Can foster carers combine a council tax exemption with another council tax discount?

In most cases, a council tax exemption cannot be combined with another discount for the same property and period. An exemption normally removes the council tax charge altogether, so there is no remaining bill to which a further discount can be applied. If more than one form of relief appears to apply, the council will decide which provision is relevant under its own rules.

The position depends on what the council means by a foster carer exemption. There is not one universal council tax exemption that automatically applies to every foster carer in England. Some arrangements may be based on a council’s local policy, while other reductions may relate to the people living in the property, the property itself or the household’s financial circumstances.

These are separate types of help:

• An exemption generally means that a property is not liable for council tax under a particular legal category or local arrangement.
• A discount reduces the amount charged because of the circumstances of the occupants or another qualifying condition.
• Council Tax Reduction is a means-tested scheme for people on a low income. It is administered by the local authority and is separate from fostering allowances.

If a council accepts that a foster carer qualifies for a full exemption, a single-person discount or another ordinary council tax discount will not usually create an additional reduction. Applying for both does not normally produce two deductions from the same bill.

A different result may apply where the first reduction does not remove the whole charge. For example, a council may need to consider whether a local foster carer discount can be used alongside Council Tax Reduction, or whether one calculation must be made before the other. The ordering and eligibility rules are set by the council, so this should be confirmed with the council tax department rather than assumed.

Fostering allowances should also be kept separate from council tax relief. An allowance paid to meet the costs of caring for a child is not automatically a council tax discount or exemption. The council may have its own rules about how household income is treated when assessing Council Tax Reduction, and those rules may differ from the way fostering allowances are treated for other benefits or tax purposes.

When asking the council to review the account, provide:

• your foster carer approval details, if the local scheme requires them;
• the address and council tax account number;
• the date from which you believe the relief should apply;
• details of any discount or Council Tax Reduction already being applied; and
• any evidence requested about the people living in the property or your household income.

Ask the council to confirm in writing which relief has been applied, whether it is a full exemption or a partial reduction, the effective dates, and whether any other discount or Council Tax Reduction can be considered as part of the same assessment. If the decision is refused or applied from the wrong date, the council should explain its review or appeal process.

Foster carers should not stop paying an existing council tax bill simply because an application has been made. Continue with the current payment arrangement unless the council confirms a revised amount. Your fostering agency or local fostering team may be able to help you understand the supporting evidence, but the council tax authority makes the decision about the account.