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Section 13A – a little-known way to get Council Tax written off

A gate with the number13A - a Section 13A application is a way to get council tax written off.

Councils in England and Wales can reduce or write off your council tax under Section 13A (1)(c) of the Local Government Finance Act 1992. This has been called “the best-kept secret in council tax law“.

These Section 13A write-offs can be used if your house is uninhabitable because of flooding or fire. But you can also get a write-off if you have no money to pay your council tax after paying for essential living costs.

This article looks at how to apply for a Section 13A reduction because of financial problems, and how to appeal if the council rejects it.

Contents

  • Do you have a better option?
  • Most people need help with an application
  • Do this before applying for a council tax write-off
    • 1) Get details of your council tax arrears
    • 2) Other reductions or benefits you may be entitled to
    • 3) Find your council’s section 13A policy
    • 4) Get an Income & Expenditure statement
  • Making the Section 13A application
    • Using the council’s form
    • No form? Send an email
    • Possible reasons why the council should write off tax
  • Appeal to the Valuation Tribunal
    • Reasons to appeal
    • The appeal process
  • Will this work?
  • Resources for debt advisers

Do you have a better option?

There may be easier, quicker, more certain ways to get help with your finances. So look seriously at all your other options.

Council tax is a priority debt. That means you have to pay it even if you then can’t pay a loan or a credit card. A section 13A application will be rejected if you are still paying other non-priority debts.

First read What to do if you have problems paying Council Tax.

Could you pay all your priority debts and essential living costs if interest is frozen on your loans, credit cards etc? In that case, look at a debt management plan or a token payment plan.

If your problem is bigger and you don’t have enough income to pay your priority debts, talk to a good debt adviser about the different types of insolvency. A Debt Relief Order for example will write off all your council tax arrears and most of your other debts as well.

A section 13A application is something to fall back on when other debt solutions won’t work for you.

Most people need help with an application

Section 13A applications aren’t easy. Most people would benefit from help with making an application:

  • you will need an Income and Expenditure statement (I&E) – debt advisers are experts at drawing this up. It will often need to be a household I&E covering your partner’s income and expenses as well.
  • there may be able other benefits you could claim or a better debt solution that covers more of your debts;
  • a letter from a debt adviser in support of your application will prove that you have looked at your other options;
  • a debt adviser can set up a “breathing space” if this would help you.

So unless you are very confident and council tax is your only problem debt, I strongly suggest you talk to a debt adviser.

It’s best if the adviser is local to you.

Although the law is the same across England and Wales, different councils have different procedures. A local agency may have experience with section 13A applications to your council.

You can get free local advice from your local Citizens Advice, a Law Centre or a service run by your council. In the rest of this article, I just say “Citizens Advice” for short!

Do this before applying for a council tax write-off

1) Get details of your council tax arrears

Councils account for money in tax years, which run from April to March the next year. If you are getting letters from the council or a bailiff saying you owe £450, that may be your council tax debt for the last tax year and you may also have arrears in other years.

Unless you are 100% definite you only owe money for the one tax year, phone your council tax department and ask them for details of all the council tax years you owe money for.

2) Other reductions or benefits you may be entitled to

You can get a section 13A write-off in addition to claiming other reductions such as:

  • the 25% single-person discount;
  • your council’s normal Council Tax Reduction provisions for people on a low income;
  • a Discretionary Housing Payment (DHP) to help with your rent costs not covered by Universal Credit or Housing Benefit.

Most councils expect you to have applied for all the other help you may be entitled to before making a Section 13A application. Your local Citizens Advice can advise what else you may be able to claim.

If your visa/residence is on a no recourse to public funds condition, then you cannot claim a Section 13A reduction.

3) Find your council’s section 13A policy

If you apply for a reduction, the council has to consider your individual case. But councils should have a policy that covers how they make a decision Knowing what this is may help you write a better application.

Some councils explain their Section 13 A policy on their website.  To find this is to use the search box on your council’s website and look for Section 13A or Discretionary Council Tax Reduction.

If you can’t find anything on their website, this doesn’t mean they don’t give section 13A reductions – they just don’t want people to know about them! So phone or email the council tax department and ask how to make an application for a Section 13A Discretionary Council Tax Reduction.

Read the policy carefully and think about how it applies to you.

If the council policy seems to dismiss your situation, talk to your local Citizens Advice. For example, some councils say you can only apply for a reduction/write-off for the current council tax year – that is wrong!

