Consultation on the proposed changes to Council Tax discounts, disregarded persons and exemptions

The Welsh Government is committed to making Council Tax in Wales fairer and more progressive, and we have achieved several improvements over the decades since the Council Tax system was created in 1993. We have consulted on future Council Tax reforms, including revaluation and redesigning the property tax bands in 2028, to make them fairer for people with less wealth. This plan has been approved by the Senedd through the Local Government Finance (Wales) Act 2024. 

As we prepare for those major changes, we are working on improvements to the range of discounts, disregards and exemptions which operate in the Council Tax system. This consultation concludes a review of each category and seeks views on proposed changes. It also confirms the way forward for some changes that were previously consulted on  in the A Fairer Council Tax: phase 2 consultation.  

This consultation will be open for a 12-week period and will close on 15 August 2025. 

The consultation applies only to Wales. 

Background

Providing discounts and exemptions from Council Tax are important in helping to support certain households financially, to tackle poverty in communities, and make tax collection more efficient. Most of these arrangements have been in place since Council Tax was created in 1993, and we need to ensure they remain relevant and fair.

Our goal in reviewing the discounts, disregards and exemptions is to improve and modernise the system to make Council Tax fairer. This includes making the system more accessible, encouraging people to claim their entitlements, removing stigma from some types of support, and targeting support more effectively.

Discounts

The make-up of Council Tax has both a property element and a person element. Council Tax is based on the general assumption that at least 2 liable adults live in a property and can contribute towards paying the Council Tax bill. If only one liable adult lives there, the property gets a 25% discount on the Council Tax (commonly known as the single person discount). If there are no liable residents, the property gets a 50% discount.

These discounts don't always mean there is only one adult in the household or that the property is empty, this is because some individuals are not counted for the purposes of Council Tax (“disregarded persons”). This can make the Council Tax system complex for taxpayers to understand.

Disabled band reduction

Properties are placed in one of 9 Council Tax bands: A, B, C, D, E, F, G, H or I. Properties adapted for use by disabled residents can get a Council Tax band reduction, where the bill is reduced by one band. For example, a Band B property adapted for disabled residents is charged as if it were a Band A property. The property adaptations must meet certain criteria to be eligible for a band reduction.

Disregarded persons (someone who is not counted towards Council Tax)

Some people are not counted (‘disregarded’) when calculating how many people live in a property for Council Tax purposes. Examples include people with a severe mental impairment, students, and young care leavers. If there are 2 adults in a property and one is disregarded, a 25% discount applies. If all adults are disregarded, a 50% discount applies.

Exemptions

Certain types of properties are exempt from paying Council Tax. Some exemptions are temporary, such as 6 months, while others can be indefinite. Examples of exempt properties include those occupied only by students or those repossessed by a mortgage lender.

Premiums

Properties can also be charged an extra amount of Council Tax (a ‘premium’) if it has been empty for more than 1 year or if it is not a person’s sole or main residence (often referred to as a second home). Each council decides whether to apply a premium in its areas and the level at which to apply it. Having made relatively recent changes to the criteria for premiums in 2023, the review has concluded that no further change is needed at this stage.

The rules for Council Tax discounts, disregards, and exemptions come from various laws, including the Local Government Finance Act 1992. Feedback from our Fairer Council Tax: phase 1 consultation in 2022 supported giving the Welsh Government more flexibility to change these rules through new legislative powers. The Senedd then enacted the Local Government Finance (Wales) Act 2024 to provide those powers.

We now plan to simplify and consolidate parts of the legislation to provide clarity, flexibility, and future-proof understanding of Council Tax rules. Using powers from the Local Government Finance (Wales) Act 2024, we will develop new and consolidated regulations for all the discounts, disregards, and exemptions. These regulations will combine most of the current laws into one place improving transparency and accessibility, and these will take effect from April 1, 2026.

The Welsh Government has completed a review of each category of Council Tax discount, disregarded person and exemption to ensure the arrangements remain relevant to our policy ambitions and help to achieve a fairer system.

The purpose of reviewing the range of discounts, disregards and exemptions was to improve and modernise the system so that it contributes to our aim of making Council Tax fairer. This includes making the system more accessible for taxpayers, encouraging people to take up their entitlement to support, removing the potential stigma associated with some types of support, and targeting support more effectively.

