Part of: UK Council Tax 2026 — Complete Guide → Council Tax Exemptions 2026
TL;DR: When the sole resident of a property moves permanently into a care home or hospital providing personal care, the empty property qualifies for Class E Council Tax exemption - zero Council Tax for as long as they remain in care. Class E does not apply to respite care or temporary hospital stays. Notify the billing council with the admission letter and request backdating to the move-out date.
Last reviewed: 27 April 2026
What Class E Covers
Class E of the Council Tax (Exempt Dwellings) Order 1992 provides 100% Council Tax exemption for a property where:
- The property is empty (unoccupied)
- The property was previously the person's sole or main residence
- The person has moved into a care home, hospital, or other institution providing personal care
- The move is permanent (not a temporary or respite stay)
When all these conditions are met, no Council Tax is payable on the empty property for as long as the person remains in care. Unlike Class A or Class F, Class E has no time limit. It continues indefinitely while the qualifying conditions persist.
The "Permanent" Test: What It Means
The most important distinction for Class E is whether the care home move is permanent. Not every hospital or care facility stay qualifies:
Qualifies for Class E:
- Permanent residential care home placement (nursing home, residential care home)
- Long-term hospital placement for personal care (for example, long-term psychiatric ward admission)
- Permanent placement in a specialist disability residential unit
Does NOT qualify for Class E:
- Respite care (temporary stays at care facilities while the family or main carer takes a break)
- Short-term hospital admission (hip replacement, surgery recovery, acute illness)
- Convalescent stay (temporary post-hospital recovery)
- Trial care home placement that has not become permanent
The billing council makes a judgment about permanence based on the evidence provided. The admission letter from the care home, GP correspondence, and social services care plan are all relevant.
How to Apply for Class E
Step 1: Notify the billing council as soon as the person moves into the care home. Use the council's online form (search "Class E Council Tax exemption" or "care home exemption").
Step 2: Provide:
- The care home or hospital admission letter (showing the person's name, date of admission, facility name, and that the placement is for ongoing personal care)
- The property address
- Confirmation that the property is empty
Step 3: Request backdating to the exact date the person moved out of the property and it became empty.
Most billing councils process a complete Class E application within 14 to 28 working days of receiving the full required documentation.
The Joint Owner/Occupier Problem
Class E only applies when the property is empty. If the person in care had a co-occupier (spouse, partner, adult child), and that person continues to live at the property, Class E does NOT apply.
The occupied property scenario: The surviving spouse remains at the property. The property is occupied. No Class E. However, the remaining spouse is now the sole adult at the property. They are entitled to the Single Person Discount (25% off) from the date the person entered care. Apply for SPD immediately.
The spouse-in-care scenario: If both spouses end up in care and the property is empty, Class E applies from the date the last person moved out.
The Care Home Means-Testing Interaction
Two distinct financial mechanisms operate when a person enters a care home. They are separate from each other and should not be confused:
Council Tax Class E exemption: The empty former property is exempt from Council Tax. This is a local taxation matter.
Care home means-testing under the Care Act 2014: The local authority assesses how much the person must contribute to their care costs. The 12-week property disregard under the Care Act 2014 means the value of the former home is excluded from the means-test capital assessment for the first 12 weeks of the care placement. After 12 weeks, the property value may count toward the capital calculation.
These two mechanisms (Council Tax exemption and care home means-testing) run concurrently but independently. The Council Tax exemption applies regardless of the funding position.
Local Authority Arranged Care vs Self-Funded Care
Whether a person's care home placement is funded by the local authority or self-funded has no direct effect on Class E Council Tax exemption. Class E applies to the empty property regardless of who pays for the care:
Local authority funded placement: The council pays the care home fees (after means-testing). The person has below the capital threshold (currently £23,250 in England for 2026-27). Class E still applies to the empty former home.
Self-funded placement: The person pays their own care home fees from savings, investments, or property income. Class E still applies to the empty former home. A deferred payment agreement with the council (where the council pays and registers a charge on the property) also leaves Class E in place.
