Can council tax debt be written off?
Council tax arrears can be written off, but only in a few specific ways. More often, the debt can be reduced, sometimes substantially, by claiming help you should have had. Here is what works.
In short
- A Debt Relief Order writes off council tax arrears after 12 months, if you owe up to £50,000 and have very little spare money. It is free.
- Bankruptcy writes off council tax arrears from before the order, usually after 12 months. It costs £680.
- Your council can reduce or cancel anyone's council tax under its hardship powers, but it does not have to.
- Backdated discounts and exemptions can cut arrears, sometimes to nothing.
- Once a liability order is made, there is no time limit on collecting it. The debt does not simply expire.
“Can my council tax debt be written off?” is one of the most common questions we hear. The honest answer is that it can, but usually only through a formal debt solution or your council’s own discretion. The more common, and often better, result is getting the debt reduced.
Ways council tax debt can be written off
A Debt Relief Order
A Debt Relief Order, or DRO, writes off qualifying debts, including council tax arrears, after 12 months. You may qualify if you:
- Owe £50,000 or less in total
- Have £75 a month or less left after essential costs
- Have savings and valuables worth £2,000 or less, not counting one car worth under £4,000
- Do not own your home
It has been free to apply since April 2024. You apply through an approved debt adviser. This year’s council tax is not included, so you keep paying it.
Quick check
Could a Debt Relief Order work for you?
Rough figures are fine. Nothing you type here is sent anywhere.
Council tax arrears, cards, loans, overdrafts, bills. Not your mortgage.
Not ordinary household things, and not your car. That is the next question.
Put 0 if you do not have one.
After rent, this year’s council tax, energy, food, travel and other essentials.
On these figures
You may qualify
- Debts no more than £50,000Yes
- Savings and valuables no more than £2,000Yes
- Any car worth under £4,000Yes
- £75 a month or less left overYes
- You do not own a homeYes
- No DRO in the last 6 yearsYes
Your figures are inside every limit. An approved adviser checks them properly, and it costs nothing to apply.
A rough guide only. There are other tests too, such as having lived or worked in England or Wales in the last 3 years. A car adapted for a disability can be allowed even if it is worth more.
Want an adviser to check it properly?
Get free helpBankruptcy
Bankruptcy writes off most debts, including council tax arrears for the time before the bankruptcy order, usually after 12 months. It costs £680 and has serious consequences, including for any home you own. It is usually a last resort.
An IVA
An individual voluntary arrangement writes off whatever is left of the included debts at the end, usually after five years. Councils often vote against IVAs where council tax is most of the debt.
Your council’s discretion
Councils in England and Wales can reduce or cancel anyone’s council tax, by any amount, under section 13A of the Local Government Finance Act 1992. Many run a hardship fund using this power.
It is discretionary, so there is no automatic right to it. But if you are in genuine hardship, it is always worth asking in writing, and explaining why. Councils are more likely to help where there is serious illness, disability, bereavement, or where Council Tax Reduction does not cover the bill.
Ways council tax debt can be reduced
This is often where the biggest wins are.
- Backdated discounts and exemptions. If you should have had a discount, such as the single person discount, or an exemption, such as the severe mental impairment disregard for someone with dementia, it can often be backdated, in some cases for years. See discounts and exemptions.
- Council Tax Reduction for people on low incomes, backdated where your council’s scheme allows. See Council Tax Reduction.
- The wrong person being billed, or the wrong band. See who has to pay and bands and valuation.
- Bailiff fees charged wrongly, which can be removed. See bailiff fees explained.
Does council tax debt expire?
Not in the way people hope.
- Your council has six years from when the council tax fell due to get a liability order. It is rare for a council to miss this.
- Once a liability order has been made, there is no time limit for enforcing it. Bailiffs, deductions from wages or benefits, and the other methods can be used years later.
What does not make it go away
- Ignoring it. Fees and costs are added at each stage.
- Moving house. The debt follows you, and councils trace people.
- Bailiffs finding nothing to take. The case goes back to the council, which uses other methods. See what happens if bailiffs have nothing to take.
- Paying a company to “write it off”. No one can write off council tax except your council, the court, or a formal insolvency procedure.
If someone has died
Council tax owed by someone who has died is paid from their estate, if there is enough money in it. It is not usually passed to family members, unless they were also liable for the bill. See empty properties for the exemptions after a death.
In Scotland
In Scotland, a Minimal Asset Process bankruptcy or a protected trust deed can deal with council tax arrears. See the Scotland section, or our sister service:
Where are you with your council tax?
Choose the one that fits best and an adviser will call you back. Free, confidential, and no obligation.
- I have had a reminder or a final notice A letter from the council, but no court involvement yet
- I have had a court summons A hearing date at the magistrates court
- A liability order has been made The court has granted the council recovery powers
- Enforcement agents have contacted me A letter or a visit from a bailiff firm
- Money is being taken from my wages or benefits An attachment of earnings or a benefit deduction
- I am not sure, or something else
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