Taking account of the wide-ranging views from previous consultations (in 2022 and 2023), we have worked closely with local government, local organisations and networks that represent the people of Wales to consider and review each category. As well as a range of discussions, this has included a focussed working group of council practitioners.

Annex A summarises the outcome of the review for each category with an indication of timescales for proposed changes. 

The one-adult discount (25%)

If only 1 liable adult lives in a property, the Council Tax bill is reduced by 25%. While this discount is widely referred to as the ‘single person discount,’ it not only applies where there is 1 adult living in a property but also in many cases where there is more than 1 adult, and all but 1 of them is ‘disregarded’ (not counted) for Council Tax purposes. This means, for example, that single-parent households are eligible for the 25% discount, but so too are many 2-adult households where 1 of the adults is disregarded for some reason (e.g., because they are a care worker, have a severe mental impairment, or are a young care leaver). This can be quite complex to understand and leads to misconceptions about the 1 adult discount.

In 2025 there are estimated to be over 536,000 households in Wales in receipt of a 25% discount, either because the household contains only 1 liable adult or because all but 1 of the adults is disregarded for Council Tax purposes. This accounts for a large proportion of the total 1.4 million properties in Wales liable for Council Tax, making it the largest and one of the most important discounts.

We have been clear there are no intentions to remove this discount as part of our review. It currently provides essential financial support to a large number of households, and we believe the concept of it still holds generally in relation to ability to pay. To remove or lower the discount would place more pressure on the Council Tax Reduction Scheme, and where take-up is variable for these other types of support, the 25% discount has the added benefit of providing at least some universal support as households move in and out of work. We recognise the views of some stakeholders that the discount may be encouraging under-occupation of larger homes, but on balance we believe it is too important to remove at the current time. The Welsh Government will therefore make provisions in the Council Tax (Discount, Disregards, and Exemptions) Regulations 2026 for a discount of:

• 25% for a property where there is 1 adult liable
• 25% for a property where there is more than 1 adult liable, and all but 1 of them is disregarded
• 50% for a property where all the adults are disregarded

Empty property discount (50%)

When the Council Tax was introduced, a 50% discount applied to most empty properties. However, in 2004, the Welsh Government legislated to allow local councils to remove or reduce the 50% discount in certain cases. All local councils in Wales have used these powers to stop applying a 50% discount to properties with no residents. The Welsh Government also legislated to prevent the removal of the 50% discount in a small number of cases.

As a result, there remain a small number of properties with no residents that continue to receive a 50% discount. These include the following:

• a pitch occupied by a caravan, or a mooring occupied by a boat
• an empty property where the former occupier has died and the liable person is their personal representative, and neither probate nor letters of administration have been granted
• a property which is left empty because a person lives in a different, job-related, property which has been provided to them for the purposes of carrying out their employment

The phase 2 consultation set out our intention to remove the statutory 50% discount for properties with no liable resident from the legislation because it is no longer applied by any Welsh councils, except in the circumstances listed above. A discount for empty properties also no longer aligns with our approach to premiums on long-term empty properties, and our focus on encouraging these homes back into use. The Welsh Government has considered the responses to the consultation relating to Exemption F where the former occupant has died, and probate or letters of administration have not yet been granted. We will not restate the 50% discount but extend the period of exemption after probate has been granted (see Exemption F). 

The Welsh Government will make provisions in the Council Tax (Discount, Disregards and Exemptions) Regulations 2026 to provide a discount of:

• 50% for a pitch occupied by a caravan, or a mooring occupied by a boat
• 50% for a property which is left empty because a person lives in a different, job-related, property which has been provided to them for the purposes of carrying out their employment

Exemption F: unoccupied property where probate or letters of administration have not yet been granted

Exemption F is currently in place for a property that has been unoccupied since the former resident’s death where the only person liable for Council Tax would be the deceased’s personal representative, and no grant of probate or letters of administration has been made.

Currently the exemption applies for each day for which the executor or administrator is liable and lasts up to 6 months after the grant of probate or letters of administration. In practice prior to obtaining probate or letters of administration, there is no minimum period for the exemption to last, and this can result in properties being exempt for lengthy periods. Our review found cases of empty properties receiving exemption F for more than 20 years, which no longer aligns with our efforts in other areas of the Council Tax system to encourage empty properties back into use.

The Phase 2 consultation sought views on whether there should be a time limit on Exemption F and a reasonable period for obtaining probate or letters of administration. Most responses supported the proposal to introduce a time limit, suggesting that 2 years from the deceased person’s death would be a reasonable period to allow for probate or letters of administration before Council Tax should be payable. However, several written responses indicated that the six-month period of exemption from Council Tax after probate is granted does not provide enough time for the deceased's representatives to manage the clearance and sale of the property. 

The Welsh Government will make provision in the Council Tax (Discount, Disregards and Exemptions) Regulations (Wales) 2026 to amend Exemption F to apply for up to 2 years from the date of the deceased's death or until probate or letters of administration are granted, whichever comes first. The regulations will also provide that a further 12-month exemption from Council Tax will apply after a grant, whether that occurs within or outside the initial 2 year exemption. This replaces the current 6 month period. No exemption or discount will be available thereafter, and if the property becomes occupied within the 12 months after probate, then the new occupier will pay Council Tax. It should also be noted that if the property is left empty after the 12 months following probate, the property may be charged a Council Tax premium if the council has decided to charge premiums on long-term empty properties.

The period before the regulations come into force will not be considered when determining the exemption's applicability and the date of coming into force will be taken as the date of the death of the deceased. This will make the proposed change in rules simpler for local councils to operate from a consistent start date onwards. Where a property is in receipt of the exemption when the regulations come into force the calculation of its exemption and any further period following a grant will begin on the coming into force date.

Exemption U and Disregard: people with a severe mental impairment 

Currently a property is exempt from Council Tax if it is occupied only by a person who is severely mentally impaired. If they reside with another adult who is not exempt, they will be disregarded for the purposes of Council Tax meaning the household will get a 25% discount. If 2 or more adults are disregarded, a 50% discount is provided.

The phase 2 consultation proposed changing the title to ‘significant brain impairment’ or ‘significant brain condition’ defined as ‘a significant (and permanent) mental condition or change, that impacts on the brain's ability to function’. The consultation also sought views on the qualifying criteria.

There were a significant number of written responses in relation to these proposals from some stakeholders with specific expertise in this area, such as local councils, medical practitioners and third sector representatives, who offered alternative views and suggestions to the proposals set out in the consultation. The Welsh Government has carefully reviewed the comments and engaged further with key stakeholders including local council practitioners and third sector partners, who consider the comments to be sufficiently important to reconsider the original proposals. 

The Welsh Government will make provisions in the Council Tax (Discount, Disregards and Exemptions) Regulations (Wales) 2026 to replace the term ‘severely mentally impaired’ with ‘significant cognitive impairment’ defined as ‘a severe and permanent mental condition or neurological change that impacts on the brains ability to function and has a significant impact on an individual’s daily life’. This title and definition was found to achieve the optimum balance amongst views and is compliant with the Social Model of Disability.

There will be no change to the qualifying criteria other than to remove redundant references to particular benefits which are no longer awarded, and to update references to other benefits which are part of the existing qualifying criteria.

The current position

A reduction applies to a property’s Council Tax band as a recognition that some people with disabilities need to live in adapted homes. In 2025 to 2026 there are an estimated 14,015 properties in Wales in receipt of a disabled band reduction. The property is moved down a Council Tax band for example, from Band D to Band C, or Band B to Band A, paying less Council Tax. However, due to the reduction applying to the property band (rather than a percentage reduction to the bill) this can be regressive as it provides larger reductions for more valuable properties. 

In reviewing the way this reduction works, we found that the assessment process complicates administration, as the resident must have an additional room specifically designated for the needs of the disabled person. There are instances where adaptations, such as converting an existing bathroom into a wet room, cannot be considered because it does not add an additional room. In older properties, adaptations often require widening doors for wheelchair access. However, newer builds typically have wider doors as standard, eliminating the need for such adaptations. While substantial modifications are possible in larger properties, smaller properties limit the potential for such changes.

Following the engagement undertaken as part of the review, we have not come to a clear decision on whether we should change the Disabled Band Reduction for Council Tax. We have concluded that the assessment process for reductions presents significant challenges, particularly in ensuring that the needs of disabled residents are adequately met. It is crucial to consider these factors to create a fair and effective system that accommodates all residents' needs. 

The Welsh Government is not proposing to make any change to the disabled band reduction at this time, but we are interested in your views and gathering further evidence on how this could be improved. We welcome your views on the operation of the current criteria, and also whether the reduction should work in a different way, for example, as a percentage discount on the Council Tax bill.

