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The Council Tax Reduction (Scotland) Regulations 2021

Type Scottish-Statutory-Instrument

Publication 2021-06-23

Last updated 2026-03-15

State In force

Jurisdiction Scotland

Department King's Printer for Scotland

Source legislation.gov.uk

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Calculation of student income – grants

61

Where, in accordance with regulation 59(4), an applicant’s student income is to be based on the amount of a grant, the amount to be taken into account is the whole of the grant excluding any payment—

(a) intended to meet tuition fees or examination fees,

(b) in respect of the applicant’s disability,

(c) intended to meet additional expenditure connected with term time residential study away from the applicant’s educational establishment,

(d) intended to meet the cost of the applicant maintaining a home at a place other than that at which they reside during their course, except where the applicant has an award of universal credit and that award includes an amount for the housing costs element in respect of those costs,

(e) intended for the maintenance of another person, except where the applicant has an award of universal credit and that award includes an amount in respect of that person,

(f) intended to meet the cost of books and equipment,

(g) intended to meet travel expenses incurred as a result of the applicant’s attendance on the course, or

(h) intended to meet childcare costs.

Calculation of student income for an assessment period

62

The amount of an applicant’s student income in relation to each assessment period in which the applicant is to be treated as having student income in accordance with regulation 59(1) is calculated as follows—

Step 1

Determine whichever of the following amounts is applicable—

(a) in so far as regulation 59(2) applies to an applicant with a student loan, the amount of the loan (and, if applicable, the amount of any grant) in relation to the year of the course in which the assessment period falls,

(b) in so far as regulation 59(2) applies to an applicant with a postgraduate master’s degree loan, 30 per cent of the amount of the loan in relation to the year of the course in which the assessment period falls, or

(c) if regulation 59(4) applies (applicant with a grant but no student loan or postgraduate master’s degree loan) the amount of the grant in relation to the year of the course in which the assessment period falls.

But if the period of the course is less than a year determine the amount of the grant or loan in relation to the course.

Step 2

Determine in relation to—

(a) the year of the course in which the assessment period falls, or

(b) if the period of the course is less than a year, the period of the course,

the number of assessment periods for which the applicant is to be treated as having student income.

Step 3

Divide the amount produced by step 1 by the number of assessment periods produced by step 2.

Step 4

Where an applicant—

(a) has an award of universal credit, deduct £110 for each assessment period,

(b) does not have an award of universal credit, deduct £27.50 for each week in the assessment period.

Assumed yield from capital

63

(1) An applicant’s capital is to be treated as yielding—

(a) a monthly income of £4.35 for each £250 in excess of £6,000 and £4.35 for any excess which is not a complete £250, or

(b) a weekly income of £1 for each £250 in excess of £6,000 and £1 for any excess which is not a complete £250.

(2) Paragraph (1) does not apply where the capital is disregarded or the actual income from that capital is taken into account under regulation 57(1)(j) (income from an annuity) or 57(1)(k) (income from a trust).

(3) Where an applicant’s capital is treated as yielding income, any actual income derived from that capital, for example rental, interest or dividends, is to be treated as part of the applicant’s capital from the day it is due to be paid to the applicant.

Unearned income calculated monthly

64

(1) Where an applicant has an award of universal credit, an applicant’s unearned income is to be calculated as a monthly amount.

(2) Where the period in respect of which a payment of income is made is not a month, an amount is to be calculated as the monthly equivalent, as follows—

(a) weekly payments are multiplied by 52 and divided by 12,

(b) four-weekly payments are multiplied by 13 and divided by 12,

(d) annual payments are divided by 12.

(3) Where the period in respect of which unearned income is paid begins or ends (but does not begin and end) during an assessment period the amount of unearned income for that assessment period is to be calculated as follows—

$N×( M×12/365 )$

where N is the number of days in respect of which unearned income is paid that fall within the assessment period and M is the monthly amount referred to in paragraph (1) or, as the case may be, the monthly equivalent referred to in paragraph (2).

(4) Where the amount of an applicant’s unearned income fluctuates, the monthly equivalent is to be calculated—

(a) where there is an identifiable cycle, over the duration of one such cycle, or

(b) where there is no identifiable cycle, over three months or such other period as may, in the particular case, enable the weekly equivalent of the applicant’s income to be determined more accurately.

(5) This regulation does not apply to student income.

Notional unearned income

65

(1) If unearned income would be available to an applicant upon the making of an application for it, the applicant is to be treated as having that unearned income.

(2) Paragraph (1) does not apply—

(a) to the benefits listed in regulation 57(1)(b), or

(b) where regulation 60B(1) of the Universal Credit (Transitional Provisions) Regulations 2014 (deferral of retirement pension income) applies.

(3) An applicant who has reached pensionable age is to be treated as possessing the amount of any retirement pension income for which no application has been made and to which the applicant might expect to be entitled if a claim were made.

(4) The circumstances in which an applicant is to be treated as possessing retirement pension income are the same as the circumstances set out in regulation 18 of the State Pension Credit Regulations 2002[^f00179] in which a person is treated as receiving retirement pension income for the purposes of state pension credit.

CHAPTER 5 — Capital

Capital limit

66

No person is entitled to council tax reduction if that person’s capital exceeds £16,000.

What is included in capital?

67

(1) The whole of an applicant’s capital is to be taken into account unless—

(a) it is to be treated as income (see paragraphs (3) and (4)), or

(b) it is to be disregarded (see regulation 69).

(2) An applicant’s personal possessions are not to be treated as capital.

(3) Subject to paragraph (4), any sums that are paid regularly and by reference to a period, for example payments under an annuity, are to be treated as income even if they would, apart from this provision, be regarded as capital or as having a capital element.

(4) Where capital is payable by instalments, each payment of an instalment is to be treated as income if the amount outstanding, combined with any other capital of the applicant exceeds £16,000, but otherwise such payments are to be treated as capital.

Jointly held capital

68

Where an applicant and one or more other persons have a beneficial interest in a capital asset, the applicant and those other persons are to be treated, in the absence of evidence to the contrary, as if they were each entitled to an equal share of the whole of that beneficial interest.

Capital disregarded

69

(1) Any capital specified in schedule 4 is to be disregarded from the calculation of an applicant’s capital (see also regulations 74 to 76).

(2) Where a period of 6 months is specified in that schedule, that period may be extended by a relevant authority where it is reasonable to do so in the circumstances of the case.

(3) For the purposes of paragraph (2), notwithstanding the circumstances of the case, it is reasonable for the relevant authority to extend a period of 6 months where—

(a) an applicant has an award of universal credit, and

(b) the Secretary of State has extended a period of 6 months specified in an equivalent provision in schedule 10 of the 2013 Regulations (in accordance with regulation 48 of those Regulations).

Valuation of capital

70

(1) Capital is to be calculated at its current market value or surrender value less—

(a) where there would be expenses attributable to sale, 10 per cent, and

(b) the amount of any encumbrances secured on it.

(2) The market value of a capital asset possessed by an applicant in a country outside the United Kingdom is—

(a) if there is no prohibition in that country against the transfer of an amount equal to the value of that asset to the United Kingdom, the market value in that country, or

(b) if there is such a prohibition, the amount it would raise if sold in the United Kingdom to a willing buyer.

(3) Where capital is held in currency other than sterling, it is to be calculated after the deduction of any banking charge or commission payable in converting that capital into sterling.

Notional capital

71

(1) An applicant is to be treated as possessing capital (and is assumed to have a yield from that capital as described in regulation 63) where the applicant has, in the opinion of a relevant authority, deprived themselves of that capital for the purpose of securing entitlement to council tax reduction or an increased amount of council tax reduction.

(2) Where an applicant—

(a) deprived themselves of capital for the purpose of securing entitlement to universal credit or to an increased amount of universal credit, and

(b) was treated as possessing that capital under regulation 50 of the 2013 Regulations for the purposes of calculating the applicant’s award of universal credit,

the applicant is to be treated as possessing that capital under paragraph (1) for the purposes of calculating an applicant’s capital under these Regulations.

(3) An applicant is not to be treated as depriving themselves of capital under paragraph (1) if the applicant disposes of it for the purposes of—

(a) reducing or paying a debt owed by the applicant, or

(b) purchasing goods or services if the expenditure was reasonable in the circumstances of the applicant’s case.

(4) For the purposes of this regulation, “deprived” includes a failure to make an application for capital that would have been acquired by the applicant had it been sought.

