Understanding the 'Severely Mentally Impaired' (SMI) Designation
For Council Tax purposes in the UK, a person is considered 'severely mentally impaired' if they have a permanent, severe impairment of intellectual and social functioning, regardless of the cause. A diagnosis of dementia is one of the conditions that can lead to an SMI designation, but it is not automatic. The designation is officially a medical diagnosis in its own right and must be certified by a registered medical practitioner, such as a GP.
What the SMI Criteria Involves
To be granted the SMI classification for Council Tax relief, two core criteria must be met:
- Medical Certification: A doctor or other medical professional must certify in writing that the individual has a severe, permanent impairment of intelligence and social functioning. Conditions commonly associated with this include Alzheimer's, other forms of dementia, Parkinson's disease, and learning disabilities.
- Qualifying Benefits: The individual must also be entitled to, though not necessarily in receipt of, one of a number of state benefits. These benefits indicate that the person's condition has already been assessed as severe for welfare purposes. They can include Attendance Allowance, Personal Independence Payment (standard or enhanced daily living component), Disability Living Allowance (middle or higher rate care component), and Universal Credit with the Limited Capability for Work element, among others.
The Application Process for the SMI Discount
The process of applying for the SMI discount for dementia can be done by a family member or carer. While the exact forms differ slightly between councils, the general procedure is consistent across England, Scotland, and Wales.
Steps to Claim the SMI Discount:
- Contact the Local Council: Obtain an application form for the 'Severely Mentally Impaired' Council Tax discount from the local authority's website or by phone.
- Complete the Applicant's Section: Fill in your personal details and the Council Tax account number.
- Obtain Medical Certification: Have a registered medical practitioner, such as the individual's GP, complete the medical section of the form. This is to certify the SMI status. GPs are not allowed to charge for this service.
- Provide Benefit Evidence: Gather proof of entitlement to the qualifying benefit, such as a recent benefits award letter.
- Submit the Application: Send the completed form and supporting evidence to the local council's tax department. The form can often be uploaded online or sent by post.
Potential Council Tax Discounts for People with Dementia
The level of Council Tax discount or exemption available depends on the number of adults in the household and their personal circumstances. Once an individual with dementia is medically certified as SMI and is entitled to a qualifying benefit, they are 'disregarded' for Council Tax calculation purposes.
| Household Composition | Council Tax Discount | Example | Eligibility Details |
|---|---|---|---|
| SMI individual living alone | 100% exemption | An individual with dementia lives alone. | The property is exempt, and no Council Tax is payable. |
| SMI individual with one non-SMI adult | 25% discount | A couple, where one partner has dementia and is SMI, and the other is a full Council Tax payer. | The SMI person is disregarded, and the remaining person qualifies for the single person's discount. |
| Two or more SMI individuals | 100% exemption | Two siblings with severe learning disabilities or advanced dementia living together. | All residents are disregarded, leading to a full exemption. |
| SMI individual with a live-in carer | Potential 50% discount | A person with dementia lives with their non-SMI adult child who provides 35+ hours of care per week. | The SMI individual is disregarded, and the carer may also be disregarded if they meet specific criteria, leading to a 50% discount. |
Common Pitfalls and How to Avoid Them
Applying for the SMI discount can be a complex process, and families often face challenges. Some common misunderstandings involve the eligibility criteria and the role of the GP. It is important to be proactive and understand the requirements fully before applying. Remember that the term SMI is a specific legal designation and not simply a general mental health diagnosis.
Documenting and Proving Eligibility
To prove eligibility, having proper documentation is key. This includes the medical certificate signed by a doctor and evidence of entitlement to one of the qualifying benefits. If the individual with dementia is of pensionable age, they might still qualify if they would have been entitled to a qualifying benefit had they been of working age. Some councils might confuse the SMI discount with other schemes like the Disabled Band Reduction, so being well-informed is crucial.
What if a Claim is Rejected?
If a local council rejects an SMI discount claim, it is possible to challenge the decision by appealing to the Valuation Tribunal. Families must appeal within two months of the council's decision. Evidence, such as a new medical report, may be required. While challenging a decision can be stressful, being prepared and having the right documentation increases the chances of a successful appeal.
Conclusion
Yes, dementia can and often does count as 'severely mentally impaired' for the purposes of the Council Tax discount in the UK, provided the individual meets the specific medical and benefits criteria. The designation is not automatic with a dementia diagnosis but requires formal certification from a medical professional and proof of entitlement to a qualifying benefit. Claiming this discount can provide vital financial relief for households supporting a person with dementia. Understanding the full criteria and the application process is key to navigating the system successfully and receiving the support that is available.
Dementia UK offers further information and support on Council Tax discounts for people with dementia and their families, including details on eligibility and how to apply.