The current position

There are 2 categories of carers that can be disregarded (not counted) for the purposes of paying Council Tax. 

Charity or local council carers

This applies to a carer engaged by a charity or local council.

They must work at least 24 hours a week, not receive more than £44 per week, and live in premises provided by, or on behalf of, the organisation.

This category is less understood, and the origin of the terms ‘engaged by’ and the level of payment, which is considered low in today’s terms, is unknown.

Primary carers

This applies to a carer providing care for at least 35 hours per week.

The person being cared for must be entitled to 1 of the following:

• Increased rate of disablement pension
• The middle or higher rate of the care component of Disability Living Allowance
• The standard or enhanced rate of the daily living component of Personal Independence Payment
• An Attendance Allowance at any rate
• Armed Forces Independence Payment
• An increased rate of Constant Attendance Allowance

The carer does not need to claim Carer’s Allowance to qualify for this discount, and their income and savings do not affect eligibility.

If there is more than 1 carer in the property, they can both be disregarded for Council Tax purposes if they meet the conditions.

The case for change

The Welsh Government has no plans to change the conditions for category 2 Primary Carers.

For the first category, Charity or Local Council Carers, the level of remuneration that carers engaged by a charity, or a local council cannot exceed has not been increased since 2007, when the level was uprated from £36 to £44 per week in line with inflation.

Our review found no evidence of carers engaged by a charity, or a local council meeting these specific criteria who are currently being disregarded for the purposes of Council Tax. However, we want to ensure we have checked our understanding of this as part of this consultation.

Proposal

The Welsh Government proposes removing the first category of carers on the basis that the scenario where someone would be engaged as a carer working for at least 24 hours a week and not being paid more than £44 no longer exists. 

We want to ask about your views on the proposal to remove the disregard for charity or local council carers meeting these specific criteria. We would be especially interested to hear from any charities that engage carers under these conditions and are currently disregarded for the purposes of Council Tax.

Apprentices 

The current position

Apprentices earning less than £195 per week while undertaking a training programme leading to a qualification can be disregarded (not counted) for Council Tax purposes. The qualifying criteria is established by the Council Tax (Discount Disregards) Order 1992. 

Currently, an estimated 64 apprentices in Wales benefit from this disregard, this is a small number compared to the total number of people on apprenticeships in Wales.

The case for change

The earnings threshold for apprentices to qualify for a Council Tax disregard has not been updated since 2007, when it was increased from £160 per week to £195 per week, in line with inflationary increases. 

From April 2025, the national minimum wage for apprentices is £7.55 per hour. Consequently, apprentices working more than 25 hours per week will exceed the current threshold and lose eligibility for the Council Tax disregard.

Proposal

To continue supporting apprentices, the Welsh Government proposes adjusting the earnings threshold for a Council Tax disregard. 

It is proposed that apprentices aged 16 to 18, and those aged 19 or over in their first year, earning the national minimum wage for apprentices, will be disregarded for Council Tax purposes. This adjustment will ensure that any future increases in the apprentice rate are automatically applied without the need for further legislative changes.

Exemption A: uninhabitable property undergoing structural alterations

The current position

A property that needs, is having major or structural repair work or is undergoing structural alteration can be exempt from Council Tax for a period of up to 1 year. The property must also remain empty and be substantially unfurnished during this time. In 2025 to 2026 there are an estimated 3,598 properties in Wales in receipt of this exemption. 

The exemption applies to the property and can only be applied once, which means a new owner of a property that is still in need of major works will not be eligible if the previous owner had already benefited from the 12-month exemption.

The case for change

The exemption applying only once to the property regardless of changes in ownership has been highlighted as a potential barrier to bringing long term empty properties back into use. There have been instances where individuals purchase uninhabitable properties with the intention of renovating them for permanent occupation. However, they often face the challenge of paying full Council Tax, and in many cases, a premium, once the exemption period expires and the property is classified as a long-term empty property.

Proposal

The Welsh Government proposes amending Exemption A so that it applies for a new 12 month period where a property has been purchased by a new owner. We propose that the property sale must be evidenced by registration with UK Land Registry. We want to encourage new owners of properties to invest in renovating and bringing the property back into use. This consultation asks about your views on the proposal to change Exemption A.