Diminishing notional capital (applicants with no award of universal credit)

72

(1) Where an applicant is treated as possessing capital under regulation 71(1) (notional capital), and neither the applicant nor the applicant’s partner, nor the partners jointly, have an award of universal credit, the amount which the applicant is treated as possessing—

(a) in the case of a week that is subsequent to—

(i) the relevant week in respect of which the conditions set out in paragraph (2) are satisfied, or

(ii) a week which follows that relevant week and which satisfies those conditions,

is to be reduced by the amount determined under paragraph (3),

(b) in the case of a week in respect of which paragraph (1)(a) does not apply but where—

(i) that week is a week subsequent to the relevant week, and

(ii) that relevant week is a week in which the condition in paragraph (4) is satisfied,

is to be reduced by the amount determined under paragraph (4).

(2) This paragraph applies to a reduction week or part-week where the applicant satisfies the conditions that—

(a) the applicant is in receipt of council tax reduction, and

(b) but for regulation 71(1), the applicant would have received an additional amount of council tax reduction in that week.

(3) In a case to which paragraph (2) applies, the amount of the reduction for the purposes of paragraph (1)(a) is equal to the aggregate of—

(a) the additional amount to which paragraph (2)(b) refers,

(b) where the applicant has also claimed housing benefit, the amount of any housing benefit or any additional amount of that benefit to which the applicant would have been entitled in respect of the whole or part of the reduction week to which paragraph (2) refers but for the application of regulation 49(1) of the Housing Benefit Regulations 2006 (notional capital)[^f00180],

(c) where the applicant has also claimed income support, the amount of income support to which the applicant would have been entitled in respect of the whole or part of the reduction week to which paragraph (2) refers but for the application of regulation 51(1) of the Income Support Regulations (notional capital)[^f00181],

(d) where the applicant has also claimed a jobseeker’s allowance, the amount of an income-based jobseeker’s allowance to which the applicant would have been entitled in respect of the whole or part of the reduction week to which paragraph (2) refers but for the application of regulation 113 of the Jobseeker’s Allowance Regulations (notional capital) [^f00182], and

(e) where the applicant has also claimed an employment and support allowance, the amount of an income-related employment and support allowance to which the applicant would have been entitled in respect of the whole of part of the reduction week to which paragraph (2) refers but for the application of regulation 115 of the Employment and Support Allowance Regulations (notional capital)[^f00183].

(4) Subject to paragraph (5), for the purposes of paragraph (1)(b) the condition is that the applicant would have been entitled to council tax reduction in the relevant week but for regulation71(1) (notional capital), and in such a case the amount of the reduction is to be equal to the aggregate of the following amounts—

(a) the amount of council tax reduction to which the applicant would have been entitled in the relevant week but for regulation 71(1), and for the purposes of this sub-paragraph if the amount is in respect of a part-week, that amount is to be determined by dividing the amount of council tax reduction to which the applicant would have been entitled by the number equal to the number of days in the part-week and multiplying the quotient by 7,

(b) if the applicant would, but for a provision listed in paragraph (3)(b) to (e) have been entitled to housing benefit, income support, jobseeker’s allowance or employment and support allowance or to an additional amount of housing benefit, income support, jobseeker’s allowance or employment and support allowance in respect of the reduction week which includes the last day of the relevant week, the amount which is equal to—

(i) in a case where no housing benefit, income support, jobseeker’s allowance or employment and support allowance is payable, the amount to which the applicant would have been entitled, or

(ii) in any other case, the amount equal to the additional amount of housing benefit, income support, jobseeker’s allowance or employment and support allowance to which the applicant would have been entitled, and, for the purposes of this sub-paragraph, if the amount is in respect of a part-week, that amount is to be determined by dividing the amount of housing benefit, income support, jobseeker’s allowance or employment and support allowance to which the applicant would have been entitled by the number equal to the number of days in the part-week and multiplying the quotient by 7.

(5) The amount determined under paragraph (4) is to be re-determined under that paragraph if the applicant makes a further application for council tax reduction and the conditions in paragraph (6) are satisfied, and in such a case—

(a) paragraph (4)(a) and (b) applies as if for “relevant week” there was substituted “relevant subsequent week”, and

(b) subject to paragraph (7), the amount as re-determined has effect from the first week following the relevant subsequent week in question.

(6) The conditions are that—

(a) a further application is made 26 or more weeks after the latest of—

(i) the date on which the applicant made an application for council tax reduction in respect of which the applicant was first treated as possessing the capital in question under regulation71(1) (notional capital),

(ii) in a case where there has been at least one re-determination in accordance with paragraph (5), the date on which the applicant last made an application for council tax reduction which resulted in the weekly amount being re-determined, or

(iii) the date on which the applicant last ceased to be entitled to council tax reduction, and

(b) the applicant would have been entitled to council tax reduction but for regulation 71(1).

(7) The amount as re-determined under paragraph (5) is not to have effect if it is less than the amount which applied in that case immediately before the re-determination, and in that case the higher amount continues to have effect.

(8) In this regulation—

(a) “part-week”—

(i) in paragraph (4)(a) means a period of less than a week during which a person is entitled to council tax reduction,

(ii) in paragraph (4)(b) means a period of less than a week for which housing benefit is payable,

(b) “relevant week” means the reduction week or part-week in which the capital in question of which the applicant has been deprived within the meaning of regulation 71(1)—

(i) was first taken into account for the purpose of determining the applicant’s entitlement to council tax reduction, or

(ii) was taken into account on a subsequent occasion for the purpose of determining or re-determining the applicant’s entitlement to council tax reduction on that subsequent occasion and that determination or re-determination resulted in the applicant beginning to receive, or ceasing to receive, council tax reduction,

and where more than one reduction week or part-week is identified by reference to heads (i) and (ii) the later or latest reduction week or, as the case may be, the later or latest part-week, and

(c) “relevant subsequent week” means the reduction week or part-week which includes the day on which the further application or, if more than one further application has been made, the last application was made.

Diminishing notional capital (applicants with an award of universal credit)

73

(1) Where an applicant with an award of universal credit is treated as possessing capital under regulation 71(2) (notional capital), then for each subsequent assessment period (or, in a case where the applicant had an award of universal credit and that award has terminated, each subsequent month) the amount of capital the applicant is treated as possessing (“the notional capital”) reduces—

(a) in a case where the notional capital exceeds £16,000, by the amount which the Secretary of State considers under regulation 50(3)(a) of the 2013 Regulations would be the amount of an award of universal credit that would be made to the applicant (assuming they met the conditions in section 4 and 5 of the 2012 Act) if it were not for the notional capital, or

(b) in a case where the notional capital exceeds £6,000 but not £16,000 (including where the notional capital has reduced to an amount equal to or less than £16,000 in accordance with sub-paragraph (a)) by the amount of unearned income that the notional capital is treated as yielding under regulation 63 (assumed yield from capital).

(2) The weekly reduction of an applicant’s notional capital is to be determined by dividing the amount by which the notional capital has reduced in an assessment period by the number equal to the number of days in that period and multiplying the quotient by 7.

CHAPTER 6 — Miscellaneous

Compensation for personal injury

74

(1) This regulation applies where a sum has been awarded to an applicant, or has been agreed by or behalf of an applicant—

(a) in consequence of a personal injury to that applicant, or

(b) as compensation for the death of one or both parents where the applicant is under the age of 18.

(2) If, in accordance with an order of the court or an agreement, the applicant receives all or part of that sum by way of regular payments, those payments are to be disregarded in the calculation of the applicant’s unearned income.

(3) If the sum has been used to purchase an annuity, payments under the annuity are to be disregarded in the calculation of the applicant’s unearned income.

(4) If the sum is held in trust, any capital of the trust derived from that sum is to be disregarded in the calculation of the applicant’s capital and any income from the trust is to be disregarded in the calculation of the applicant’s unearned income.

(5) If the sum is administered by the court on behalf of the applicant or can only be disposed of by direction of the court, it is to be disregarded in the calculation of the applicant’s capital and any regular payments from that amount are to be disregarded in the calculation of the applicant’s unearned income.

(6) If the sum is not held in trust or has not been used to purchase an annuity or otherwise disposed of, but has been paid to the applicant within the past 12 months, that sum is to be disregarded in the calculation of the applicant’s capital.

Special schemes for compensation etc.

75

(1) This regulation applies where an applicant receives a payment or payment in kind from a scheme established or approved by the Secretary of State or the Scottish Ministers or from a trust established with funds provided by the Secretary of State or from ILF Scotland for the purpose of—

(a) providing compensation or support in respect of—

(i) an applicant having been diagnosed with variant Creutzfeldt-Jacob disease ...,

(ii) the bombings in London on 7 July 2005,

(iii) persons who have been interned or suffered forced labour, injury, property loss or loss of a child during the Second World War,

(iv) the terrorist attacks in London on 22 March 2017 or 3 June 2017,

(v) the bombing in Manchester on 22 May 2017, or

(b) supporting persons with a disability to live independently in their accommodation.

