Council tax is one of the major bills that homeowners and some renters have to pay. Council tax becomes increasingly expensive every year, and although some people are exempt (such as students) the reality is that most people must pay it either annually or monthly.
Within this Council Tax guide:
Council tax is collected by each local authority - the local level management teams who deal with administration in your community.
Council tax is levied on all domestic properties, and it varies in price considerably - all properties are valued at April 1991 prices.
For instance, if you live in a large property with lots of rooms and land, it is likely that you will pay more council tax than those living in a standard house. UK properties are 'banded' - divided into groups depending on several factors such as size and location, with each band linked to a set price.
Residential property in the UK is grouped into eight different Council Tax bands. Each local authority holds a list of all local domestic property, and each property is put into a certain valuation band. For each band, a certain amount of council tax is charged.
The current Council Tax bands are as follows:
In England:
Valuation Band |
Range of Values (Applicable to England only) |
---|---|
A
|
Up to £40,000 |
B
|
Over £40,000 - £52,000 |
C
|
Over £52,000 - £68,000 |
D
|
Over £68,000 - £88,000 |
E
|
Over £88,000 - £120,000 |
F
|
Over £120,000 - £160,000 |
G
|
Over £160,000 - £320,000 |
H
|
Over £320,000 |
In Scotland:
Valuation Band |
Range of Values (Applicable to Scotland only) |
---|---|
A
|
Up to £27,000 |
B
|
Over £27,000 - £35,000 |
C
|
Over £35,000 - £45,000 |
D
|
Over £45,000 - £58,000 |
E
|
Over £58,000 - £80,000 |
F
|
Over £80,000 - £106,000 |
G
|
Over £106,000 - £212,000 |
H
|
Over £212,000 |
Your council tax bill will show which valuation band your property falls into, or alternatively you can check with your local authority before you receive your first council tax bill.
Another useful link for those consumers wondering which council tax band their property falls into is www.voa.gov.uk.
Some properties are completely exempt from council tax. Exemption from council tax may be temporary – such as students living in the house, or more permanent. The reasons why a property may be exempt from council tax can include:
In Scotland, the legislation regarding council tax exemption is slightly different, and the following properties may be exempt:
Many people believe that they pay too much council tax, or that their property should be exempt. To find out whether your property could be exempt, contact your local authority of the Citizens Advice Bureau.
By law, the ‘liable person’ has to pay council tax for each property, although this is misleading, because in shared accommodation several people may be liable. For people under the age of 18, this does not apply.
Couples living together are both liable to pay, whether they are married, in cohabitation or living in a civil partnership. Although the liable person is usually whoever inhabits the property, in some instances it is the owner of the property who is liable.
This situation exists when:
Should there just be one person living in a property they will be the liable person. Should there be more than one person living at the property, the system is called the hierarchy of liability and is used to work out who is the liable person. The person at the top, or nearest the top, is the liable person. Two people who are at the same point of the hierarchy are both liable.
In England the hierarchy of liability, as defined by the Government, is as follows:
In Scotland, the hierarchy of liability is slightly different, and is defined by the government as:
The Council Tax rate is decided on every year by each local authority. The amount of council tax that you pay will depend on which valuation band your property falls into, and it is worth remembering that not everyone has to pay the full council tax amount.
The most common reasons for a discount in Council Tax are as follows:
The council tax bill for a property in which an adult or child lives with a sever disability may be reduced. In this instance, council tax can be reached by dropping the valuation bands to a lower level.
To demonstrate to the local authority that you are eligible for a council tax reduction, you need to show that the property meets the needs of the disabled person adequately.
To show this, your property may need:
To apply for a council tax reduction, the property owner or person who is eligible for council tax should send a letter to their local authority, or in some cases fill in a special application form. Some local authorities require additional supporting evidence.
If an adult lives alone in a property, hw or she will be given a 25 per cent discount on the council tax bill. However, even if a person does not live alone, the other people in the house may not be counted for council tax. These people are known as disregarded people, and this group includes:
The discounted rate of council tax should be clearly stated by the local authority on your council tax bill. If you believe that you are eligible for a discount, and your bill shows that you do not have one, you should apply to the local authority as soon as possible.
If you have a discount, but think you are not eligible, contact the local authority as soon as possible, as this will be considered your fault and could attract a fine at a later date.
Many people in England and Scotland own holiday homes, and although these are eligible for council tax, most attract a discount of between 10 and 50% due to lack of permanent habitation.
Some people liable to pay Council Tax may be eligible for council tax benefit. For instance, should you have someone living with you who does not have to pay council tax, you can claim something called ‘second adult rebate.’ Check the specifics of this with your local authority.
Bills for council tax are sent out every April, and it is possible to pay by 10 monthly instalments. Some local authorities accept weekly or fortnightly payments, and others will give a discount if the amount is paid in full.
Payment methods inlude: at your local bank, post office or paying online at your local authority's website.
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