Exemption C: empty and unfurnished property for up to 6 months after the property became vacant

Like Exemption A, the Exemption C category applies to the property which means a new owner of a property will not be eligible if the previous owner had already benefited from the six-month exemption.In 2025 to 2026 there are an estimated 14,640 properties in Wales in receipt of this exemption. 

Proposal

For consistency with the proposal for Exemption A, we propose applying the same criteria for Exemption C so that it applies for a new 6 month period where a property has been purchased by a new owner, to provide new owners time to occupy. We propose that the property sale must be evidenced by registration with UK Land Registry.

We want to ask about your views on the proposals to change Exemption C.

Exemption E: empty property where a person is in hospital or care home

The current position

An empty property is exempt from Council Tax when the person who would otherwise occupy it has their permanent home in a hospital or a residential care home. The empty property can be furnished or unfurnished. In 2025-26 there are an estimated 3,294 properties in Wales in receipt of this exemption.

The case for change

The Welsh Government does not plan to change the exemption for individuals who leave their property empty to move into a residential care home as their permanent home. However, we are interested in the evidence around hospital stays, as when a patient is in the hospital, the goal is to ensure they stay only for the necessary recovery period and no longer. 

Patients being treated in hospitals continue to be liable for other household bills and expenses during this time such as rent or mortgage payments, and utilities. We would like to seek views on whether Council Tax should continue to be liable.

Proposal

To support the ambition to ensure patients do not stay in hospital longer than necessary we propose that a hospital should not be considered a person’s permanent home for the purposes of Council Tax.

The Welsh Government proposes amending Exemption E to remove hospital stays as a person’s permanent home.

Exemption H: empty property held available for future use by ministers of religion

The current position

A Class H exemption from Council Tax is currently provided for properties that are empty but being held for a minister of any religious denomination as a future residence from which to perform their religious duties. There is currently no minimum period for the exemption to last. This can result in some properties remaining empty and exempt from Council Tax for very long periods.

The case for change

In reviewing this exemption, we found that in 2025 to 2026 there are an estimated 148 properties left empty and exempt from Council Tax indefinitely. 

While this is a relatively small number, properties left empty for long periods are not being used as a much-needed home for a family, or there is no incentive for the property to be converted for other uses such as commercial or community endeavours. Some can fall into disrepair, present risks to community and personal safety, and can attract anti-social behaviour such as vandalism, arson or squatting, which can also reduce the value of neighbours' homes. Given the housing crisis Wales is experiencing, and particularly the need for affordable housing, we believe we should use all the available policy levers to encourage owners to bring empty properties back into use, either for sale or for the rental market. Such properties could be offered up as a home for members of the community or repurposed for commercial use or community endeavours. The alternative is that the owners pay council tax on the empty property and potentially a premium, making a contribution towards the cost of local services in the area.   

Proposal

The Welsh Government proposes to introduce a new time-limit on the Council Tax exemption for an unoccupied property being held for future use by ministers of religion.

It is proposed that once a maximum time limit is exceeded, the property would become liable for Council Tax. The aim of introducing a time-limit is to help prevent properties being left empty and exempt from Council Tax indefinitely. We would propose to make this change from 1 April 2026.

We want to ask about your views on the proposal to change Exemption H.

Refuge accommodation for survivors of domestic abuse

Refuges provide an emergency safe haven for individuals escaping abusive environments. Domestic abuse can be physical, emotional, psychological, or financial, and survivors often face immediate danger. Refuges offer a secure place where survivors can find safety and protection from their abusers. Refuges offer a range of essential services to help survivors rebuild their lives, recover from trauma, and gain independence.

The current position

Accommodation for survivors of domestic abuse seeking refuge is usually liable for Council Tax, should be classified as domestic property for local taxation and valuation purposes and fall under the Council Tax system. Since 2014, the Welsh Government has introduced legislation ensuring that providers of communal refuge accommodation are responsible for paying Council Tax, not the occupants.

Over the years refuge services have diversified into a wider variety of property types. In addition to traditional communal accommodation, some service providers now offer self-contained flats or properties known as 'dispersed accommodation.' This option is used when shared facilities are not suitable, such as for women with adult male children, families with complex needs or specific location requirements, and male survivors of abuse. In such cases, the occupants can become liable to pay the Council Tax because the legal framework hasn’t kept pace with changes in service provision. 

There are currently 127 refuges across Wales of various property types.

