Local councils in England impose council tax on domestic properties, affecting nearly 22 million homes. This mandatory tax can be waived or reduced under certain conditions, allowing some residents to pay less or nothing at all. Council tax is crucial for funding local amenities such as fire services, street cleaning, and other essential community functions. It contributes to about 25% of local government spending, ensuring the efficient operation of the community.

It’s important to understand your rights and responsibilities concerning council tax, which can vary depending on your specific situation.

Many people are unsure about the rules and exemptions related to council tax payments for their homes, including their obligation to contribute and how their payments are used. To clarify these issues, we have created a detailed guide to council tax. Whether you are a new homeowner or need a deeper understanding of council tax for your particular circumstances, our guide provides invaluable help. At Council Tax Advisors, we not only offer advice and information about council tax but also propose solutions for those struggling to manage their council tax bills.

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.

1. Band A – up to £40,000 (£845 average)
2. Band B – £40,001 to £52,000 (£986 average)
3. Band C – £52,001 to £68,000 (£1,127 average)
4. Band D – £68,001 to £88,000 (£1,268 average)
5. Band E – £88,001 to £120,000 (£1,550 average)
6. