Help with Council Tax
Local authorities collect council tax from domestic properties, and it is an obligatory tax imposed on nearly 22 million residences in England.
However, there exist certain situations in which individuals are exempt from paying council tax for their residence or qualify for a discounted amount. Council tax serves as a means to generate funds that are subsequently allocated to various local services, including fire services, street cleaning, and more. The underlying concept is that residents within a community can contribute to the financing of essential services that ensure the smooth functioning of the community. The revenue generated from council tax covers approximately 25% of local government expenditures.
Numerous individuals find themselves uncertain about the regulations and exceptions concerning the payment of council tax for their homes, including whether they are obligated to pay and how their contributions are allocated. To address these concerns, we have developed a comprehensive council tax overview that provides all the necessary information. Whether you are a first-time property owner or seeking a detailed understanding of council tax relevant to your current circumstances, our overview offers valuable assistance. At Council Tax Advisors, we not only provide guidance and information on council tax but also offer solutions for individuals facing difficulties in managing their council tax payments.
Council Tax overview
Enacted as a substitute for the widely criticized Community Charge, council tax was introduced in 1993 through the Local Government Finance Act 1992. Unlike its predecessor, council tax is calculated based on the market value of a property rather than its rental value. The specific amount payable is determined by the local council, taking into account factors such as the overall funding requirements of the council and the property’s valuation band. Nonetheless, certain properties are exempt from council tax payments, which includes residences that fall under the following categories:
- Occupied only by full-time students
- Unoccupied and repossessed by a mortgage lender or liable trustee in bankruptcy
- Unoccupied due to major repair work or structural alteration
- Occupied only by people under 18
- Accommodation for armed forces
- Unoccupied after someone on the estate has died
Once the local council has collected council tax from residents, it is important to understand where the funds are allocated. The utilization of council tax by councils is contingent to some extent on the amount collected, with tax increases often implemented to compensate for budget shortfalls resulting from cuts. However, a significant portion of the revenue derived from council tax is dedicated to crucial areas such as schools funding, refuse and recycling collections, as well as the maintenance of libraries and leisure centers for the benefit of local residents. For a broader understanding of council tax and council tax bands, you can refer to the comprehensive council tax overviews provided in this section of our website.
Your Council Tax Band guide
- Band A – up to £40,000 (£845 average)
- Band B – £40,001 to £52,000 (£986 average)
- Band C – £52,001 to £68,000 (£1,127 average)
- Band D – £68,001 to £88,000 (£1,268 average)
- Band E – £88,001 to £120,000 (£1,550 average)
- Band F – £120,001 to £160,000 (£1,832 average)
- Band G – £160,001 to £320,000 (£2,113 average)
- Band H – £320,001 and above (£2,536 average)