The case for change 

Temporary refuge accommodation provides a vital service to some of the most vulnerable people in our communities, at a particularly difficult time in their lives. The majority of refuges rely on public sector funding to be able to run and continue providing those services in challenging environments. The Welsh Government has always strived to do all it can to support refuge services in Wales.  Meeting the cost of running refuges, including utilities, maintenance and staff salaries for services where many providers are not-for-profit, can be a challenging environment.  Many survivors of domestic abuse have low incomes of their own or experience economic abuse, leaving them financially unstable and unable to contribute to the cost of their accommodation. This financial instability can further strain the resources of refuges.

The introduction of dispersed accommodation in the sector has created an inconsistency in the treatment of survivors of domestic abuse seeking refuge under the Council Tax system. Many survivors of domestic violence face significant financial challenges. The potential cost of Council Tax on temporary accommodation may present an obstacle for survivors of domestic violence who wish to leave their current situation.

Proposal

To ensure fair and consistent treatment of survivors of domestic abuse, we think it is important to do all we can to support refuge services in Wales. Exempting both dispersed and communal refuges from Council Tax would help the future sustainability of these vital services and alleviate the financial burden on survivors. This change would help create a more equitable system, enabling survivors to seek refuge without the added stress of financial instability. Additionally, this proposal would enable refuge services to allocate more resources towards supporting survivors and expanding their services, fostering a safer and more supportive environment for those in need.

To ensure the Council Tax system remains stable and effective, it is proposed that only properties operating as a refuge to provide emergency temporary accommodation that have been commissioned by a local council in Wales will be eligible for an exemption from Council Tax. This could include self-contained, dispersed or communal accommodation, but it ensures the Council Tax exemption can be easy defined in law and applied by local councils. We propose the new Council Tax exemption would begin from 1 April 2026.

Question 1

Please specify if you are responding as a member of the public or on behalf of an organisation. 

Please choose one option.

• Member of the public
• Local council
• Advice sector agency
• Charity
• Professional or representative body
• Academic expert organisation
• Other

Question 2

To help us understand your views, please tell us if your household currently receives a Council Tax discount, exemption or reduction of any kind?

Please choose one option.

• No, I don’t receive any discounts, exemptions or reductions
• Yes, I receive a discount, exemption or reduction
• I don’t know / not applicable
• Prefer not to say

Question 3

A reduction applies to a property’s Council Tax band in recognition that some people with disabilities need to live in adapted homes.  Do you have any views on how the Disabled Band Reduction for adapted properties can be improved? 

Question 4

There are 2 categories of carers that can be disregarded (not counted) for the purposes of paying Council Tax. Do you agree with the proposal to update the carers disregard and remove outdated provisions?

Question 5

We believe an existing carer category no longer applies to anyone in Wales and we have found no records of it in use. Do you know of any people, or are you a person who: is a carer engaged by a charity or local council working at least 24 hours a week, and not receiving more than £44 per week, and who lives in a premises provided by, or on behalf of, the organisation?

Question 6

Are you a charity or local council that employs carers working at least 24 hours a week, but not receiving more than £44 per week, and provide premises where the carer is required to live in?

Question 7

Apprentices are disregarded (not counted) when calculating Council Tax for a household, but the qualifying criteria are out of date. Do you agree with the proposal to adjust the earnings threshold for apprentices in line with the minimum national wage for apprentices?

Question 8

Exemption A, a property that needs or is having major/structural repair work, or is undergoing structural alteration, can be exempt from Council Tax for a period of up to 1 year, but this exemption can only be applied once. Do you agree that Exemption A should be amended to provide a 12 month exemption when a new owner has purchased a property?

Question 9

Exemption C, a property that is empty and unfurnished can be exempt from Council Tax for up to 6 months after the property became vacant, but this exemption can only be applied once. Do you agree that Exemption C should be amended to provide a new 6 month exemption when a new owner has purchased a property?  

Question 10

Do you consider registration with HM Land Registry to be sufficient evidence of a property sale for Exemption A and Exemption C? Is there any other evidence that should be provided? 

Question 11

An empty property is exempt from Council Tax when the person who would otherwise occupy it has their permanent home in a hospital or a residential care home. Do you agree that a hospital should not be considered someone’s long-term or permanent home?

Question 12

Are there any circumstances when a hospital could be considered someone’s long‑term or permanent home? 