4) Get an Income & Expenditure statement

A good I&E is vital for making a successful application for a write-off. The aim is to show you don’t have enough money to make an arrangement to repay the council tax owing, which is why it should be written off.

You can use National Debtline’s Your Budget tool to draw one up. You can send a copy of this to your council with the section 13A application.

Your I&E should either be balanced with income and essential expenditure about equal, or it may be in deficit with your essential expenditure being larger than your income.  It should not show a surplus, as the council would expect you to use that to pay the council tax.

It has to be accurate. You can’t increase some of the numbers so that your position looks worse! You will be supplying your bank statements with your application so this will be obvious.

Expenditure to inessentials should be stopped. This includes not making any payments to non priority debts such as unsecured loans, credit cards, catalogues and your overdraft. If you are currently paying some of these, you need debt advice on stopping so that you have more money to pay to priority debts such as council tax.

If you are making changes, eg you are stopping paying a debt and a couple of subscriptions, then you can include a note with the I&E to say what you have done.

Your local Citizens Advice can help you sort out priority and non-priority debts. They can talk about your debt options and what expenditure may be accepted as “essential” by your council.

Making the Section 13A application

Using the council’s form

When the council provides a form, use it. When the council asks for specific evidence you must supply this. Some councils ask for your bank statements, payslips, benefit letters and/or an I&E sheet produced by a local advice agency.

If this seems intrusive, remember this is a discretionary reduction, so the council is entitled to ask for details about your finances. Your application is likely to be rejected if you don’t send this, and you won’t win an appeal.

When the council just says “send supporting evidence” without a list, you should attach an I&E sheet and your two most recent bank statements. If you have a partner, you need to attach their bank statements as well. If you have several bank accounts, send them all – you don’t want the council thinking you have another account with a lot of money in it!

Also include any other documents you think help explain your situation.

No form? Send an email

Don’t do this if your council provides a form for Section 13A applications. It just wastes time as the council will probably reply that you have to complete their form.

But if there is no form, you can email your application to the council tax department. NB send this to the council tax department itself, not the benefits department.

Subject:  Application for council tax discretionary reduction – section 13A(1)(c) Local Government Finance Act 1992

My name is [xxxxxx]. I am the [owner/occupier] of [address & postcode].

I am the person liable for council tax. My council tax account number is [999999999].

I write to apply for a discretionary reduction in the amount of council tax under section 13(A)(1)(c) of the Local Government Finance Act 1992 that I owe for the following tax years: [2020/21 and 2021/22].

I am currently in receipt of council tax reduction but I cannot pay the reduced amount OR I have applied for council tax reduction but I will not be able to pay the reduced bill if that is awarded OR I have been told I do not qualify for council tax reduction because [xxxxxxxxxxxxxxxxxxx].

My reasons for applying for a discretionary reduction are as follows [see Reasons below]

I attach an Income & Expenditure statement, showing that I have no surplus income to make payments to these council tax debts, and my latest two bank statements.

[also attach & list anything else that supports your request:  receipts, medical reports, statements of expenditure, letters from other people in support]

I look forward to hearing from you within two months of the date of this letter.

If you do not accept my application, I will be appealing to the Valuation Tribunal under section 16(1) of the Local Government Finance Act 1992.

Yours faithfully, [name]

Possible reasons why the council should write off tax

The basic reason why the council should write off your council tax is that your budget shows you do not have any money at all to pay the council tax after paying for your essentials.

But your application can also explain the cause of your problems and their effect on you and your family. Here are some examples – there may be other points that matter for you.

  • A specific life event (redundancy, sickness, caring responsibilities, divorce, economic abuse, business failure, etc) may have caused your difficulties.
  • If you could not get financial help because of Covid-19, explain why.
  • If you can afford to pay this year’s council tax, but not the arrears on previous years, point out that your budget has no surplus income and if you have to make payments towards previous years arrears, you won’t be able to pay this year’s tax.
  • You may have to have a car because of getting the children to school or to be able to find a new job if there is no suitable public transport.
  • Where you have made reductions in your expenses, you could explain this. And add if you have discussed your budget with xxxxxxxxxxxx advice agency. A letter from the advice agency in support of your application could be helpful. That letter could mention if you have been getting help from a foodbank.
  • If your health (or your partner’s or your children’s) is an important factor, a letter from your GP may be useful saying why this prevents you from working and if it is unlikely to improve in the next year.
  • Say if making an arrangement to pay the council tax arrears would mean you are unable to pay your rent. When your benefits are reduced because of the benefit cap, or you are not able to claim benefits for a third child, or you have a bedroom tax penalty but there is no other accommodation you could move to, explain the strain this puts on your budget.
  • If you have a mortgage and you are not yet getting any help through Universal Credit, or if the help is only being paid at a much lower interest rate, explain this.
  • If you cannot move somewhere cheaper because of caring responsibilities, or you are in a house that is adapted for your needs, or your house is unsaleable eg because of cladding problems, explain this.

