Council Tax Benefit/Support/Reduction/Discount

[technoguy]

Hello,

I am on WP + Tier 2 (ICT) eligible to apply for ILR by Mid-April. I was receiving a council tax discount of 10% of my rented property as my council give a discount, if the property is nobody’s main home. As my main home is in my home country India council themselves offered me this discount when I first registered with the council.

I was sure that this discount does not come under claiming public funds (No recourse to public funds). But now I am hearing so many terms like Council Tax Benefit, Support, Reduction, Discount etc. In the amended SET (O) form it is specifically mentioned that Council Tax Benefit and Council Tax Reduction. So my question is did the discount I have received on my council tax comes under Benefit or Reduction?

[Amber]

Hello,

I am on WP + Tier 2 (ICT) eligible to apply for ILR by Mid-April. I was receiving a council tax discount of 10% of my rented property as my council give a discount, if the property is nobody’s main home. As my main home is in my home country India council themselves offered me this discount when I first registered with the council.

I was sure that this discount does not come under claiming public funds (No recourse to public funds). But now I am hearing so many terms like Council Tax Benefit, Support, Reduction, Discount etc. In the amended SET (O) form it is specifically mentioned that Council Tax Benefit and Council Tax Reduction. So my question is did the discount I have received on my council tax comes under Benefit or Reduction?

This sounds like a council policy, a reduction is not a public fund. However, if your main home is in India why do you want to settle here?

[technoguy]

Hello,

I am on WP + Tier 2 (ICT) eligible to apply for ILR by Mid-April. I was receiving a council tax discount of 10% of my rented property as my council give a discount, if the property is nobody’s main home. As my main home is in my home country India council themselves offered me this discount when I first registered with the council.

I was sure that this discount does not come under claiming public funds (No recourse to public funds). But now I am hearing so many terms like Council Tax Benefit, Support, Reduction, Discount etc. In the amended SET (O) form it is specifically mentioned that Council Tax Benefit and Council Tax Reduction. So my question is did the discount I have received on my council tax comes under Benefit or Reduction?

This sounds like a council policy, a reduction is not a public fund. However, if your main home is in India why do you want to settle here?

Thanks for your reply. This was Leeds city council policy to give discount if this is not your permanent home also know as second home discount. Almost more all the people working with me on Tier 2 visa have that discount. This discount is some thing similar to other council offer 25% for single person. If you look at the new set (O) form a new point is also added for Council Tax Reduction along with Council Tax Benefit and both are classified under public funds.

[cs95tdg]

Looking at the latest SET(O) form it does appear that they have now categorised Council Tax Reduction (Discount) as a public fund. However, they do not appear to have amended the UKBA "Public Funds" guidance yet, to reflect this. I haven't read the immigration rules in detail to understand what is stated there now, but it would definitely be worth doing so (especially if you are currently claiming a council tax discount and are under a immigration category that does not give you access to public funds).

Note that, if it is confirmed as a public fund you should stop claiming the discount from the date the new definition of public funds came into effect. Any council tax discount you claimed prior to that date should not result a breach in the terms of your immigration status, IMHO.

http://www.ukba.homeoffice.gov.uk/sitec ... iew=Binary

You may find the following topic informative as well:
http://www.immigrationboards.com/viewtopic.php?p=817885

http://www.freemovement.org.uk/2013/04/ ... ion-rules/
HC1038
.....
At the time of writing, ILPA is seeking clarification on this issue as, on one hand, the UKBA have told ILPA that ‘The amendment does not relate to council tax discounts’ (eg, 25% discount if you live alone) whereas paragraph 7.3 of HC1038 states that ‘the new council tax reduction system in England will replace Council Tax Benefit from 1 April’. The concern expressed is that a person subject to immigration control currently able to enjoy 25% off their council tax bill may fall foul of the public funds prohibition if the 25% discount is included in the new definition of council tax reduction. This then is something to watch out for.

[Amber]

Looking at the latest SET(O) form it does appear that they have now categorised Council Tax Reduction (Discount) as a public fund. However, they do not appear to have amended the UKBA "Public Funds" guidance yet, to reflect this. I haven't read the immigration rules in detail to understand what is stated there now, but it would definitely be worth doing so (especially if you are currently claiming a council tax discount and are under a immigration category that does not give you access to public funds).

Note that, if it is confirmed as a public fund you should stop claiming the discount from the date the new definition of public funds came into effect. Any council tax discount you claimed prior to that date should not result a breach in the terms of your immigration status, IMHO.

http://www.ukba.homeoffice.gov.uk/sitec ... iew=Binary

You may find the following topic informative as well:
http://www.immigrationboards.com/viewtopic.php?p=817885

http://www.freemovement.org.uk/2013/04/ ... ion-rules/
HC1038
.....
At the time of writing, ILPA is seeking clarification on this issue as, on one hand, the UKBA have told ILPA that ‘The amendment does not relate to council tax discounts’ (eg, 25% discount if you live alone) whereas paragraph 7.3 of HC1038 states that ‘the new council tax reduction system in England will replace Council Tax Benefit from 1 April’. The concern expressed is that a person subject to immigration control currently able to enjoy 25% off their council tax bill may fall foul of the public funds prohibition if the 25% discount is included in the new definition of council tax reduction. This then is something to watch out for.

The fact that council tax benefit has changed it's name is the reason for the change in the application from. Nothing to do with discounts schemes already in place before April 2013

[technoguy]

Thanks guru cs95tdg. I have an appointment after 10 days and now with the inclusion of Council Tax Reduction along with Council Tax Benefit I am not sure what should I be filling in the application form. Now council tax benefit scheme has also stopped and being replaced by council tax reduction and my council calls it as council tax support. They have also stopped 10% discount for second home so it has stopped for me any ways from this year.

But it would be interesting know discounts like second home discount, single occupancy discount are classified under council tax reduction and how it may affect the application.

In the mean time I have dropped an email to my council seeking clarification if receiving council tax discount for second home is classified under claiming public funds. Though they are slow in responding and they may not respond in next few days when my appointment is due.

[cs95tdg]

The fact that council tax benefit has changed it's name is the reason for the change in the application from. Nothing to do with discounts schemes already in place before April 2013

I am not certain what the following precisely implies, but there are two seperate council tax related options under the section for public funds in the latest SET(O) form. To me it appears that benefits are classed seperately from discounts/reductions - this may be an error on their part:
Council Tax Benefit
Council Tax Reduction

[Amber]

The fact that council tax benefit has changed it's name is the reason for the change in the application from. Nothing to do with discounts schemes already in place before April 2013

I am not certain what the following precisely implies, but there are two seperate council tax related options under the section for public funds in the latest SET(O) form. To me it appears that benefits are classed seperately from discounts/reductions:
Council Tax Benefit
Council Tax Reduction

Council tax reduction relates to what is covered in The Council Tax Reduction Schemes (Default Scheme) (England) Regulations 2012 as apposed to council tax discounts, reliefs and exemptions which are entirely different. Council tax benefit is being replaced by the aforementioned reduction regulations. In the transitional period people can be claiming council tax reduction or council tax benefit as a public fund. The discount reliefs and exemptions I.e. students is entirely separate.

To be more clear, both council tax benefit and the new council tax reduction are means tested. The discounts and exemptions are not. The means tested components (for council tax) are what are considered public funds.

[cs95tdg]

The fact that council tax benefit has changed it's name is the reason for the change in the application from. Nothing to do with discounts schemes already in place before April 2013

I am not certain what the following precisely implies, but there are two seperate council tax related options under the section for public funds in the latest SET(O) form. To me it appears that benefits are classed seperately from discounts/reductions:
Council Tax Benefit
Council Tax Reduction

Council tax reduction relates to what is covered in The Council Tax Reduction Schemes (Default Scheme) (England) Regulations 2012 as apposed to council tax discounts, reliefs and exemptions which are entirely different. Council tax benefit is being replaced by the aforementioned reduction regulations. In the transitional period people can be claiming council tax reduction or council tax benefit as a public fund. The discount reliefs and exemptions I.e. students is entirely separate.

Thanks for the clarification. I see that they are independent. What was confusing was the distinction you have now made between "Discounts" and "Reductions" (which I took to be synonymous). I will need to do some further reading to clearly understand the implications.

[technoguy]

Thank you gurus for the discussion. I am also trying to find anything I could related to this.