What is council tax and how is it calculated?

What does it pay for?

Council tax helps fund local services including:

• Schools and education - Local schools and educational services
• Roads and transport - Maintaining roads, street lighting, public transport
• Rubbish collection - Bin collections and recycling services
• Libraries and leisure - Public libraries, parks, leisure centres
• Social care - Care for elderly and vulnerable people
• Police and fire services - Part of your council tax goes to these
• Planning and housing - Local planning and housing services

The exact services vary by area, but these are the main things your council tax funds.

How is it calculated?

Council tax is calculated using:

1. Property band - Your property is placed in a band (A to H) based on its value in 1991
2. Band rate - Each council sets a rate for each band
3. Number of adults - Full council tax is based on 2+ adults living in the property
4. Discounts and exemptions - These can reduce or eliminate your bill

The council multiplies the band rate by the number of "chargeable" adults (after discounts) to calculate your bill.

What are the council tax bands?

Properties are placed in bands A to H based on their value in April 1991:

• Band A - Up to £40,000 (lowest)
• Band B - £40,001 to £52,000
• Band C - £52,001 to £68,000
• Band D - £68,001 to £88,000 (this is the "standard" band)
• Band E - £88,001 to £120,000
• Band F - £120,001 to £160,000
• Band G - £160,001 to £320,000
• Band H - Over £320,000 (highest)

Band D is used as the standard, and other bands are calculated as a percentage of Band D (e.g., Band A is 6/9 of Band D).

Who has to pay?

The person responsible for paying council tax is usually:

• The owner-occupier - If you own and live in the property
• The tenant - If you rent the property
• The owner - If the property is empty or a second home

If you live with other adults, you're all jointly responsible, but usually one person is the main bill payer.

What discounts are available?

You can get discounts if:

Single person discount:

• 25% off - If only one adult lives in the property

Student discount:

• Full exemption - If everyone in the property is a full-time student
• 25% off - If one person is a student and others aren't

Severely mentally impaired:

• Full exemption - If you're severely mentally impaired and live alone
• 25% off - If you live with one other adult

Disabled person reduction:

• Reduced band - If you need extra space or facilities due to disability, you may pay the band below

Empty property:

• Varies by council - Some offer discounts for empty properties, others charge extra

What properties are exempt?

Some properties are completely exempt from council tax:

• Properties where everyone is a student - Full-time students only
• Properties where everyone is under 18 - Children can't be liable
• Properties where the owner has died - Until probate is granted
• Properties that are derelict - Uninhabitable properties
• Armed forces accommodation - Certain military properties
• Annexes occupied by dependent relatives - In certain circumstances

How do I pay?

Council tax is usually paid:

• Over 10 months - April to January, with February and March off
• Over 12 months - You can request to spread it over the full year
• Monthly by direct debit - The easiest way to pay
• Other methods - Online, by phone, or at council offices

Your council will send you a bill showing how much you owe and when payments are due.

Can I appeal my band?

Yes, you can appeal your council tax band if:

• The property has changed - Been demolished, split, or merged
• You think it's in the wrong band - Compared to similar properties nearby
• You've just moved in - You have 6 months to appeal

Contact the Valuation Office Agency (VOA) to appeal. Be aware that your band could go up as well as down, so only appeal if you're confident it's wrong.

What if I can't pay?

If you're struggling to pay council tax:

• Contact your council - They may be able to help with payment plans
• Check if you're eligible for benefits - Council Tax Reduction (formerly Council Tax Benefit) can help
• Get advice - From Citizens Advice or a debt advice service
• Don't ignore it - The council can take enforcement action, including bailiffs

Council tax is a priority debt, so it's important to address it if you're having trouble paying.

Summary

• Council tax is a local tax that funds services like schools, roads, and rubbish collection
• It's calculated using property bands (A to H) based on 1991 property values
• Full council tax is based on 2+ adults; single person gets 25% discount
• Students, severely mentally impaired people, and some others can get discounts or exemptions
• You can appeal your band if you think it's wrong
• Council tax is usually paid over 10 months (April to January)
• If you can't pay, contact your council or get debt advice
• Council Tax Reduction may be available if you're on a low income