(1A) This regulation also applies where an applicant receives any of the following payments—

(a) any payment or interest on a payment made under the Windrush Compensation Scheme (Expenditure) Act 2020,

(b) any redress payment made under part 4 of the Redress for Survivors (Historical Child Abuse in Care) (Scotland) Act 2021,

(c) any ex gratia payment made at the discretion of the Scottish Ministers from the Advance Payment Scheme within the meaning of section 42(7) of the Redress for Survivors (Historical Child Abuse in Care) (Scotland) Act 2021,

(d) a Grenfell Tower payment,

(e) a Post Office compensation payment, ...

(f) a vaccine damage payment where the applicant—

(i) receives a vaccine damage payment or is a person for whose benefit a vaccine damage payment was made,

(ii) is the partner of a person referred to in head (i) and receives a payment by or on behalf of that person which is derived from a vaccine damage payment,

(iii) was the partner of a person referred to in head (i) immediately before the person’s death and receives a payment from their estate which is derived from a vaccine damage payment, or

(iv) in a case where a vaccine damage payment is made to the personal representative of a person who was severely disabled as a result of vaccination (“P”), was P’s partner immediately before P’s death and receives a payment from P’s estate which is derived from a vaccine damage payment ...

(g) any payment made under the Victims of Overseas Terrorism Compensation Scheme ,

(h) any payment made under or by an infected blood payment scheme ...

(i) any payment made from the estate of a deceased person where—

(i) the payment derives from a payment made under or by an infected blood payment scheme, and

(ii) the payment it derives from was made to the estate of the deceased person as a result of that person having been infected through treatment with blood, blood products or tissue, or through another person being so infected , or

(j) any payment made under or by the LGBT Financial Recognition Scheme.

(2) Any such payment, if it is capital, is to be disregarded in the calculation of the applicant’s capital and, if it is income, is to be disregarded in the calculation of the applicant’s income.

(3) Where an applicant is the partner, parent, son or daughter of a diagnosed ... person referred to in paragraph (1)(a)(i) a payment received from the scheme or trust, or from the diagnosed ... person or from their estate is to be disregarded if it would be disregarded in relation to an award of state pension credit by virtue of paragraph 13 or 15 of schedule 5 of the State Pension Credit Regulations 2002[^f00184].

Company analogous to a partnership or one person business

76

(1) Where an applicant stands in a position analogous to that of a sole owner or partner in relation to a company which is carrying on a trade or a property business, the applicant is to be treated, for the purposes of this Part, as the sole owner or partner.

(2) Where paragraph (1) applies, the applicant is to be treated, subject to paragraph (3)(a), as possessing an amount of capital equal to the value, or the applicant’s share of the value, of the capital of the company and the value of the applicant’s holding in the company is to be disregarded.

(3) Where paragraph (1) applies in relation to a company which is carrying on a trade—

(a) any assets of the company that are used wholly and exclusively for the purposes of the trade are to be disregarded from the applicant’s capital while they are engaged in activities in the course of that trade, and

(b) the income of the company or the applicant’s share of that income is to be treated as the applicant’s income and calculated in the manner set out in regulation 51 (self-employed earnings) as if it were self-employed earnings.

(4) Any self-employed earnings which the applicant is treated as having by virtue of paragraph (3)(b) are in addition to any employed earnings the applicant receives as a director or employee of the company.

(5) This regulation does not apply where the applicant derives income from the company that is employed earnings by virtue of Chapter 8 (workers under arrangements made by intermediaries), Chapter 9 (managed service companies) or Chapter 10 (workers’ services provided through intermediaries) of Part 2 of ITEPA and that income is derived from activities that are the applicant’s main employment.

(6) In paragraph (1) “property business” has the meaning in section 204 of the Corporation Tax Act 2009[^f00185].

CHAPTER 7 — Childcare charges

Treatment of childcare charges (applicants with no award of universal credit)

77

(1) This regulation does not apply, and instead regulation 78 applies, where an applicant or an applicant’s partner has, or the partners jointly have, an award of universal credit.

(2) This regulation applies where an applicant is incurring relevant childcare charges and—

(a) is a lone parent and is engaged in remunerative work,

(b) is a member of a couple where both are engaged in remunerative work, or

(i) is incapacitated as described in paragraph (12),

(ii) is a patient, or

(iii) is in prison (whether serving a custodial sentence or remanded in custody awaiting trial or sentence).

(3) For the purposes of paragraph (2) and subject to paragraph (5), a person to whom paragraph (4) applies is to be treated as engaged in remunerative work for a period not exceeding 28 weeks during which the person—

(a) is paid statutory sick pay,

(b) is paid short-term incapacity benefit at the lower rate under section 30A of the 1992 Act[^f00186],

(d) is paid income support on the grounds of incapacity for work under regulation 4ZA and paragraph 7 or 14 of schedule 1B of the Income Support Regulations[^f00187], or

(e) is credited with earnings on the grounds of incapacity for work or limited capability for work under regulation 8B of the Social Security (Credits) Regulations 1975[^f00188].

(4) This paragraph applies to a person who was engaged in remunerative work immediately before as the case may be—

(a) the first day of the period in respect of which the person was first paid statutory sick pay, short-term incapacity benefit, an employment and support allowance or income support on the grounds of incapacity for work, or

(b) the first day of the period in respect of which earnings are credited.

(5) In a case to which paragraph (3)(d) or (e) applies, the period of 28 weeks begins on the day on which the person is first paid income support or on the first day of the period in respect of which earnings are credited, as the case may be.

(6) Relevant childcare charges are the charges for care referred to in paragraphs (7) and (8) and they must be calculated on a weekly basis in accordance with paragraph (11).

(7) The charges referred to in paragraph (6) are charges for care which is provided—

(a) in the case of any child of the applicant’s family who is not disabled, in respect of the period beginning on that child’s date of birth and ending on the day preceding the first Monday in September following that child’s fifteenth birthday, or

(b) in the case of any child of the applicant’s family who is disabled, in respect of the period beginning on that child’s date of birth and ending on the day preceding the first Monday in September following their sixteenth birthday.

(8) The charges referred to in paragraph (6) are charges for care which is provided by one or more of the care providers listed in paragraph (9) and not paid—

(a) in respect of the child’s compulsory education,

(b) by an applicant to a partner or by a partner to an applicant in respect of any child for whom either or any of them is responsible in accordance with regulation 7 (when a person is responsible for a child or young person), or

(9) The care to which paragraph (8) refers may be provided—

(a) out of school hours, by a school on school premises or by a local authority—

(i) for a child who is not disabled, in respect of the period beginning on the child’s eighth birthday and ending on the day preceding the first Monday in September following the child’s fifteenth birthday, or

(ii) for a child who is disabled, in respect of the period beginning on the child’s eighth birthday and ending on the day preceding the first Monday in September following their sixteenth birthday,

(b) by a child care provider approved in accordance with the Tax Credit (New Category of Child Care Provider) Regulations 1999[^f00189],

(d) by a person who is excepted from registration under Part 2 of the Children and Families (Wales) Measure 2010 because the childcare the person provides is in a school or establishment referred to in article 11, 12 or 14 of the Child Minding and Day Care Exceptions (Wales) Order 2010[^f00191],

(e) by—

(i) persons registered under section 59(1) of the Public Services Reform (Scotland) Act 2010,

(ii) local authorities registered under section 83(1) of that Act, where the care provided is child minding or day care of children within the meaning of that Act,

(f) by a person prescribed in Regulations made pursuant to section 12(4) of the Tax Credits Act 2002[^f00192],

(g) by a person who is registered under Chapter 2 or 3 of Part 3 of the Childcare Act 2006[^f00193],

(h) by any of the schools mentioned in section 34(2) of the Childcare Act 2006 in circumstances where the requirement to register under Chapter 2 of Part 3 of that Act does not apply by virtue of that subsection,

(i) by any of the schools mentioned in section 53(2) of the Childcare Act 2006[^f00194] in circumstances where the requirement to register under Chapter 3 of Part 3 of that Act does not apply by virtue of that subsection,

(j) by any of the establishments mentioned in section 18(5) of the Childcare Act 2006[^f00195] in circumstances where the care is not included in the meaning of “childcare” for the purposes of Parts 1 and 3 of that Act by virtue of that subsection,

(k) by a foster carer or kinship carer approved under the Looked After Children (Scotland) Regulations 2009[^f00196] in relation to a child other than a child who has been placed with that carer—

(i) by virtue of a requirement of the children’s hearing under section 83(2)(a) of the Children’s Hearings (Scotland) Act 2011[^f00197],

(ii) by a local authority exercising the right to determine the residence of a child in respect of whom a permanence order has been granted under section 81 of the Adoption and Children (Scotland) Act 2007[^f00198], or

(iii) in accordance with the Looked After Children (Scotland) Regulations 2009,

(l) by a foster parent under the Fostering Services (England) Regulations 2011[^f00199] or the Fostering Services (Wales) Regulations 2003[^f00200] in relation to a child other than one whom the foster parent is fostering,

(m) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(n) by a person who is not a relative of the child wholly or mainly in the child’s home.

(10) In paragraphs (7) and (9)(a) “the first Monday in September” means the Monday which first occurs in the month of September in any year.

(11) Relevant childcare charges must be estimated over a period, not exceeding a year, that is appropriate to allow the average weekly charge to be estimated accurately having regard to information about the amount of that charge provided by the person providing the care.

(12) For the purposes of paragraph (2)(c), the other member of a couple is incapacitated where—

(a) the applicant’s applicable amount includes a disability premium under paragraph 11 of schedule 1 on account of the other member’s incapacity or the work-related activity component under paragraph 21 of that schedule or the support component under paragraph 22 of that schedule on account of that other member having limited capability for work,

(b) the applicant’s applicable amount would include a disability premium under paragraph 11 of that schedule on account of the other member’s incapacity but for that other member being treated as capable of work by virtue of a determination made in accordance with Regulations made under section 171E of the 1992 Act[^f00203],

(c) the applicant’s applicable amount would include the support component under paragraph 22 of that schedule or the work-related activity component under paragraph 21 of that schedule on account of the other member having limited capability for work but for that other member being treated as not having limited capability for work by virtue of a determination made in accordance with the Employment and Support Allowance Regulations,

(d) the applicant is, or is treated as, incapable of work and has been incapable, or treated as incapable, of work in accordance with the provisions of, and Regulations made under, Part 12A of the 1992 Act (incapacity for work)[^f00204] for a continuous period of not less than 196 days, and for this purpose any two or more separate periods separated by a break of not more than 56 days are to be treated as one continuous period,

(e) the applicant has, or is treated as having, limited capability for work and has had, or been treated as having, limited capability for work in accordance with the Employment and Support Allowance Regulations for a continuous period of not less than 196 days, and for this purpose any two or more separate periods separated by a break of not more than 84 days are to be treated as one continuous period,

(f) there is payable in respect of the other member one or more of the following pensions or allowances—

(i) long-term incapacity benefit or short-term incapacity benefit at the higher rate under schedule 4 of the 1992 Act[^f00205],

(ii) attendance allowance under section 64 of the 1992 Act[^f00206],

(iii) severe disablement allowance under section 68 of the 1992 Act[^f00207],

(iv) disability living allowance,

(v) child disability payment,

(vi) armed forces independence payment,

(vii) personal independence payment,

(viii) increase of disablement pension under section 104 of the 1992 Act,

(ix) a pension increase paid as part of a war disablement pension or under an industrial injuries scheme which is analogous to an allowance or increase of disablement pension under head (ii), (iv), (vii) or (viii) above, ...

(x) main phase employment and support allowance, ...

(xi) adult disability payment, ...

(xii) pension age disability payment, or

(xiii) Scottish adult disability living allowance,

(g) a pension or allowance to which sub-paragraph (f)(ii), (iv), (vii), (viii) or (ix) refers was payable on account of the other member’s incapacity but has ceased to be payable in consequence of the other member becoming a patient, which in this regulation means a person (other than a person who is serving a sentence of imprisonment or detention in a youth custody institution) who is regarded as receiving free in-patient treatment within the meaning of regulation 2(4) and (5) of the Social Security (Hospital In-Patients) Regulations 2005[^f00208],

(ga) adult disability payment payable on account of the other member’s incapacity has been reduced to £0 under regulation 28(2) (effect of admission to hospital on ongoing entitlement to Adult Disability Payment) of the Disability Assistance for Working Age People (Scotland) Regulations 2022,

(h) sub-paragraph (f), (g) or (ga) would apply to the other member if the legislative provisions referred to in those sub-paragraphs were provisions under any corresponding enactment having effect in Northern Ireland, or

(i) the other member has a vehicle supplied for use on the road and to be controlled by the occupant, provided under section 46 of the National Health Service (Scotland) Act 1978[^f00209], paragraph 9(1) of schedule 1 of the National Health Service Act 2006[^f00210] or article 30(1) of the Health and Personal Social Services (Northern Ireland) Order 1972[^f00211].

(13) Where paragraph (12)(d) applies and the applicant ceases to be, or to be treated as, incapable of work but within a period of 56 days or less of that cessation the applicant is, or is treated as, incapable of work, paragraph (12)(d) applies from the time the applicant is again, or is again treated as, incapable of work for so long as the applicant is, or is treated as, incapable of work.

(14) Where paragraph (12)(e) applies and the applicant ceases, to have, or to be treated as having, limited capability for work but within a period of 84 days or less of that cessation the applicant has, or is treated as having, limited capability for work, paragraph (12)(e) applies from the time the applicant has again, or is again treated as having, limited capability for work for so long as that situation continues.

(15) For the purposes of paragraphs (7) and (9)(a), a person is disabled if the person is a person—

(a) in respect of whom disability living allowance, Scottish adult disability living allowance, child disability payment , adult disability payment or personal independence payment is payable, or has ceased to be payable solely because the person is a patient, or in respect of whom armed forces independence payment is payable,

(b) who is blind, or

(c) who has ceased to be certified as blind on that person gaining eyesight, where the person ceased to be certified as blind within the period beginning 28 weeks before the first Monday in September following the person’s fifteenth birthday and ending on the day preceding the person’s sixteenth birthday.

(16) For the purposes of paragraph (2) a person on maternity leave, paternity leave, neonatal care leave, shared parental leave, parental bereavement leave or adoption leave is to be treated as if engaged in remunerative work for the period specified in paragraph (17) (“the relevant period”) provided that—

(a) in the week before the period of maternity leave, paternity leave, neonatal care leave, shared parental leave, parental bereavement leave or adoption leave began the person was in remunerative work,

(b) the person is incurring relevant childcare charges, and

(c) the person is entitled to either statutory maternity pay under section 164 of the 1992 Act[^f00212], statutory paternity pay by virtue of section 171ZA or 171ZB of the 1992 Act[^f00213], statutory neonatal care pay, statutory shared parental pay, statutory adoption pay by virtue of section 171ZL of the 1992 Act[^f00214], statutory parental bereavement pay, maternity allowance under section 35 of the 1992 Act[^f00215] or qualifying support.

(17) For the purposes of paragraph (16) the relevant period begins on the day on which the person’s maternity leave, paternity leave, neonatal care leave, shared parental leave, parental bereavement leave or adoption leave commences and ends on the earliest of the following dates—

(a) the date that leave ends,

(b) if no childcare element of working tax credit is in payment on the date that entitlement to maternity allowance, qualifying support, statutory maternity pay, statutory paternity pay, statutory neonatal care pay, statutory shared parental pay, statutory parental bereavement pay or statutory adoption pay ends, the date that entitlement ends, or

(c) if a childcare element of working tax credit is in payment on the date that entitlement to maternity allowance or qualifying support, statutory maternity pay, statutory paternity pay, statutory neonatal care pay, statutory shared parental pay, statutory parental bereavement pay or statutory adoption pay ends, the date that entitlement to that award of the childcare element of the working tax credit ends.

(18) In this regulation—

(a) “qualifying support” means income support to which the person is entitled by virtue of paragraph 14B of schedule 1B of the Income Support Regulations, ...

“relative” means a parent, step-parent, grandparent, uncle, aunt, brother, sister, nephew or niece or where a parent, step-parent, grandparent, brother or sister is a member of a couple, the other member of that couple, and

(b) “childcare element of working tax credit” means the element of working tax credit prescribed under section 12 of the Tax Credits Act 2002 (childcare element)[^f00216].

Treatment of childcare charges (applicants with an award of universal credit)

78

(1) This regulation applies where the applicant or the applicant’s partner has, or the partners jointly have, an award of universal credit that includes in the calculation of the maximum universal credit award a childcare costs element.

(2) An applicant is incurring relevant childcare charges in respect of an assessment period where the applicant’s award or the applicant’s partner’s award or their joint award of universal credit includes a childcare costs element for an assessment period.

(3) An applicant’s weekly relevant childcare charges for the purpose of regulation 42(2)(c) is calculated as follows—

Step 1

Divide the amount of the childcare costs element in the applicant’s award of universal credit for the assessment period in which a reduction week falls by 85.

Step 2

Multiply the amount produced by step 1 by 100.

Step 3

Multiply the amount produced by step 2 by 12.

Step 4

Divide the amount produced by step 3 by 52 and round to the nearest penny.

(4) In this regulation “childcare costs element” has the meaning given to it in regulation 31 of the 2013 Regulations.

PART 7 — Calculation of council tax reduction

Maximum council tax reduction

79

(1) Subject to paragraphs (4) and (5), for the purposes of regulation 13 (conditions of entitlement to council tax reduction) the amount of a person’s maximum council tax reduction in respect of a day for which the person is liable to pay council tax is amount A divided by the amount B where—

(a) A is the amount set by the relevant authority as the council tax for the relevant financial year in respect of the dwelling in which the person is a resident and for which the person is liable, subject to—

(i) any discount which may be appropriate to that dwelling, and

(ii) any reduction in liability for council tax under Regulations made under section 80 of the Act or under a scheme established under section 80A of the Act[^f00217], other than a reduction under these Regulations, and

(b) B is the number of days in that financial year,

less any deductions in respect of non-dependants which fall to be made under regulation 90 (non-dependant deductions).

(2) Subject to paragraphs (4) and (5), for the purposes of regulation 14 (conditions of entitlement to council tax reduction – dwellings in bands E to H) the amount of a person’s maximum council tax reduction in respect of a day for which the person is liable to pay council tax is the amount—

$A− A C B$

less any deductions in respect of non-dependants which fall to be made under regulation 90.

(3) In paragraph (2)—

(a) A and B have the same meanings as in paragraph (1), and

(b) C is—

(i) 1.075 if the relevant dwelling is in valuation band E,

(ii) 1.125 if the relevant dwelling is in valuation band F,

(iii) 1.175 if the relevant dwelling is in valuation band G,

(iv) 1.225 if the relevant dwelling is in valuation band H.

(4) Subject to paragraph (5), where an applicant is jointly and severally liable for council tax in respect of a dwelling in which the person is resident with one or more other persons, but excepting any person residing with the applicant who is a student to whom regulation 20(2) (persons not entitled to council tax reduction: students) applies, in determining the maximum council tax reduction in the person’s case in accordance with paragraph (1) or (2) amount A is to be divided by the number of persons who are jointly and severally liable for that tax.

(5) Where an applicant is jointly and severally liable for council tax in respect of a dwelling with only the applicant’s partner, paragraph (4) does not apply.

Extended council tax reduction

80

(1) Subject to regulation83 (extended council tax reduction: movers), a person who is entitled to council tax reduction by virtue of the general conditions of entitlement is entitled to extended council tax reduction where—

(a) the person or any partner of the person was entitled to a qualifying income-related benefit,

(b) entitlement to a qualifying income-related benefit ceased because the person or the person’s partner—

(i) commenced employment as an employed or self-employed earner,

(ii) increased their earnings from employment as an employed or self-employed earner, or

(iii) increased the number of hours worked in employment as an employed or self-employed earner,

and that employment is, or the increased earnings or increased number of hours are, expected to last 5 weeks or more, and

(c) the person or the person’s partner had been entitled to and in receipt of a qualifying income-related benefit, jobseeker’s allowance or a combination of those benefits for a continuous period of at least 26 weeks before the day on which the entitlement to a qualifying income-related benefit ceased.

(2) For the purposes of this regulation, where a person or any partner of the person is entitled to and in receipt of joint-claim jobseeker’s allowance the person or the person’s partner, as the case may be, is to be treated as being entitled to and in receipt of jobseeker’s allowance.

(3) For the purposes of this regulation, a person is entitled to council tax reduction by virtue of the general conditions of entitlement where—

(a) the person ceased to be entitled to council tax reduction on vacating the dwelling in which the person was resident,

(b) the day on which the person vacated the dwelling was either in the week in which entitlement to a qualifying income-related benefit ceased, or in the preceding week, and

(4) This regulation does not apply where, on the day before a person’s entitlement to income support ceased, regulation 6(5) of the Income Support Regulations (remunerative work: housing costs)[^f00218] applied to that person.

Duration of period of entitlement to extended council tax reduction

81

(1) Subject to regulation 83 (extended council tax reduction: movers), where a person is entitled to extended council tax reduction, the period of entitlement starts on the first day of the reduction week immediately following the reduction week in which the person, or any partner of the person, ceased to be entitled to a qualifying income-related benefit.

(2) For the purpose of paragraph (1), a person or a person’s partner ceases to be entitled to a qualifying income-related benefit on the day immediately following the last day of entitlement to that benefit.

(3) The period of entitlement to extended council tax reduction ends on the earliest of—

(a) the end of a period of 4 weeks of that entitlement, or

(b) the first day on which the person who is entitled to extended council tax reduction has no liability for council tax.

Amount of extended council tax reduction

82

(1) For any week during the period of entitlement to extended council tax reduction the amount of council tax reduction to which the person is entitled is the higher of—

(a) the amount of council tax reduction to which the person was entitled in the last reduction week before the person or the person’s partner ceased to be entitled to a qualifying income-related benefit,

(b) the amount of council tax reduction to which the person would be entitled for any reduction week during the period of entitlement to extended council tax reduction if regulation 80 (extended council tax reduction) did not apply to the person, or

(c) the amount of council tax reduction to which the person’s partner would be entitled if regulation 80 did not apply to the person.

(2) Paragraph (1) does not apply in the case of a mover.

(3) Where a person is entitled to extended council tax reduction under this regulation and the person’s partner applies for council tax reduction, that partner is not entitled to council tax reduction during the other partner’s period of entitlement to extended council tax reduction.

Extended council tax reduction: movers

83

(1) Where a mover who is entitled to extended council tax reduction in respect of liability to pay council tax to the first authority moves to reside in a dwelling in the area of the second authority that mover is entitled to extended council tax reduction in respect of any liability to pay council tax to the second authority of an amount calculated in accordance with paragraph (2).

(2) The amount of extended council tax reduction to which the mover is entitled is the amount of council tax reduction to which the mover was entitled for the last reduction week before the mover ceased to be entitled to a qualifying income-related benefit.

(3) The period of entitlement to extended council tax reduction in respect of liability to pay council tax to the first authority ends on the earliest of—

(a) the first Sunday after the move, or

(b) the day on which the mover’s liability to pay council tax to the first authority ends.

(4) The period of entitlement to extended council tax reduction granted by virtue of paragraph(1)—

(a) starts on the Monday following the day of the move, and

(b) ends on the expiry of the period of entitlement to extended council tax reduction which would have applied had the mover not moved from the area of the first authority.

Relationship between council tax reduction and extended council tax reduction

84

(1) Where a person’s entitlement to council tax reduction would have ended when the applicant ceased to be entitled to a qualifying income-related benefit in the circumstances listed in regulation 80(1)(b) (extended council tax reduction), that eligibility will not cease until the end of the period of eligibility for extended council tax reduction.

(2) Part 9 (effective date) does not apply to any extended council tax reduction granted in accordance with regulation 82(1)(a) (amount of extended council tax reduction) or 83(2) (extended council tax reduction: movers).

Extended council tax reduction (qualifying contributory benefits)

85

(1) A person who is entitled to council tax reduction by virtue of the general conditions of entitlement is entitled to extended council tax reduction (qualifying contributory benefits) where—

(a) the person or any partner of the person was entitled to a qualifying contributory benefit,

(b) entitlement to a qualifying contributory benefit ceased because the person or the person’s partner—

(i) commenced employment as an employed or self-employed earner,

(ii) had an increase in earnings from such employment, or

(iii) increased the number of hours worked in such employment,

and that employment is or, as the case may be, increased earnings or increased number of hours are expected to last 5 weeks or more,

(c) the person or the person’s partner had been entitled to and in receipt of a qualifying contributory benefit or a combination of qualifying contributory benefits for a continuous period of at least 26 weeks before the day on which the entitlement to a qualifying contributory benefit ceased, and

(d) the person or the person’s partner was not entitled to and not in receipt of a qualifying income-related benefit in the last reduction week in which the person or the person’s partner was entitled to a qualifying contributory benefit.