You don’t need to write a lot. The numbers are in your I&E, you are just giving an explanation.

The key points to make are about why your income is low, why your expenses are high, how you have tried to reduce them and whether your problems are likely to carry on.

Appeal to the Valuation Tribunal

The Valuation Tribunal considers all appeals about council tax matters. It is independent of your council and it is free to appeal to them.

You should make an appeal within two months of getting a rejection from your council (or when two months has passed without the council replying.)

If you don’t get a reply from your council in two months you could complain to the council. But this may delay taking your case to the independent Valuation Tribunal, so it may be better to send the appeal to the Valuation Tribunal straight away.

Reasons to appeal

Did you supply all the information the council asked for? If your application was rejected because you didn’t, you need to tackle that, not make an appeal.

You should appeal if:

  • no reason was given for rejecting your application;
  • the council seems to have applied a blanket policy such as “we only give reductions for the current year, not previous years” or “we do not give reductions to people who are in work” – they should have considered your specific case and whether you can pay the arrears;
  • the council says it has used up all the allocated money for this sort of reduction – they are not allowed to limit their discretionary reductions in this way;
  • the rejection is unreasonable, the council seems to have made a mistake or has ignored a key fact in your case.

If you are not sure, talk to a local debt adviser:

  • they will be able to help you explain what to say on the appeal form;
  • they may also be able to get your council to suspend enforcement such as bailiffs while an appeal goes through.

The appeal process

The appeal process is described on the Valuation Tribunal for England website. (There is a separate website and procedures for Wales, see a local advice agency for help with this.)

You want the page for Appealing about liability – this is not the page for appeals about Council Tax Reduction.

In your appeal you need to explain what you think was wrong with your council’s decision and what you want the Tribunal to do – in your case, order the council to reduce or write off your council tax arrears.

If you think the council made a wrong decision, this is your chance to explain more clearly why you have no surplus income after paying for essential to make arrangements to pay the council tax. As with your application to the council, you can attach supporting evidence.

A local debt adviser will be able to help you with this.

This booklet covers the appeal process.

You are more likely to win an appeal if you attend the hearing. The hearing is less formal than a court of law. You do not need a solicitor to represent you.

Some hearings are being held remotely. You will need a phone or computer with a camera and a microphone. See the Valuation Tribunal’s Remote Hearings page which has full details. A friend or adviser can attend with you.

Will this work?

Section 13A write-offs aren’t common because hardly anyone has heard of them! But in 2021 these discretionary write-offs may be more used because so many people have major financial problems because of the pandemic.

I don’t know how likely your application is to be accepted by your council directly.

Maximise your chance by getting debt advice to put together a good budget and make sure you aren’t making payments to non-priority debts.

Your council may reject your section 13A application but find some other pot of money they can help you with. This would still be a good result for you!

The Valuation Tribunal says about 1 in 3 or 4 appeals are upheld. This is across all types of complaints, there aren’t any statistics for discretionary council tax reductions specifically.

Maximise your chance by talking to a debt adviser about your case and by attending the hearing.

Worrying about whether this will work is not a reason to delay trying if this is the best way forward for you!

You can ask a question or leave a comment below this article.


Resources for debt advisers

  • the legislation: Section 13A (1)(c) of the Local Government Finance Act 1992
  • a key Valuation Tribunal decision in 2014 on two cases: S. C. and C.W. v. East Riding of Yorkshire Council:  “An authority cannot as a matter of law fetter its discretion and must therefore consider every application on its merits whatever the policy or scheme says.” 
  • public funds for NRPF is defined in the Immigration Rules.
  • Specialist Debt Advice can give help with appeals.

September 2, 2021 Author: Sara Williams Tagged With: council tax, For debt advisers, Priority debts

Comments

  1. Claire S says

    September 4, 2021 at 10:01 am

    Hi Sara, we are starting to make more of these applications in my local Citizens Advice and this article is so helpful – thank you!

