home is temporary? If your move is short-term — for example, respite care — you most likely remain liable for council tax on your home. The definition of “temporary” can vary between councils, so always check.
Do I still pay if I keep my house but move into care permanently? Yes, in most cases. If the property is not empty, not exempt, and not occupied by someone else, you remain liable.
What illnesses qualify for council tax exemption? There is no fixed list of qualifying conditions. The test is whether the condition causes Severe Mental Impairment — a significant and permanent effect on intelligence and social functioning. A doctor can advise whether your circumstances might qualify.
Who Else is Exempt from Council Tax?
Certain groups are “disregarded” for council tax purposes, meaning they are not counted when working out who is liable. People who are commonly disregarded include:
- Residents living permanently in care homes, hospitals, or certain shelters
- People with Severe Mental Impairment (SMI)
- Full-time students
- Low-paid live-in care workers
- People caring for a disabled person who is not their spouse or dependent child
- Members of certain religious communities
- Prisoners
If several people in a household are disregarded, this can reduce the number of liable residents — sometimes resulting in a discount.
Act Quickly — Timing Matters
Councils need to be informed of changes in your living situation as soon as possible. Delays can mean:
- Paying council tax you do not owe
- Missing out on an exemption or reduction from the date of your move
- Losing the ability to backdate a claim (though backdating is sometimes possible in limited circumstances)
If you are planning a move into a care home, adding council tax notification to your checklist is well worth doing early.
Financial Implications Beyond Council Tax
Council tax is just one piece of the financial picture when moving into care. Understanding how benefits, pension income, and property ownership interact is equally important. For example, moving into a care home can affect entitlements such as Attendance Allowance, and it is worth reviewing all ongoing financial arrangements when the move happens.
Our guide on how moving into a care home affects your pension covers the state pension implications in detail, and our article on who pays for elderly care explains the broader funding picture.
Useful Resources
- Age UK — ageuk.org.uk — general benefits and financial advice for older adults
- Citizens Advice — citizensadvice.org.uk — guidance on council tax disputes and reductions
- Your local council website — for the specific rules and exemption processes in your area
Summary
| Situation | Council Tax Outcome |
|---|---|
| Home is empty after permanent move into care | Usually exempt — notify your council |
| Someone else lives in your former home | They become liable, not you |
| You keep the property, no one lives there | You may still owe — check local rules |
| You have Severe Mental Impairment (SMI) | Likely exempt — needs medical certificate and qualifying benefit |
| Temporary stay in care (e.g. respite) | You remain liable for your home |
If you are unsure about your situation, contact your local council directly. The rules can vary and it is always better to ask than to assume.
Laura joined Lidder Care in 2022, bringing over 20 years of experience in caring for older adults. Her impressive career in the care industry has seen her rise from a Care Assistant to Team Leader, then Head of Care and ultimately a Home Manager.
As the Registered Manager at Newgate Lodge Care Home, Laura is dedicated to fostering a happy and safe environment where residents and their families can spend quality time together. Laura’s favourite aspect of her role is engaging with residents and their families.
In her spare time, Laura enjoys spending time with friends and family, loves summer holidays and enjoys and diving into a box set in the winter.