(2) For the purposes of this regulation, a person is entitled to council tax reduction by virtue of the general conditions of entitlement where—

(a) the person ceased to be entitled to council tax reduction because the person vacated the dwelling in which the person was resident,

(b) the day on which the person vacated the dwelling was either in the week in which entitlement to a qualifying contributory benefit ceased, or in the preceding week, and

Duration of extended council tax reduction (qualifying contributory benefits)

86

(1) Subject to regulation 88 (extended council tax reduction (qualifying contributory benefits: movers)), where a person is entitled to extended council tax reduction (qualifying contributory benefits), the period of entitlement starts on the first day of the reduction week immediately following the reduction week in which the person or the person’s partner ceased to be entitled to a qualifying contributory benefit.

(2) For the purpose of paragraph (1), a person or a person’s partner ceases to be entitled to a qualifying contributory benefit on the day immediately following the last day of entitlement to that benefit.

(3) The period of entitlement to council tax reduction (qualifying contributory benefits) ends on the earliest of—

(a) the end of a period of 4 weeks of entitlement, or

(b) the day on which the entitled person’s liability for council tax ends.

Amount of extended council tax reduction (qualifying contributory benefits)

87

(1) For any week during the period of entitlement to council tax reduction (qualifying contributory benefits) the amount of council tax reduction (qualifying contributory benefits) is the higher of—

(a) the amount of council tax reduction to which the person was entitled in the last reduction week before the person or the person’s partner ceased to be entitled to a qualifying contributory benefit,

(b) the amount of council tax reduction to which the person would be entitled for any reduction week during the extended payment period, if regulation 85 (extended council tax reduction (qualifying contributory benefits)) did not apply to the person, or

(c) the amount of council tax reduction to which the person’s partner would be entitled if regulation 86 (duration of extended council tax reduction (qualifying contributory benefits)) did not apply to the person.

(2) Paragraph (1) does not apply in the case of a mover.

(3) Where a person is entitled to extended council tax reduction (qualifying contributory benefits) under this regulation and the person’s partner applies for council tax reduction, that partner is not entitled to council tax reduction during the person’s period of entitlement to extended council tax reduction (qualifying contributory benefits).

Extended council tax reduction (qualifying contributory benefits: movers)

88

(1) Where a mover who is entitled to extended council tax reduction (qualifying contributory benefits) in respect of liability to pay council tax to the first authority moves to reside in a dwelling in the area of the second authority that mover is entitled to extended council tax reduction in respect of any liability to pay council tax to the second authority of an amount calculated in accordance with paragraph (2).

(2) The amount of extended council tax reduction (qualifying contributory benefit) to which the mover is entitled is the amount of council tax reduction to which the mover was entitled for the last reduction week before the mover ceased to be entitled to a qualifying contributory benefit.

(3) The period of entitlement to extended council tax reduction (qualifying contributory benefit) in respect of liability to pay council tax to the first authority ends on the earliest of—

(a) the first Sunday after the move, or

(b) the day on which the mover’s liability to pay council tax to the first authority ends.

(4) The period of entitlement to extended council tax reduction (qualifying contributory benefits) granted by virtue of paragraph (1)—

(a) starts on the Monday following the day of the move, and

(b) ends on the expiry of the period of extended council tax reduction (qualifying contributory benefits) which would have applied had the mover not moved from the area of the first authority.

Relationship between council tax reduction and extended council tax reduction (qualifying contributory benefits)

89

(1) Where a person’s entitlement to council tax reduction would have ended when the person ceased to be entitled to a qualifying contributory benefit in the circumstances listed in regulation 80(1)(b), that entitlement does not cease until the end of the period of entitlement to extended council tax reduction.

(2) Part 9 (effective date) does not apply to any extended council tax reduction (qualifying contributory benefits) granted in accordance with regulation82(1)(a) (amount of extended council tax reduction) or 83(2) (amount of extended council tax reduction: movers).

PART 8 — Special Rules

Non-dependant deductions

90

(1) Subject to the following provisions of this regulation, the non-dependant deductions in respect of a day referred to in regulation 79 (maximum council tax reduction) are—

(a) in respect of a non-dependant aged 18 or over in remunerative work, £15.95 x 1/7, and

(b) in respect of a non-dependant aged 18 or over to whom sub-paragraph (a) does not apply, £5.35 x 1/7.

(2) In the case of a non-dependant aged 18 or over to whom paragraph (1)(a) applies, where it is shown to the relevant authority that the person’s normal gross weekly income is—

(a) less than £273.00, the deduction to be made is that specified in paragraph (1)(b),

(b) not less than £273.00 but less than £474.00, the deduction to be made is £10.55 x 1/7, or

(3) Only one deduction is to be made in respect of a couple and where, but for this paragraph, the amount that would fall to be deducted in respect of one member of a couple is higher than the amount (if any) that would fall to be deducted in respect of the other member, the higher amount is to be deducted.

(4) In applying the provisions of paragraph (2) in the case of a couple regard must be had, for the purpose of that paragraph, to the couple’s joint weekly gross income.

(5) Where in respect of a day—

(a) a person is a resident in a dwelling but is not liable for council tax in respect of that dwelling on that day,

(b) other residents in that dwelling (the liable persons) have joint and several liability for council tax in respect of that dwelling on that day otherwise than by virtue of section 77 or 77A of the Act (liability of spouses and civil partners)[^f00219], and

the deduction in respect of that non-dependant is to be apportioned equally between those liable persons.

(6) No deduction is to be made in respect of any non-dependants occupying an applicant’s dwelling if the applicant or the applicant’s partner is—

(a) blind or treated as blind by virtue of paragraph 12(2) of schedule 1 (additional condition for the disability premium), or

(b) receiving in respect of the applicant or the applicant’s partner as the case may be either—

(i) attendance allowance,

(ii) the care component of the disability living allowance,

(iii) the care component of child disability payment,

(iv) armed forces independence payment, ...

(v) the daily living component of personal independence payment , ...

(vi) the daily living component of adult disability payment ,...

(vii) pension age disability payment , or

(viii) the care component of Scottish adult disability living allowance.

(7) No deduction is to be made in respect of a non-dependant if—

(a) although residing with the applicant, it appears to the relevant authority that the non-dependant’s normal home is elsewhere, or

(b) the non-dependant is in receipt of a training allowance paid in connection with youth training established under section 2 of the 1973 Act or section 2 of the Enterprise and New Towns (Scotland) Act 1990, or

(d) the non-dependant is not residing with the applicant because the non-dependant has been a patient for a period in excess of 52 weeks, and for these purposes where a person has been a patient for two or more distinct periods separated by one or more intervals, each not exceeding 28 days, the person is to be treated as having been a patient continuously for a period equal in duration to the total of those distinct periods, or

(e) the non-dependant is not residing with the applicant because the non-dependant is a member of the regular forces or the reserve forces (within the meaning of section 374 of the Armed Forces Act 2006[^f00220]) who is absent, while on operations, from the dwelling usually occupied as that person’s home.

(8) No deduction is to be made in respect of a non-dependant—

(a) who is a qualifying income-related benefit claimant or on state pension credit,

(b) to whom schedule 1 of the Act applies (persons disregarded for purposes of discount)[^f00221], but this sub-paragraph does not apply to a non-dependant who is a student to whom paragraph 4 of that schedule refers, or

(c) who is entitled to an award of universal credit where the award is calculated on the basis that the non-dependant does not have any earned income, within the meaning given by regulation 52 of the 2013 Regulations.

(9) In the application of paragraph (2) there is to be disregarded from the person’s weekly gross income—

(a) any attendance allowance, pension age disability payment, disability living allowance, Scottish adult disability living allowance, child disability payment , adult disability payment, armed forces independence payment or personal independence payment received by the person,

(b) any payment which, had the person’s income fallen to be calculated under Part 6 (assessment of household income and capital), would have been disregarded under regulation 75, and

Second adult rebate

91

(1) Subject to paragraphs (2) and (3), the second adult rebate where the conditions set out in regulation 13(3) and (7) (conditions of entitlement to council tax reduction) are fulfilled is the amount determined in accordance with schedule 2.

(2) Subject to paragraph (3), where an applicant is jointly and severally liable for council tax in respect of a dwelling in which the applicant is resident with one or more other persons, in determining the second adult rebate in the applicant’s case the amount determined in accordance with schedule 2 must be divided by the number of persons who are jointly and severally liable for that tax.

(3) Where an applicant is jointly and severally liable for council tax in respect of a dwelling with only the applicant’s partner paragraph (2) does not apply.

