header-logo header-logo

New Law Journal | The leading weekly legal magazine

Home Login E-newsletter About us
Latest
Opinion
24 September 2025
Issue: 8132 / Categories: Legal News , Human rights , Tax , Local authority , Discrimination
printer mail-detail

Tax scheme was irrational & discriminatory, court rules

A local authority council tax scheme ‘double counted’ a disability pension and carer’s allowance, the High Court has held

R (on the application of LL & AU) v Trafford Metropolitan Borough Council [2025] EWHC 2380 (Admin) concerned Trafford Council’s working age local council tax reduction scheme for the current tax year. Claimants LL and AU previously received a 100% reduction on their council tax, but in March they were each billed for the full amount.

They argued, first, the scheme was unlawfully adopted as the decision was taken by the executive committee rather than the full council. Second, its design was discriminatory since the means test ‘double counted’ certain benefits and pensions. LL’s private occupational pension and AU’s carer’s allowance reduced their actual income from universal credit but increased their deemed income under Trafford Council’s system.

Trafford Council accepted their system had flaws but attributed this to the software it used. While it had requested an amendment to the software, it was dealing with the issue by granting discretionary relief where necessary.

The claimants rejected the argument that only the software was flawed, and contended the issues were inherent in the scheme itself. Moreover, many residents were at risk of discretionary relief being denied.

Quashing the scheme and ordering the claimants be compensated, Judge Pearce said: ‘A scheme which requires the exercise of discretionary support is not sufficient to rescue it from a finding of irrationality.’

Judge Pearce noted that, to receive discretionary support, ‘a person has to make application to a potentially limited fund that makes usually short-term award payments and from which application there is no right of appeal’.

Carolin Ott, senior associate at Leigh Day, representing the claimants, said: ‘The council must go back to the drawing board and ensure that a lawful and fair scheme is put in place.’

FEATURES
David Burrows considers when costs can be limited or capped in family proceedings appeals
Old rules, modern conflict—time to change approach? Roger Smith doesn’t think so
Was the promise actually delivered? Robert Hargreaves & Lily Johnston explain why employers must act now
Marie Law, Director of Toxicology at AlphaBiolabs, examines the role of cut-off levels, and the wider range of factors that must be considered when interpreting results for family court proceedings
Chris Bryden and Josh Stamp-Simon assess the potential inheritance rights of those in throuples, poly quads and other polyamorous relationships
Post the N1; CPR PD 195th update; Standard family orders change; Old admission withdrawals; Credit hire impecuniosity.
Rachel Fisher explores how globalisation is reshaping family law
Jennifer Fox explains Rule 7A, a powerful rule change with big consequences for fraud and asset tracing
Behind the polished exterior, many lawyers are running on empty: Annmarie Carvalho weighs up the emotional cost of legal practice
Discover how legal market intelligence builds on rankings, using legal data insights and analytics to drive smarter strategy, growth and competitive advantage
View All

MOVERS & SHAKERS

DAC Beachcroft—Paul Brehony

DAC Beachcroft—Paul Brehony

Commercial disputes practice expands with partner hire in London

Ward Hadaway—Maria Coster

Ward Hadaway—Maria Coster

Partner appointed to lead family and matrimonial department in Leeds

Slater Heelis—Helen Marsh

Slater Heelis—Helen Marsh

Commercial property team expands in Manchester with partner appointment

Meet our legal trainees
NEWS
Financial protections for domestic abuse victims would be strengthened and cohabiting couples be given inheritance and separation rights, under historic government proposals
Doctors and nurses could be sued for mistakes made by the artificial intelligence (AI) equipment they use to treat patients, researchers have warned
The law sector has been chosen as the testing ground for the government’s AI Growth Labs—speeding up development, testing and regulatory compliance so software can be market-ready more quickly
A range of options beyond burial, cremation and burial at sea could become legally available, under Law Commission recommendations
Artificial intelligence (AI) legal assistants will be deployed to cut delays in the Crown Court, ministers have announced
MOST READ
  • Mental health charities have reacted with alarm after Cheshire West, which established an ‘acid test’ for deprivation of liberty safeguards, was overturned by the Supreme Court

  • The Chancery Division and other segments of the High Court are to be replaced by a new Business and Property Division (BPD), in a major civil justice shakeup
  • Law firms that hold client money will need to file annual accountants’ reports and make a declaration, the Solicitors Regulation Authority (SRA) confirmed this week
  • Firm strengthens investigations and sanctions capabilities with London partner hire
  • Artificial intelligence, proportionality & purpose are under the spotlight in the latest round-up by the team at Herbert Smith Freehills Kramer

back-to-top-scroll