Council Tax applies to all domestic properties whether you own or rent your home. Whether you live in a house, flat, mobile home, houseboat or bungalow, you will be required to pay Council Tax.
Council Tax is paid to your local council and goes towards funding local services such as police, libraries, refuse collection and the fire service.
In order to work out how much Council Tax you will pay, you will need to follow a three step process. Our guide explains how you can work out what Council Tax you will pay.
Step One – Work out which valuation band you’re in
The main factor that determines the Council Tax that you will pay is the valuation of your home. In England there are eight Council Tax valuation bands based on the value of your home on 1 April 1991. Your Council Tax is not based on the current value of your home but on the value on this date.
In Wales, your home is put in one of nine valuation band based on the value in 2003. There are also different valuation bands in Scotland.
The current valuation bands in England are:
- Valuation band A – up to £40,000
- Valuation band B – over £40,000 and up to £52,000
- Valuation band C – over £52,000 and up to £68,000
- Valuation band D – over £68,000 and up to £88,000
- Valuation band E – over £88,000 and up to £120,000
- Valuation band F – over £120,000 and up to £160,000
- Valuation band G – over £160,000 and up to £320,000
- Valuation band H – over £320,000
Step Two – Find out what your council charges for your band
Once you have established which valuation band your home is in, you can then approach your local council to establish their Council Tax rate for that band.
Each council decides on its own charging structure and the amount of Council Tax that you will pay will vary from council to council.
Step Three – Work out if you’re entitled to any exemptions
Once you have established what you will be charged for your home by your local council, you can then look at whether any discounts or exemptions to your Council Tax can be applied.
While a ‘full’ Council Tax bill is based on two or more adults living in a household, what you will pay depends on your personal circumstances.
For example, if you are the only adult living in your household you are entitled to a 25 per cent reduction on your Council Tax. In addition, homes which are occupied only by students in full time education are generally completely exempt from paying any Council Tax at all.
There are a number of reasons why you may be eligible for a discount and you can contact your local council to find out more about these.