Residents of a dwelling to whom regulation 13(7) does not apply

92

Regulation 13(7) (conditions of entitlement to council tax reduction) does not apply in respect of—

(a) a person who is liable for council tax solely in consequence of the provisions of section77 or 77A of the Act (spouse’s or civil partner’s joint and several liability for tax)[^f00222],

(b) a person who is residing with a couple where the applicant for council tax reduction is a member of that couple and neither member of that couple is a person who, in accordance with schedule 1 of the Act, falls to be disregarded for the purposes of discount,

(c) a person who jointly with the applicant falls within the same sub-paragraph of section75(2)(a) to (e) of the Act (persons liable to pay council tax)[^f00223] as applies in the case of the applicant, or

(d) a person who is residing with two or more persons both or all of whom fall within the same sub-paragraph of section 75(2)(a) to (e) of the Act (persons liable to pay council tax) and two or more of those persons are not persons who, in accordance with schedule1 of the Act, fall to be disregarded for the purposes of discount.

PART 9

Review and appeal

Review of determination on an application

93

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) An applicant who is aggrieved by a determination on an application may serve a written notice on the relevant authority requesting that it review its determination.

(3) The notice under paragraph (2) must be served within two months of the determination it relates to and must state the matter by which, and the grounds on which, the applicant is aggrieved.

(4) Where a notice under paragraph (2) is served on a relevant authority, that authority must—

(a) consider the matter to which the notice relates,

(b) within two months of receipt of the notice, redetermine the application or decide that no alteration of the determination is to be made,

(c) notify the applicant in writing of its decision and that if the applicant remains aggrieved then an appeal may be made to the First-tier Tribunal within 42 days of the notification, with the address to which any notice of appeal may be sent.

Request for further review

94

(1) An applicant may appeal to the First-tier Tribunal where the relevant authority—

(a) has notified the applicant of its decision on a request for review under regulation 93(2) in accordance with paragraph (4)(c) of that regulation and the applicant wishes to dispute that decision, or

(b) has not notified the applicant of a decision on a request for review under regulation 93(2) and more than two months have elapsed since the notice requesting review was served.

(2) Notice of appeal to the First-tier Tribunal must be made in accordance with the First-tier Tribunal for Scotland Local Taxation Chamber (Rules of Procedure) Regulations 2022.

(3) An appeal to the First-tier Tribunal prevents the relevant authority from notifying the applicant under regulation 93(4)(c) of its decision on the request for review to which the appeal relates.

(4) The relevant authority must implement the decision of the First-tier Tribunal in respect of an appeal under paragraph (1) as soon as is reasonably practicable, including any calculation of the amount of an applicant’s entitlement to a council tax reduction that is required.

Panel to conduct further reviews

95

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Conduct of further reviews

96

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 10 — Transitional, savings and consequential provisions, and revocations

Transitional provision: applications

97

(1) Any person described in paragraph (2) is deemed to have made an application under these Regulations on 1 April 2022.

(2) For the purpose of paragraph (1) the persons are any person—

(a) who is entitled to council tax reduction on 31 March 2022,

(b) who made, or is deemed to have made, an application under the 2012 Regulations before 1 April 2022 which is not determined on or before 31 March 2022,

(c) other than a person described in sub-paragraph (a), who has served a written notice on a relevant authority requesting that it review its determination under regulation 90A(2) (review of determination on an application)[^f00225] of the 2012 Regulations and whose review request is pending immediately before 1 April 2022,

(d) other than a person described in sub-paragraph (a), who has made a request for further review of a determination on an application under regulation 90B (request for further review) of the 2012 Regulations and whose request is pending immediately before 1 April 2022.

(3) For the purposes of paragraph (2)(c) a review request is pending if a written notice has been served on a relevant authority requesting that it review its determination but the relevant authority has not notified the applicant in writing of its decision in accordance with regulation 90A(4)(c) of the 2012 Regulations.

(4) For the purposes of paragraph (2)(d) a request is pending if a request for further review of a determination on an application has been made but the procedure for conducting further reviews under regulations 90B to 90D of the 2012 Regulations has not been completed.

(5) Where a person is deemed to have made an application under paragraph (1)—

(a) any entitlement to council tax reduction as a result of that application takes effect from Monday 4 April 2022, unless the relevant authority determines that, although the person has no entitlement on that date, the person is entitled to council tax reduction from a later date, and

(b) except to the extent that the relevant authority has been or is notified that there has been a change of circumstances, it may continue to use information it has used to calculate entitlement under the 2012 Regulations, and its calculation of that entitlement, to calculate entitlement under these Regulations.

Transitional family premium

98

(1) Where on 31 March 2022 a person is entitled to an amount by virtue of regulation 2 (transitional provision) of the Council Tax Reduction (Scotland) Amendment Regulations 2016[^f00226] (“a transitional family premium”), the person is entitled to a transitional family premium under these Regulations.

(2) The amount of a transitional family premium is—

(a) £22.20 per week if that is the amount the applicant was entitled to on 31 March 2022, and

(b) in all other cases, £19.48 per week.

(3) A transitional family premium is to be included in determining the person’s weekly applicable amount (see regulation 35).

(4) The person ceases to have any further entitlement to a transitional family premium under these Regulations when the person—

(a) ceases to be a member of a family which includes at least one child or young person, or

(b) makes a new application for council tax reduction, but for the purposes of this regulation the following are not to be regarded as a new application—

(i) any application that relates to re-assessment of an existing award,

(ii) any deemed application under regulation 97.

Transitional entitlement to the disability premium, etc.

99

(1) Where on 31 March 2022 a person is entitled to disability premium under paragraph 10(1)(b) of schedule 1 to the 2012 Regulations by virtue of paragraph 1(1) or (2) (savings provision – persons incapable of work prior to 13 April 1995) of schedule 6 of those Regulations, the person is to be treated as entitled to a disability premium under paragraph 11 of schedule 1 of these Regulations for so long as the person is incapable of work in accordance with the provisions of, and Regulations made under, Part 12A of the 1992 Act (incapacity for work).

(2) Paragraph (1) does not apply to a person who ceases to be incapable of work or ceases to be treated as incapable of work in accordance with the provisions of, and Regulations made under Part 12A of the 1992 Act (incapacity for work) for a period of more than 56 continuous days that ends after 31 March 2022.

(3) Where, in any period immediately preceding 13th April 1995, the circumstances mentioned in paragraph 13(6) of schedule 1 of the Council Tax Benefit (General) Regulations 1992[^f00227], as in force on 12th April 1995, applied to a person to whom the disability premium was not applicable, that person is to be treated for the purposes of regulations 20(3)(e) (persons not entitled to council tax reduction: students) and 77(12)(g) (treatment of childcare charges) and paragraph 12(1)(b) (additional condition for the disability premium) of schedule 1 as if the person had been incapable of work in accordance with the provisions of, and Regulations made under, Part 12A of the 1992 Act (incapacity for work) throughout that period.

(4) Where a higher pensioner premium was applicable to a person on 12th April 1995, or at any time during the 56 days immediately preceding that date, by virtue of paragraph 13(1)(a)(ii) of schedule 1 of the Council Tax Benefit (General) Regulations 1992, as in force on that date, paragraph 12 of schedule 1 of these Regulations, in so far as it applies to the person, applies subject to the modifications in paragraph (5).

(5) The modifications are—

(a) in paragraph 12(1)(a)(i), for the words “long-term incapacity benefit” where they first appear, substitute “an invalidity pension” and for the words “in the case of long-term incapacity benefit”, substitute “in the case of invalidity pension”,

(b) in paragraph 12(1)(a)(ii)—

(i) for the words “long-term incapacity benefit when entitlement to that benefit” substitute “invalidity pension when entitlement to that pension”,

(ii) for the words “long-term incapacity benefit” where they second appear substitute “invalidity pension”,

(b) the circumstances of the applicant fall, and have fallen, in respect of a continuous period of not less than 28 weeks, within sub-paragraph (6) or, if the person was in Northern Ireland for the whole or part of that period, within one or more comparable Northern Irish provisions.

(d) in paragraph 12(3), for the words “or to be incapable of work”, substitute “for the purposes of the provisions specified in that provision”, and

(e) for sub-paragraphs (6) and (7), substitute—

(6) For the purposes of sub-paragraph (1)(b) the circumstances of an applicant fall within this sub-paragraph if— (a) the applicant provides evidence of incapacity in accordance with regulation 2 of the Social Security (Medical Evidence) Regulations 1976 (evidence of incapacity for work)[^f00228] in support of a claim for sickness benefit, invalidity pension or severe disablement allowance within the meaning of sections 31, 33 or 68 of the 1992 Act, provided that an adjudication officer has not determined the applicant is not incapable of work, or (b) the applicant is in receipt of statutory sick pay within the meaning of Part 11 of the 1992 Act.

