What is Council Tax?
Want to get clued-up on Council Tax? We'll walk you Council Tax Bands, exemptions, payment methods and everything in between.
Key points
Council Tax funds essential services, such as education, waste management, and police through charges on domestic properties
Payment responsibilities generally fall on adults over 18 residing in the property as their main home, with certain exemptions for students, those with severe mental impairments, and long-term hospital patients
The amount of Council Tax owed is determined by property bands ranging from A to H, influenced by property valuation and local council rates
You can pay your Council Tax by direct debit, online or in-person
What is Council Tax?
Council Tax is a system of local taxation charged on domestic properties to fund local government services, such as education, waste management, and the police.
By paying Council Tax, residents ensure their community maintains essential services. These services improve quality of life and uphold public safety.
Who has to pay Council Tax?
Council Tax is typically paid by adults who own or rent homes and generally applies to residents over 18 who live in a property as their main home.
However, there are exceptions to this rule. For example, properties solely occupied by full-time students are exempt from Council Tax.
Additionally, adults with severe mental impairments and long-term hospital patients do not have to pay.
How much Council Tax will I have to pay?
The amount of Council Tax you owe depends on your home's property band. These bands, from A to H, are set by property valuation at a specific time. Homes in higher bands incur larger Council Tax bills.
Additionally, local council rates significantly impact your tax bill. Each local authority sets its own rate based on budgetary needs and services provided.
Your Council Tax can also vary greatly depending on your location.
What are the different Council Tax bands?
Council Tax bands categorise UK properties by value. Each band represents a property value range, determining the council Tax payable. Here's an overview of each band and the criteria for assignment:
Band A: Includes properties valued up to £40,000, typically smaller or less expensive homes
Band B: Covers homes valued between £40,001 and £52,000, usually modest houses with reasonable space
Band C: Properties in this band are valued between £52,001 and £68,000, often family homes in suburban areas
Band D: This median band includes homes valued between £68,001 and £88,000, serving as a benchmark for average-sized homes
Band E: Properties valued between £88,001 and £120,000 are in this band, typically larger homes with extra features like land or garages
Band F: Homes in this band, valued between £120,001 and £160,000, are often larger family homes with significant amenities
Band G: Includes properties valued between £160,001 and £320,000, usually substantial properties in desirable areas
Band H: The highest band, for properties valued over £320,000, includes luxury homes and large estates
The valuation of a property, determining its Council Tax band, is based on the market value as of April 1, 1991, for England and Scotland, and April 1, 2003, for Wales.
If a property has undergone significant changes since the valuation date, such as extensions or conversions, the band may be reassessed.
How do I pay Council Tax?
Perhaps the most straightforward way to pay your Council Tax by setting up a direct debit. This allows your local council to automatically withdraw the due amount from your bank account, typically on a monthly basis.
Alternatively, you can make payments online via your local council's website. There, you can also check your balance and view upcoming due dates.
For those who prefer physical payment methods, options are available. You can pay by cheque or cash at designated local council offices or authorised payment points, such as post offices.
What happens if I can't afford my Council Tax?
If you're struggling to meet your Council Tax payments, several options are available to help you avoid legal issues. We take a look at them below...
Contact your local council immediately: If you foresee difficulties in paying your Council Tax, contact your local council promptly. They often have payment plans that spread the cost over time, making it more manageable
Seek advice on Council Tax support: Many councils offer support schemes for those with low incomes or financial hardships. Eligibility varies, so check with your local council for details
Check for discounts or exemptions: You may qualify for discounts or exemptions based on your situation. This could be due to living alone, being a student, or receiving certain benefits
Consider debt advice services: Free debt advice services can provide guidance on managing Council Tax debts and other financial obligations. Organisations like Citizens Advice and StepChange offer confidential advice
Understand the legal implications: Not paying your Council Tax can lead to legal actions, including court summons and extra costs. In extreme cases, it might result in bailiff action or imprisonment
When do I not have to pay Council Tax?
Certain situations exempt individuals from paying Council Tax, based on property status or occupant circumstances.
For example, if a property is unoccupied because the resident is in prison or has moved for hospital or care home treatment, you're not required to pay Council Tax. Properties occupied solely by full-time students are also exempt.
To apply for an exemption, you must notify your local council with proof of eligibility. This could include a student certificate or a medical professional’s statement.
Each council has its own procedure, so it is essential to contact them directly or visit their website for specific application guidance.
Can I get a discount or reduction on my Council Tax?
The answer is yes, under certain conditions. Various discounts and reductions are available, depending on your circumstances.
For instance, living alone could qualify you for a single person discount. This typically reduces your bill by 25%.
Students may apply for a student exemption. This might exempt them entirely from paying Council Tax if all residents of a dwelling are full-time students.
To apply for a council Tax discount, contact your local council. They will require proof of your eligibility, such as a tenancy agreement or a student status letter from your university.
The process is straightforward: fill out the necessary forms provided by your council and submit them along with any required documentation.
Your council will review your application and inform you if you qualify for a discount or exemption.