    Reply
  2. Lisa says

    December 3, 2021 at 12:42 am

    Hello,

    My partner who is in his early 50s, has approx £4,500 of council tax arrears dating from around 2009.
    He has always received single person discount of 25% as he lives alone.
    He has been unemployed and on Jobseekers Allowance/Universal Credit and in receipt of Council Tax Benefit for the majority of this time and has been for the last 7 years.
    The council get liability orders and bailiffs send letters but they never attend his property. Then it goes back to the council and eventually back to bailiffs again and round and round it goes.
    He is unable to pay and applied for a discretionary write-off.
    The council wrote off this years liability of £281.92, but not any of the previous arrears.
    Is there anything that can be done in this situation?
    Any help most appreciated. Thank you, Lisa

    Reply
    • Sara (Debt Camel) says

      December 3, 2021 at 7:00 am

      Can I ask if he has any other debts? Overdraft, catalogues, arrears on water or energy bills etc?
      How long ago was the decision on his section 13A application this year?
      What reason did they give for not writing off previous arrears?

      Reply
  3. Lisa says

    December 3, 2021 at 12:16 pm

    Thank you for your prompt response.

    He does not have an overdraft as he has bad credit due to lots of debt in the past which also led to 3 CCJs.
    He has
    – £600 credit card debt which is defaulted and with a DCA which is showing on his credit files, but all other debts including the 3 CCJs have fallen off the credit files and he did not make any payment towards any of this as he was unable to
    – £320 of water arrears
    – prepayment gas and elec which is very expensive, but he uses very little
    – rent arrears of £1500 which the landlord (housing association) make deductions for every month from his benefits
    – a credit card with credit limit £200, balance £220 with breathing space, but not able to make minimum payments
    – a credit card with credit limit £600, balance £660 with breathing space, but not able to make minimum payments

    He told them everything and the fact that he is struggling with mental health issues which have got worse during the pandemic.

    The council made the decision a month ago.

    The council provided him a link to fill out a form on their website but it was titled “Council Tax Discretionary Reduction form”, not a section 13A application – is this still the correct form?

    They gave no reason for not writing off previous arrears.
    He only realised that they’d written off this year’s liability when they replied back to his email yesterday as he asked them for an update having not heard from them. Apparently, they are in the process of sending an adjustment notice informing that the balance is now zero for this year.

    Is there anything further that can be done?
    Thank you

    Reply
    • Sara (Debt Camel) says

      December 3, 2021 at 12:26 pm

      “Council Tax Discretionary Reduction form” may be the right form. Which council is it? If you can say I can have a look at their website.

      Did he get a reply in writing to his application? If he did, did this just ignore his request for previous years to be written off or did they reject this with no reason?

      He can appeal to the Valuation Tribunal – this has to be done within 2 months of getting the decision so it may now be urgent, or it may not, it isn’t clear if has actually be formally told what the decision is.

      Reply
  4. Lisa says

    December 3, 2021 at 4:05 pm

    The council is Bromley and they provided this link to apply
    https://www.bromley.gov.uk/info/59/council_tax_-_discount/119/council_tax_discounts_and_exemptions/8

    He did not get a reply in writing.
    However, the post arrived this morning, and they have sent the ‘adjustment notice’ they referred to in their email response yesterday.
    It is essentially a council tax bill which does not state the figure £281.92 (which they say was written off) anywhere, but it says balance owing is £0.00.

    There is nothing else accompanying this, no letter or notes, so it appears they have ignored his request for previous years to be written off or simply decided to only write off this year.

    Should he ask them to revaluate the decision?
    Or ask for a formal response with their decision and a written explanation so that he can appeal to the Valuation Tribunal?

    Thank you

    Reply
    • Sara (Debt Camel) says

      December 3, 2021 at 4:45 pm

      Yes that is the right form – the link at the bottom goes to a page which explains it is the section 13A policy.

      Is he assuming the previous years have not been written off or has he been told that on the phone?

      If he is just assuming it, he should go back and ask for clarification on the decisions about arrears in previous years.
      If he was told they are not being written off, I suggest he asks for an explanation about why they have not been written off as he will be taking the case to the Valyation Tribunal.

