THE CAMPAIGN AGAINST COUNCIL TAX

What is council tax

What is Council Tax?

Local government is financed by a combination of centrally-administered funding and locally-administered charges and taxes - the most significant of which is council tax.

Council tax combines elements of both its predecessors: the property-based rates system that existed until 1990 and the community charge or 'poll tax' on individuals, which existed from 1990 to 1993. Council tax has both a property value element and a personal element.

People's council tax liabilities depend on which 'band' their property is in, the number of council tax payers in the local authority's territory (the council tax base), how much the local authority intends to spend that year and the funding it has been allocated from central Government.

'Collection authorities' include unitary authorities, London borough councils, metropolitan borough councils, and shire district and borough councils. In two-tier areas, the district council collects council tax to pay for its own services and to cover the precept issued by the county council and any relevant parish or community council for the services they provide.

Precepts are also added to people's total council tax bills by the local Police Authority and any relevant Fire and Civil Defence Authority.

Valuation bands

Each local authority keeps a list of all the domestic property in its area. This is called the valuation list. Each property is valued at April 1991 prices and put into a valuation band. A different amount of council tax is then charged on each band. The valuation bands are:-
 

In England:

In Scotland:

In Wales:

Band D is the datum point for calculating council tax bills, so the charges for properties in the other bands are calculated as a ratio of the Band D charge:

Band A: 6/9
Band B: 7/9
Band C: 8/9
Band D: 1
Band E: 11/9
Band F: 13/9
Band G: 15/9
Band H: 2

Finding out what band a dwelling is in

To find out what band a dwelling is in you can:-

• inspect a copy of the valuation list (see below)

• look at the council tax banding lists published on the internet by the Valuation Office Agency at www.voa.gov.uk

• check with your local authority in advance of receiving a council tax bill

• if you are the liable person, you can also find the valuation band from the council tax bill or from an alteration to the valuation list by the listing officer.

A copy of the valuation list is kept at the local authority's main offices and is available for public inspection. Local authorities may also make the list available in other offices, including libraries. You can look at and make copies of the valuation list at the local authority's office or at the local valuation office. There may be a small charge.
If an alteration is made to the valuation list, including adding a new dwelling to the list, the listing officer will inform the liable person.

Properties exempt from council tax

Some property is exempt from council tax altogether. It may be exempt for only a short period, for example, six months, or for a longer time.

Properties which may be exempt are:-

• empty property

• property which is undergoing major repairs or alterations

• condemned property

• property which has been re-possessed by a mortgage lender

• property unoccupied because the person who lived there now lives elsewhere because they need to be cared for, for example, in hospital (or with relatives)

• property which is unoccupied because the person who lived there has gone to care for someone else

• any property that only students live in. This may be a hall of residence, or a house

• a caravan or boat on a property where council tax is paid

• a property where all the people who live in it are aged under 18

• a property where all the people who live in it are either severely mentally impaired or are students or where there is a mixture of both

• a self-contained ?granny flat? where the person who lives in it is a dependent relative of the owner of the main property.

In addition, in Scotland, the following properties are also exempt:-

• unoccupied agricultural dwellings

• housing association ?trial? housing

• a building owned by a registered social landlord which is waiting for demolition.

If you think that your property should be exempt, you should consult an experienced adviser, for example, at a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB