Part of: UK Council Tax 2026 — Complete Guide → Council Tax Arrears 2026
TL;DR: Council Tax debts can be written off in specific circumstances. Section 13A of the Local Government Finance Act 1992 gives billing councils discretion to remit (cancel) debts in genuine hardship. Debts can also be included in bankruptcy, a Debt Relief Order, or an Individual Voluntary Arrangement. Time-barred debts over 6 years old (under the Limitation Act 1980) may be unenforceable. Contact a free debt advice charity to assess which route applies.
Last reviewed: 27 April 2026
The Section 13A Discretionary Write-Off
Section 13A of the Local Government Finance Act 1992 gives billing councils absolute discretion to reduce or remit (cancel) any Council Tax liability where they are satisfied that payment would cause genuine hardship. This applies to both current-year liabilities and accumulated arrears.
This is not an entitlement: The billing council is not required to write off debts. The discretion is theirs. However, most billing councils have published policies describing when they will consider a section 13A application, and many grant write-offs where the hardship evidence is clear and compelling.
Circumstances where section 13A write-off applications are most likely to succeed:
- Terminal illness or severe health condition making employment or income recovery unrealistic
- Prolonged unemployment with documented barriers to finding work
- Bereavement-related income collapse
- Documented severe mental health crisis
- Debts below the council's published minimum recovery threshold (often £50 to £100 - recovery costs would exceed the debt value)
How to apply: Submit a written request to the billing council's revenues team citing section 13A of the Local Government Finance Act 1992. Include supporting evidence: medical documentation, evidence of income, evidence of hardship. Address to a senior debt recovery officer or head of revenues.
Processing time: Billing councils typically complete section 13A assessments within 4 to 8 weeks.
Formal Debt Solutions Including Council Tax
Where Council Tax arrears are part of a larger, unmanageable debt position, formal debt solutions can clear the arrears as part of a structured resolution:
Bankruptcy: Council Tax debts are unsecured debts under the Insolvency Act 1986 and are included in bankruptcy. After the bankruptcy discharge period (typically 12 months), included debts - including Council Tax arrears from before the bankruptcy date - are written off. Future Council Tax continues to accrue and must be paid. Bankruptcy has significant consequences for assets and certain professions.
Individual Voluntary Arrangement (IVA): A formal insolvency arrangement agreed between the debtor and creditors representing at least 75% of the debt value. Council Tax arrears can be included in the IVA pool and are typically settled at a percentage of the original amount (often 30 to 60%). The billing council is treated as a creditor and typically votes with other creditors. IVAs typically run 5 to 6 years.
Debt Relief Order (DRO): Available where total debts do not exceed £50,000, assets do not exceed £2,000, and monthly surplus income is below £75. Council Tax arrears can be included. After 12 months of the DRO without improvement in circumstances, all included debts are written off. DROs are administered by the Insolvency Service and cost £90 to apply.
The Time-Bar Route Under the Limitation Act 1980
Under section 9 of the Limitation Act 1980, simple contract debts (which include Council Tax) are time-barred after 6 years from the date they became payable. A billing council cannot enforce a time-barred debt.
The restart risk: Any written acknowledgement of the debt, or any payment (even partial), restarts the 6-year limitation clock from that date under section 29 of the Limitation Act 1980.
Before making any payment on an old debt: Seek debt advice to establish whether the 6-year period has already run and whether any acknowledgement or payment would inadvertently restart the clock.
How to use the time-bar: If a billing council attempts to enforce a debt more than 6 years old (and without any acknowledgement or payment within that period), you can raise the Limitation Act 1980 as a defence at the summons stage (in writing to the magistrates court) or at any bailiff action stage (written notice to the billing council).
Council Write-Off Policies
Most billing councils maintain internal policies on when they will write off debts without a formal section 13A application. Common automatic write-off thresholds:
- Debts below £50 (cost of recovery exceeds the debt value in most cases)
- Debts where the debtor has died and the estate is insolvent with no recoverable assets
- Debts confirmed as time-barred under the Limitation Act 1980
These write-offs happen administratively without the debtor needing to apply. Where a debt is significantly larger, a formal application is typically required.
The Practical Difference Between Write-Off and Time-Bar
Two mechanisms can make a Council Tax debt unenforceable or cancelled, but they work differently:
Section 13A write-off: The billing council exercises discretion and cancels the debt. The debt was valid; the council chose not to collect it. This requires an application and the council's agreement.
Limitation Act 1980 time-bar: After 6 years without acknowledgement or payment, the debt is no longer legally enforceable in court. The debt still technically exists, but the council has no legal mechanism to compel payment. No application is needed - but the time-bar must be asserted as a defence if the council attempts enforcement.
In practice, many old debts are written off administratively by billing councils once they determine recovery is not cost-effective - separate from both section 13A and the formal limitation analysis.
IVA Creditor Approval
For an IVA to proceed, creditors representing at least 75% of the total debt value must vote in favour of the arrangement. For a debtor whose largest debt is Council Tax, the billing council's vote carries significant weight.
Billing councils' approach to IVA votes varies. Some consistently vote against IVAs for Council Tax debts (preferring direct enforcement), while others will approve a realistic IVA where it produces a better recovery than bankruptcy or enforcement would.
An insolvency practitioner managing an IVA can advise on the specific billing council's likely approach before the proposal is put to creditors.
The DMP vs Write-Off Distinction
A Debt Management Plan (DMP) administered by a debt charity (StepChange, Christians Against Poverty) reduces monthly payments and often freezes interest or charges - but the debt remains owed in full and is paid down over time. A write-off, by contrast, cancels the debt entirely.
The two routes are appropriate for different circumstances:
- DMP: manageable debt that needs restructured payment terms
- Write-off: debt that is genuinely uncollectable or where hardship makes payment impossible
Frequently Asked Questions
My debt is 5 years old and I haven't paid anything or acknowledged it - will it be written off automatically at 6 years?
Not automatically. The 6-year limitation under the Limitation Act 1980 becomes a defence you must actively raise if the billing council attempts enforcement. The debt does not disappear - but you have a legal defence to enforcement after 6 years of no acknowledgement or payment. Seek debt advice before the 6-year point to understand your position.
I've been declared bankrupt - does this cancel my Council Tax debt?
Council Tax debts from before your bankruptcy date are included in the bankruptcy and are written off on discharge (typically 12 months after the bankruptcy order). Council Tax continuing to accrue after the bankruptcy date is not included and must be paid. If you have Council Tax arrears dating from before and after the bankruptcy date, the situation needs careful advice from an insolvency practitioner or debt charity.
The billing council said my Council Tax arrears are too large to write off under section 13A - can I formally challenge this decision?
There is no statutory right of appeal against a section 13A discretionary decision. However, if you believe the billing council has not properly considered the full discretion available to it, or has rejected your application without providing adequate reasons for the refusal, you can escalate to the council's internal complaints procedure and, if unresolved, to the Local Government and Social Care Ombudsman on grounds of maladministration.
Can I get a partial write-off of my Council Tax arrears rather than a full one?
Yes. Section 13A of the Local Government Finance Act 1992 allows billing councils to reduce the Council Tax liability by any amount - full remission is not the only option. A partial write-off (for example, cancelling half the accumulated arrears while expecting payment of the remainder over time) is within the council's discretion. Apply for a partial write-off if a full one is unlikely to be granted.
A family member has recently died and left Council Tax arrears - am I personally responsible for paying these arrears?
Council Tax debts are personal debts of the liable person (the deceased). They may be a claim against the estate (from assets the deceased owned). You are not personally liable for the deceased's Council Tax unless you were jointly and severally liable during the debt period. If the estate is insolvent (liabilities exceed assets), the Council Tax debt may simply be uncollectable. Contact the billing council to notify them of the death.
How we verified this
Section 13A write-off discretion is from the Local Government Finance Act 1992. The Limitation Act 1980 (sections 9 and 29) provides the time-bar and acknowledgement restart rules. Bankruptcy, IVA, and DRO frameworks are from the Insolvency Act 1986 and associated Insolvency Service guidance. DRO thresholds (£50,000 debts, £2,000 assets) reflect 2024 legislative reform. MHCLG guidance covers billing council write-off policies. Citizens Advice and StepChange provide practical guidance.
Sources & Verification
- Local Government Finance Act 1992 (s13A): https://www.legislation.gov.uk/ukpga/1992/14/contents
- Limitation Act 1980 (s9, s29): https://www.legislation.gov.uk/ukpga/1980/58/contents
- Insolvency Act 1986: https://www.legislation.gov.uk/ukpga/1986/45/contents
- Council Tax (Administration and Enforcement) Regulations 1992: https://www.legislation.gov.uk/uksi/1992/613/contents
- Citizens Advice debt help: https://www.citizensadvice.org.uk/debt-and-money/
- StepChange Debt Charity: https://www.stepchange.org/
- MHCLG Council Tax guidance: https://www.gov.uk/government/collections/council-tax-statistics
- IRRV (Institute of Revenues, Rating and Valuation): https://www.irrv.net/
This article is for informational purposes only and does not constitute legal, financial, or tax advice. Council Tax rules vary by local authority and change annually. Always verify current rates and rules with your local council and gov.uk before making any decision.