      Reply
  5. Lisa says

    December 4, 2021 at 2:41 pm

    Thank for looking into this and confirming.
    They communicated by email and the council said a Discretionary amount of £281.92 was written off which was for the current year.
    I will get him to write to them asking why they haven’t written off previous years and mention about taking the case to the Valuation Tribunal.

    Most grateful for your help and time.

    Reply
  6. Justin says

    December 5, 2021 at 1:28 pm

    Hi Sara
    This Section 13A, wondered if it could help me. I am struggling to pay my reduced council tax already (reduced due to 25% SPD and reductions from CTS based on benefits – Income-based/Income-related JSA). Really worried as with gas and electric prices going up how I can manage this. Do I need to wait until I have a debt with CT until I can? I own my home so the housing benefit element etc is not applicable to me. I do get a very limited SMI for mortgage interest.
    Thanks
    Justin

    Reply
    • Sara (Debt Camel) says

      December 5, 2021 at 2:02 pm

      Are you making payments to any other debts apart from your mortgage?

      Reply
      • Justin says

        December 7, 2021 at 9:25 pm

        Token payments of £1.00 being made to some unsecured credit cards and overdraft, plus min repayment to a Capital One card (bal £400 ish), currently in slight debt (two or three months) on TV Licence, Sewerage, Water (both are billed separately where I live) and more in debt on Gas and Electric (several months). Even without paying any CT at all, it is a real struggle, so surely my essential bills mean I could apply for 13A exemption?

        Reply
        • Sara (Debt Camel) says

          December 7, 2021 at 9:32 pm

          You may be refused a Section 13A application if you are making minimum payments to the Cap One card. And its also best to stop the token payments as well – your situation is then clear, you are not paying any non priority debts at all and still cannot afford to pay the council tax.

          Also you do need to stop paying Cap One – it isn’t a lot of money but that money needs to pay the TV license and your energy bills.
          I suggest you talk to your local Citiznes Advice about this, or national debtline on 0808 808 4000.

          Reply
  7. Linda says

    January 26, 2022 at 2:34 am

    Can I ask please. You say in your article that this can be claimed if your house is uninhabitable because of flooding. Can this be claimed historically? I have council tax arrears from when I lived in my previous housing association house 2/3 years ago. We had two major floods (outside dirty flood/rain water coming in the house) and twice my children had to move into hotels as we had no kitchen or downstairs living,the downstairs had to have all the plaster removed and there was bricks and rubble everywhere whilst they were doing other major building repairs. It spanned a couple of years on and off and we lost everything twice as my furniture was classed as contaminated and taken away. At times we had to live in our bedrooms as the downstairs was inhabitable was meant no kitchen or appliances as they had to replace the kitchen. Yet we stayed there, living in bedrooms on the second occasion. The councils environmental health were actually involved as it happened twice over about an 18 month period because of poor drainage outside the property when it rained heavy. They will have a record.In the end the housing association had to move us. We are now paying back council tax arrears from the time we lived there. It happened about 2/3 years ago. But we are paying arrears from that time at the moment. Should i enquire about this? I did at the time have to put in a complaint in so I have plenty of evidence and photos

    Reply
    • Sara (Debt Camel) says

      January 26, 2022 at 10:24 am

      I think this is probably worth a try as you still owe money from that time. I suggest you ask your local Citizens Advice to help.

      Reply
  8. RS says

    June 21, 2022 at 4:14 pm

    I am currently dealing with Bristow & Sutour regarding a council tax debt. I have one payment left to make which I was unable to make this month which I contacted them about. They refused my request to pay this in full at the end of June even though for 3 months I had paid significantly more than I had agreed to. The total amount remaining is £457 from an original £3800. I offered to pay this in full at the end of June. Last week they sent a bailiff around to my property and added a further £235 to the balance. I have formally made a complaint to them which they have once again dismissed. Is there anything else I can do to challenge the £235 or do I just have to accept it?. I would not qualify for the S13A application. Thankfully all of my other debts are now paid thanks to this website.

    Reply
    • Sara (Debt Camel) says

      June 21, 2022 at 4:43 pm

      I suggest you go to your local Citizens Advice and ask for their help. They may have local contacts that can help.

      Reply
      • Sara (Debt Camel) says

        June 22, 2022 at 9:15 am

        One option is to complain to the bailiffs and to the council that you made a very reasonable offer and the visit was unneccessary and so should not be charged for. If the council rejects this, you can appeal to the Local Government and Social Care Ombudsman (LGSCO).
        But I hope this can get resolved more quickly than that.

        Reply

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