It is a local tax on domestic properties. Now not all properties have to pay council tax. Similarly, not all people have to pay council tax. There are also discounts available.
How is It Calculated?
The amount of council tax that you pay is based on the valuation band afforded to your property by the Valuation Office Agency (VOA) and the tax rate that your local council has assigned to that valuation. All properties are placed in a band according to their value in 1 April 1993. (There are no current plans to carry out a re-valuation). Below is a breakdown of the different bands.
| Valuation Band | Range of Values |
| A | £0 - £40,000 |
| B | £40,000 - £52,000 |
| C | £52,000 - £68,000 |
| D | £68,000 - £88,000 |
| E | £88,000 - £120,000 |
| F | £120,000 - £160,000 |
| G | £160,000 - £320,000 |
| H | £320,000 + |
You can find out what band your property is in by submitting your postcode (or potential postcode) at the VOA website.
Council Tax Exemptions
Now some properties are exempt from council tax. These include:
- Any properties where only students live
- A property where everyone who lives in it is under 18
- Condemned or empty properties
Who's Responsible for Paying Council Tax?
Now the person liable for paying the council tax bill is usually the person who lives in the house. However, in the following circumstances the owner is liable.
- The property is shared by different households who all pay rent separately
- All the people living in the house are under 18
Hierarchy of Liability
- a resident owner-occupier who owns either the leasehold or freehold of all or part of the property
- a resident tenant
- a resident who has permission to stay in a property but is not a tenant.
- any resident living in the property, for example, a squatter
- an owner of the property where no one is resident
Council Tax Discounts
One of the easiest discounts to get is if you are an adult living alone. Your council tax burden can be reduced by 25%. To get this, be sure to contact your local council to fill out the appropriate paperwork.
The sole adult discount can apply if there are other people living in the property if these people fall into the category of disregarded adults. Disregarded adults include:
- a full-time student on a qualifying course of education, including student nurses
- staying in a hostel or night shelter
- a member of a visiting armed force. Your dependents are also disregarded.
Be forewarned that if you have received a council tax discount that you're not entitled to, that you have 21 days to inform the council. Otherwise, you will face penalties (if they find out).
How to Pay Council Tax Bills
All new bills are issued 1 April with the council's new tax rate. However, you usually get your first bill shortly after moving in. You have several payment options. You can pay monthly, quarterly or yearly. Payments can be made at the council, over the phone, at your council's bank or online
Consequences of Not Paying Your Bill
If you don't pay your council tax by the due date, you'll receive a reminder and a request to pay the bill within a set period of time. If you don't pay within this extension period, you may no longer be able to pay your bill in installments and can be liable to pay your yearly council tax bill. If your local council has to issue three late reminders in one year, then you will lose the right to pay by installments.
Failure to pay you're bill can result in your council going to court and getting a a liability order issued which will allow the council to deduct your council tax payments from your paycheck or for bailiffs to repossess any goods to the value owed. Alternatively, you can go to jail.
So be sure to pay your council tax!
Source: Citizen's Advice Bureau
Links: Council Directory
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