Transitional addition in accordance with Part 6 of schedule 1 of the 2012 Regulations

100

(1) Where a person is in receipt of a transitional addition in accordance with Part 6 of schedule 1 of the 2012 Regulations (transitional addition)[^f00229] on 31 March 2022, or is deemed to have been in receipt of a transitional addition on that date by virtue of paragraph (4), that person is entitled to have their weekly applicable amount increased by the amount of that transitional addition.

(2) The addition described in paragraph (1)—

(a) is to be calculated in accordance with paragraphs 28 and 29 of that schedule, and

(b) is to cease on the occurrence of any circumstance described in paragraph 25(2) of that schedule or, as the case may be, paragraph 26(3) or 27(3) of that schedule.

(3) Where a person’s entitlement to a transitional addition ceased on or before 31 March 2022, or ceases after that date as a result of paragraph (2)(b), the person’s entitlement is restored if paragraph 26 or 27 of that schedule applies to the person.

(4) A person is deemed to have been in receipt of a transitional addition on 31 March 2022, despite not having actually been in receipt of a transitional addition on that date, if the person’s entitlement to a transitional addition is restored as described in paragraph (3).

Savings provisions

101

(1) Where paragraph (2) applies, the 2012 Regulations continue to have effect for the purpose described in paragraph (3) on and after 1 April 2022 as they did immediately before that date.

(2) This paragraph applies—

(a) in relation to any person described in regulation 97(2),

(b) where regulation 26(1), (4) or (7) (backdated entitlement) grants a person entitlement to council tax reduction for a day before 4 April 2022,

(c) where regulation 33(2) (newly liable persons) grants a person entitlement for the period between and including 1 and 3 April 2022, or

(d) in relation to any change of circumstances which takes effect prior to 4 April 2022, by virtue of regulation 81 of the 2012 Regulations (date on which a change of circumstances takes effect).

(3) The purpose is any purpose relating to entitlement to council tax reduction under the 2012 Regulations, in respect of any day before 4 April 2022.

(4) In relation to a person to whom paragraph (2)(b) or (c) applies, the application under these Regulations is to be treated as if it were an application validly made under the 2012 Regulations.

(5) Part 6 of schedule 1 of the 2012 Regulations continues to have effect on and after 1 April 2022, for the purposes of regulation 100, as it did immediately before that date.

Consequential amendments

102

The amendments in schedule5 have effect.

Revocations

103

Schedule6 (revocations) has effect.

SCHEDULE 1 — Applicable amount

PART 1 — Personal Allowances

1

(1) The amount specified in column (2) below in respect of each person or couple specified in column (1) (or where a person falls within two categories in column (1), the higher of those amounts) is the amount specified for the purposes of regulation 35(a) (applicable amount)—

Column (1)	Column (2)
Person or couple	Amount
A single applicant aged under 25, where no child premium is included under regulation 35(b) and paragraph (2).	£72.90
A single applicant aged 25 or over, where no child premium is included under regulation 35(b) and paragraph (2).	£92.05
A lone parent.	£92.05
A single applicant who is entitled to main phase employment and support allowance or who has an award of universal credit and has limited capability for work under regulation 39(1) of the 2013 Regulations or limited capability for work and work-related activity under regulation 40(1) of the 2013 Regulations.	£92.05
A couple.	£144.65

(2) For the purposes of sub-paragraph (1) an applicant is entitled to main phase employment and support allowance if either of paragraphs 18 or 19 (components) is satisfied in relation to the applicant.

PART 2 — Children

2

The amount specified for the purposes of regulation 35(b) (the child premium) is £105.85 for each child or young person.

3

Where neither the applicant nor the applicant’s partner, nor the partners jointly, have an award of universal credit, the following additional amount is, or additional amounts are, to be included in the applicable amount in respect of each child or young person who is disabled for whom the applicant or the applicant’s partner is responsible and who is a member of the applicant’s household—

(a) the disabled child premium of £81.37 in respect of each—

(i) child or young person who is in receipt of disability living allowance, child disability payment , adult disability payment or personal independence payment or is no longer in receipt of such allowance or payment because the child or young person is a patient, provided that the child or young person continues to be a member of the family, or

(ii) child or young person who is blind or treated as blind by virtue of paragraph 12(2) (disability premium), or

(iii) child or young person in respect of whom section 145A of the 1992 Act (entitlement after death of child or qualifying young person)[^f00230] applies for the purposes of entitlement to child benefit, and in respect of whom a disabled child premium was included in the applicant’s applicable amount immediately before the death of that child or young person, but the amount is to be included only for the period of entitlement prescribed under that section, and

(b) the disabled child premium of £81.37 and the enhanced disability premium of £32.75 in respect of each—

(i) child or young person who is entitled to the care component of disability living allowance at the highest rate, or would be so entitled, but for a suspension of benefit in accordance with Regulations made under section 113(2) of the 1992 Act or an abatement as a consequence of hospitalisation,

(ii) child or young person who is entitled to the care component of child disability payment at the highest rate...

(iii) child or young person who is entitled to the daily living component of personal independence payment at the enhanced rate, or would be so entitled, but for a suspension of benefit in accordance with Regulations made under section 86(1) of the 2012 Act or an abatement as a consequence of hospitalisation,

(iiia) a young person who is entitled to the daily living component of adult disability payment at the enhanced rate,

(iv) young person who is in receipt of armed forces independence payment, or

(v) child or young person in respect of whom section 145A of the 1992 Act applies for the purposes of entitlement to child benefit, and in respect of whom both the disabled child premium and the enhanced disability premium were included in the applicant’s applicable amount immediately before the death of that child or young person, but the amounts are to be included only for the period of entitlement prescribed under that section.

4

Subject to paragraphs 4C and 4D, where the applicant or the applicant’s partner (or the couple jointly) has an award of universal credit that includes an amount under regulation 24(2) of the 2013 Regulations (additional amount in respect of a child or qualifying young person who is disabled)[^f00232], an additional amount is to be included in the applicable amount in respect of each child or young person in respect of whom the amount under that regulation is payable and the additional amount is—

(a) the disabled child premium of £81.37, where the amount under that regulation is paid in respect of a child or young person at the lower rate described in paragraph (2)(a) of that regulation, and

(b) the disabled child premium of £81.37 and the enhanced disability premium of £32.75, where the amount under that regulation is paid in respect of a child or young person at the higher rate described in paragraph (2)(b) of that regulation.

PART 3 — Carer Premium

5

(1) Subject to sub-paragraphs (2) to (9), the amount specified for the purposes of regulation 35(d) (the carer premium), is £46.40.

(2) The applicable amount is to include the carer premium specified in sub-paragraph (1) where an applicant or the applicant’s partner has regular and substantial caring responsibilities for a severely disabled person, but subject to sub-paragraphs (3) and (4).

(3) In the case of a couple, the carer premium is payable in respect of each partner if they both qualify for it, but only if they are not caring for the same severely disabled person.

(4) Where two or more persons have regular and substantial caring responsibilities for the same severely disabled person, the carer premium is only payable in respect of one of them and that is—

(a) the one whose award of universal credit includes the carer element described in regulation 29 of the 2013 Regulations[^f00233],

(b) the one in receipt of a carer’s allowance or carer support payment in respect of the severely disabled person, or

(c) the one who would be in receipt of a carer’s allowance or carer support payment in respect of the severely disabled person were it not for the application of the Social Security (Overlapping Benefits) Regulations 1979 or, as the case may be, regulation 16(2) of the Carer’s Allowance (Carer Support Payment) (Scotland) Regulations 2023 [^f00234].

(5) Where a carer premium is awarded to a person whose award of universal credit includes the carer element described in regulation 29 of the 2013 Regulations, the condition for the award of the premium is to be treated as satisfied for as long as that carer element continues to be paid (for example, following the death of the severely disabled person) or, if longer, the period for which the person continues to be entitled to carer support payment.

(6) Where a carer premium is awarded to a person other than a person described in sub-paragraph (5), but—

(a) the person in respect of whose care the carer’s allowance ... has been awarded dies, or

(b) in any other case the person in respect of whom a carer premium has been awarded ceases to be entitled to a carer’s allowance or carer support payment,

the condition for the award of the premium is to be treated as satisfied for a period of 8 weeks from the relevant date specified in sub-paragraph (7).

(6A) Where a carer premium is awarded to a person other than a person described in sub-paragraph (5), but the person in respect of whose care the carer support payment has been awarded dies, the condition for the award of the premium is to be treated as satisfied for a period of—

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