Question 13

Exemption H is an exemption from Council Tax for empty properties being held for future use by ministers of religion from which they will perform religious duties. Do you agree there should be a new time-limit on Exemption H to discourage properties from being left empty and exempt from Council Tax for an indefinite period?

Question 14

What do you consider is a reasonable period for a property being held for future use by ministers of religion to be empty before it becomes liable for Council Tax?

Please chose one option

• 1 year
• 2 years
• 3 years
• Other

Question 15

Are there circumstances when an empty property being held for future use by ministers of religion could not be a suitable home?

Question 16

Refuges are emergency temporary accommodation for survivors of domestic abuse. Do you agree with the proposal to exempt refuges in Wales from paying Council Tax? 

Question 17

What, in your opinion, would be the likely effects of the proposals on the Welsh language? We are particularly interested in any likely effects on opportunities to use the Welsh language and on not treating the Welsh language less favourably than English. 

Do you think that there are opportunities to promote any positive effects? 
Do you think that there are opportunities to mitigate any adverse effects?

Question 18

In your opinion how could the proposals be formulated or changed so as to:

• have positive effects or more positive effects on using the Welsh language and on not treating the Welsh language less favourably than English; or
• mitigate any negative effects on using the Welsh language and on treating the Welsh language no less favourably than English.

The consultation is open for a twelve‑week period until 15 August 2025. Consultation responses help the Welsh Government to clarify policy proposals and inform amendments to the legal framework.

Submit your comments by 15 August 2025, in any of the following ways:

• complete our online form.
• download, complete our response form and email: CTandNDR.Consultations@gov.wales
• download, complete our response form and post to:
  Council Tax Policy
  Welsh Government
  Cathays Park
  Cardiff
  CF10 3NQ

Your rights

Under the data protection legislation, you have the right:

• to be informed of the personal data held about you and to access it.
• to require us to rectify inaccuracies in that data
• to (in certain circumstances) object to or restrict processing
• for (in certain circumstances) your data to be ‘erased’
• to (in certain circumstances) data portability
• to lodge a complaint with the Information Commissioner’s Office (ICO) who is our independent regulator for data protection.

Responses to consultations are likely to be made public, on the internet or in a report. If you would prefer your response to remain anonymous, please tell us.

For further details about the information the Welsh Government holds and its use, or if you want to exercise your rights under the UK GDPR, please contact:

Data Protection Officer

Data Protection Officer
Welsh Government
Cathays Park
Cardiff
CF10 3NQ

Email: Data.ProtectionOfficer@gov.wales 

Information Commissioner’s Office

Information Commissioner’s Office
Wycliffe House
Water Lane
Wilmslow
Cheshire
SK9 5AF

Telephone: 01625 545 745 or 0303 123 1113

Website: ico.org.uk

UK General Data Protection Regulation (GDPR)

The Welsh Government will be data controller for any personal data you provide as part of your response to the consultation. The Welsh Ministers have statutory powers they will rely on to process this personal data which will enable them to make informed decisions about how they exercise their public functions. Any response you send us will be seen in full by Welsh Government staff dealing with the issues which this consultation is about or planning future consultations. Where the Welsh Government undertakes further analysis of consultation responses, this work may be commissioned to be carried out by an accredited third party (e.g. a research organisation or a consultancy company). Any such work will only be undertaken under contract. The Welsh Government’s standard terms and conditions for such contracts set out strict requirements for the processing and safekeeping of personal data.

To show that the consultation was carried out properly, the Welsh Government intends to publish a summary of the responses to this document. We may also publish responses in full. Normally, the name and address (or part of the address) of the person or organisation who sent the response are published with the response. If you do not want your name or address published, please tell us this in writing when you send your response. We will then redact them before publishing.

You should also be aware of our responsibilities under Freedom of Information legislation. If your details are published as part of the consultation response, these published reports will be retained indefinitely. Any of your data held otherwise by the Welsh Government will be kept for no more than three years.

WG Number: WG52240

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Statutory discounts 

• One liable adult (referred to as ‘single person’) discount. Outcome: keep, statutory discount retained in Local Government Finance (Wales) Act 2024. This will be restated at 25% in regulations.
• No liable adult (referred to as ‘empty property’) discount. Outcome: remove, statutory discount for empty property removed in the Local Government Finance (Wales) Act 2024. Exceptions will be restated at 50% in regulations. The no liable adult discount will be restated at 50% in regulations.
• Disabled band reduction. Outcome: no change proposed.This consultation seeks views on improvements.

