Depends on your local council. We were told as we were posted to Germany that we could have a 50% discount as the house was to stand empty in our absence. This was by Richmondshire District Council in North Yorks. On our return, they told us that we were only entitled to a 10% discount and that we owed them money. This was despite us producing their earlier letter to them. The answer we got was, had we been posted elsewhere in UK, we would have been entitled to a 50% discount on the council tax for our house, but as we were posted to Germany we were only entitled to a 10% discount.
We explained CILOCT but that fell upon deaf and uninterested ears. It is my belief that they are aware that you recieve LOA when abroad and as such they reckon that you can afford to pay both CILOCT and 90% council tax.
To add insult, they helped themselves to the total amount they said we owed them by going straight into our direct debit. We had been paying our council tax that way previously. We don't now.
We've taken the matter to our local MP William Hague who has sent it on the Bliar and is mates.