The property value and care funding interaction: While the empty property is subject to Class E Council Tax exemption (local taxation), its value may affect the means-test for care funding (social care). These are separate calculations handled by different parts of the council. The Council Tax exemption team and the adult social care team operate independently.
The 12-week property disregard (Care Act 2014): During the first 12 weeks of a care placement, the former home's value is excluded from the means-test for care funding. After 12 weeks, the property value may count toward the capital threshold assessment. This is entirely separate from Class E and does not affect Council Tax.
The Deferred Payment Agreement and Class E
Under the Care Act 2014, local authorities can offer a Deferred Payment Agreement (DPA). Under a DPA, the council meets the person's care costs and registers a legal charge against their property, to be repaid when the property is eventually sold.
During a DPA period, the person remains the property owner (the council holds a charge, not ownership). The property remains empty and subject to Class E exemption. The DPA and Class E run simultaneously.
What Happens on Death
When the person in care dies:
1. Class E ends on the date of death.
2. The estate becomes responsible for the property.
3. Class F begins when the grant of probate or letters of administration is issued.
4. Class F runs for 6 months from the grant date.
5. After Class F expires, full Council Tax resumes.
Notify the billing council promptly on death. Provide the death certificate initially, then the grant of probate when issued.
Frequently Asked Questions
My mother is in respite care for 6 weeks - does Class E apply?
No. Class E requires a permanent move into care. A 6-week respite stay is temporary. Your mother's property remains subject to Council Tax as an empty property during this period. However, if your mother is typically the sole occupant and is away, the property may qualify for a short-term empty discount or standard empty rate depending on your council's policy.
My father is in hospital for a long-term psychiatric admission - does Class E apply?
Potentially yes. Long-term hospital admission for personal care can qualify for Class E - the exemption is not limited to care homes. Provide the hospital's letter confirming the admission and that it is for ongoing personal care. If the treating team expects the admission to be long-term or permanent, this supports the Class E application.
We haven't applied for Class E and our mother has been in a care home for 3 years - can we get a refund for that period?
Yes. Class E can be backdated to the date the qualifying conditions were first met, which is when your mother moved into the care home and the property became empty. Contact the billing council, provide the care home admission letter showing the date of admission, explain the late application, and request backdating for the full period. The billing council will calculate the overpayment and issue a refund or credit to your account.
My wife entered a care home but I still live in our house - does anything change?
Your wife's portion of the property is not relevant for Class E because the property is occupied (by you). You are now the sole adult at the property and qualify for the Single Person Discount (25% off) from the date your wife moved into care. Apply for SPD immediately. Council Tax continues at the 75% SPD rate.
The property is empty but we're planning to rent it out - what happens to Class E?
Class E ends when the property ceases to be empty. If you let the property, the tenant becomes the liable person from the tenancy start date. Notify the billing council of the tenancy start date when it begins. Council Tax resumes (as the tenant's liability) from that date.
How we verified this
Class E eligibility and the "permanent" requirement are from the Council Tax (Exempt Dwellings) Order 1992. The 12-week property disregard and Deferred Payment Agreement are from the Care Act 2014. Class F timing (6 months from grant of probate) is from the same Exempt Dwellings Order. The Single Person Discount for surviving spouses is from section 11 of the Local Government Finance Act 1992. MHCLG guidance covers Class E administration. The IRRV provides professional guidance to billing councils on care home Council Tax exemptions.
Sources & Verification
- Council Tax (Exempt Dwellings) Order 1992 (Class E): https://www.legislation.gov.uk/uksi/1992/558/contents
- Care Act 2014 (12-week disregard, deferred payment): https://www.legislation.gov.uk/ukpga/2014/23/contents
- Local Government Finance Act 1992: https://www.legislation.gov.uk/ukpga/1992/14/contents
- Department of Health and Social Care guidance: https://www.gov.uk/guidance/care-and-support-statutory-guidance
- gov.uk Council Tax exemptions: https://www.gov.uk/council-tax/who-doesnt-pay
- 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.