Disregarded persons 

• Students. Outcome: no change proposed
• Youth Trainees. Outcome: remove
• Apprentices. Outcome: amendment proposed
• School and college leavers aged under 20. Outcome: no change proposed
• Spouses, civil partners and dependents of students of non-British Citizens who are not allowed to work or claim benefits. Outcome: no change proposed
• Care leavers aged 24 or under. Outcome: no change proposed
• Severely mentally impaired people. Outcome: amend, proposals consulted on in 2023
• Carers. Outcome: amendment proposed
• Patients in care homes or hostels providing care. Outcome: no change proposed
• Children: aged 17 or under, or someone still entitled to Child Benefit. Outcome: no change proposed
• Long-term hospital patients. Outcome: amendment proposed
• Hostel and night shelter residents. Outcome: no change proposed
• Prisoners, people in detention under mental health legislation and people in detention awaiting deportation. Outcome: no change proposed
• People in International Headquarters and Defence Organisations. Outcome: no change proposed
• Members of religious communities dependent on the community to provide for their material needs. Outcome: no change proposed
• Members of visiting armed forces and their dependents. Outcome: no change proposed
• Diplomats. Outcome: no change proposed

Exemptions

• A: uninhabitable property and empty property undergoing structural alteration or repairs. Outcome: amendment proposed
• B: unoccupied property owned by a charity. Outcome: no change proposed
• C: empty and unfurnished property for up to 6 months after the property became vacant. Outcome: amendment proposed
• D: unoccupied property because the person who would otherwise occupy it is in detention under certain enactments. Outcome: no change proposed
• E: unoccupied property because the person who would otherwise occupy it is in hospital or a care home. Outcome: amendment proposed
• F: unoccupied property where probate or letters of administration have not yet been granted, and for up to 6 months after the grant is made. Outcome: amend, proposals consulted on in 2023
• G: unoccupied property where occupation is prohibited by law. Outcome: no change proposed
• H: unoccupied property held available for use of ministers of religion from which to carry out their duties. Outcome: amendment proposed
• I: unoccupied because the person subject to the tax has their sole or main residence elsewhere in order to receive care. Outcome: no change proposed
• J: unoccupied because the person subject to the tax has their sole or main residence elsewhere in order to provide care. Outcome: no change proposed
• K: unoccupied where the person subject to the tax is a student and has been since he/she last occupied the property. Outcome: no change proposed
• L: unoccupied property that has been repossessed. Outcome: no change proposed
• M: a hall of residence provided predominantly for student accommodation. Outcome: no change proposed
• N: a property occupied only by students, foreign spouses of students or school and college leavers. Outcome: no change proposed
• O: armed forces accommodation. Outcome : no change proposed
• P: visiting forces accommodation. Outcome: no change proposed
• Q: unoccupied property left empty by a bankrupt person. Outcome: no change proposed
• R: unused caravan pitch or boat mooring. Outcome: no change proposed
• S: a property occupied only by people aged under 18. Outcome: no change proposed
• T: unoccupied property that forms a part of a single property which includes another property and may not be let separately from the other property without a breach of planning control. Outcome: no change proposed
• U: a property occupied only by severely mentally impaired people. Outcome: amend, proposals consulted on in 2023
• V: A property in which at least one person who would otherwise be liable is a diplomat. Outcome: no change proposed
• W: a property which forms part of a single property, including at least one other property, and which is the sole or main residence of a dependent relative of a person who is resident in the other property (e.g., an annexe). Outcome: no change proposed
• X: a property occupied only by a care leaver or care leavers under the age of 25. Outcome: no change proposed

Premiums

• Long-term empty property. Outcome: no change proposed
• Periodically occupied property (second homes). Outcome: no change proposed

Exceptions to premiums 

• Properties being marketed for sale (time-limited 1 year). Outcome: no change proposed
• Properties being marketed for let (time-limited 1 year). Outcome: no change proposed
• Annexes treated as part of the main property. Outcome: no change proposed
• Occupant in armed forces accommodation elsewhere. Outcome: no change proposed
• Occupied caravan pitches and boat moorings. Outcome: no change proposed
• Seasonal homes where year-round occupation is prohibited, holiday lets or properties that are prevented from being a person’s sole or main residence. Outcome: no change proposed
• Job-related dwellings. Outcome: no change proposed