The Council Tax (Discount Disregards and Exempt Dwellings) (Amendment) (England) Regulations 2025
These regulations, effective March 25th, 2025, modify existing council tax legislation in England.
They expand the categories of individuals eligible for council tax discounts and exempt dwellings to include those participating in the Homes for Ukraine Sponsorship Scheme and those entitled to a government thank you payment under associated guidance.
The changes apply to both discount disregards and exempt dwelling definitions, ensuring consistent treatment of Ukrainian arrivals within the council tax system.
Arguments For
Intended benefit: Extends council tax discounts and exemptions to individuals arriving under the Homes for Ukraine scheme, aligning with the government's support for Ukrainian refugees.
Evidence cited: The regulations reference the Homes for Ukraine Sponsorship Scheme within the Immigration Rules and the “Homes for Ukraine: Ukraine Permission Extension scheme - guidance for councils” published by the Ministry of Housing, Communities and Local Government.
Implementation methods: Amendments to existing Council Tax regulations to incorporate specific classes of persons benefiting from the Homes for Ukraine scheme.
Legal/historical basis: The regulations are made under the powers conferred by sections 4, 113(1) and 116(1) of, and paragraph 11 of Schedule 1 to, the Local Government Finance Act 1992.
Arguments Against
Potential impacts: Potential administrative burden on local authorities to determine eligibility of individuals under the expanded exemption and discount provisions.
Implementation challenges: May require additional training for local authority staff to properly implement the amended regulations.
Alternative approaches: Could potentially use different mechanisms within existing council tax legislation to accomplish the same support for Ukrainian refugees.
Unintended effects: Possible cost implications for local authorities, though not explicitly addressed in the supporting documentation.
- Citation, commencement, extent and application (1) These Regulations may be cited as the Council Tax (Discount Disregards and Exempt Dwellings) (Amendment) (England) Regulations 2025 and come into force on 25th March 2025. (2) These Regulations extend to England and Wales. (3) Regulation 3 applies in relation to billing authorities in England only.
This section establishes the title, effective date, and geographical scope of the regulations.
The regulations are titled "Council Tax (Discount Disregards and Exempt Dwellings) (Amendment) (England) Regulations 2025" and will take effect on March 25, 2025.
They apply to England and Wales, but Regulation 3 specifically applies only to billing authorities in England.
- Amendment of the Council Tax (Additional Provisions for Discount Disregards) Regulations 1992 In regulation 3(1) (persons of other descriptions: England) of the Council Tax (Additional Provisions for Discount Disregards) Regulations 1992 for Class G substitute— “Ukraine visa schemes Class G: a person— (a) who holds permission to enter or to stay in the United Kingdom granted under the Homes for Ukraine Sponsorship Scheme route in Appendix Ukraine Scheme of the Immigration Rules; or (b) in respect of whom another person is eligible for a thank you payment in accordance with guidance entitled “Homes for Ukraine: Ukraine Permission Extension scheme - guidance for councils” published by the Ministry of Housing, Communities and Local Government on 24th February 2025.”
This section amends the 1992 Council Tax (Additional Provisions for Discount Disregards) Regulations.
It modifies Class G to encompass individuals granted UK entry or stay under the Homes for Ukraine Sponsorship Scheme or those for whom another person is eligible for a government 'thank you' payment, as defined by the February 24th, 2025 guidance.
This expands the criteria for council tax discounts.
- Amendment of the Council Tax (Exempt Dwellings) Order 1992 In article 2(1) of the Council Tax (Exempt Dwellings) Order 1992 for the definition of “relevant Ukrainian person” substitute— ““relevant Ukrainian person” means a person— (a) who holds permission to enter or to stay in the United Kingdom granted under the Homes for Ukraine Sponsorship Scheme route in Appendix Ukraine Scheme of the Immigration Rules; or (b) in respect of whom another person is eligible for a thank you payment in accordance with guidance entitled “Homes for Ukraine: Ukraine Permission Extension scheme - guidance for councils” published by the Ministry of Housing, Communities and Local Government on 24th February 2025;”.
This section amends the 1992 Council Tax (Exempt Dwellings) Order.
It redefines "relevant Ukrainian person" to include individuals with permission to enter or stay under the Homes for Ukraine Sponsorship Scheme or individuals for whom someone else receives a government thank you payment, based on the February 24th, 2025 guidance.
This ensures dwellings occupied by these individuals maintain their exempt status.
Explanatory Note (This note is not part of the Regulations) These Regulations amend the Council Tax (Additional Provisions for Discount Disregards) Regulations 1992 (“the Discount Disregards Regulations”) and the Council Tax (Exempt Dwellings) Order 1992 (“the Exempt Dwellings Order”). Under Part 1 of the Local Government Finance Act 1992 (“the 1992 Act”) council tax is payable in respect of dwellings which are not exempt. The Exempt Dwellings Order prescribes classes of dwellings which are exempt from council tax. Section 11 of the 1992 Act makes provision for discount in the amount of council tax payable where there is only one resident of a dwelling or where all residents (or all but one) fall to be disregarded. Schedule 1 makes provision for persons who are to be disregarded. Regulation 3 of the Discount Disregards Regulations prescribes additional classes of person who are to be disregarded. Regulation 2 amends the Discount Disregards Regulations to expand existing Class G in those Regulations to include persons who previously held permission under the Homes for Ukraine Scheme and in respect of whom a person is eligible to receive a thank you payment under the relevant Government guidance. Hard copies of the guidance may be obtained free of charge by writing to the Ministry of Housing, Communities and Local Government, Fry Building, 2 Marsham Street, London SW1P 4DF. Regulation 3 amends the Exempt Dwellings Order to expand the definition of “relevant Ukrainian person” to ensure that a person in respect of whom a person is eligible for a Government thank you payment being accommodated in an exempt dwelling does not affect the exempt status of the dwelling. A regulatory impact assessment has not been prepared as this instrument amends an existing local tax regime.
The explanatory note summarizes the regulations' purpose and impact.
The regulations modify existing council tax rules to accommodate Ukrainian refugees under the Homes for Ukraine scheme.
It clarifies the amendments to the discount disregard and exempt dwelling regulations and provides contact information to obtain the relevant government guidance.
A regulatory impact assessment was deemed unnecessary because the change involves an existing tax regime.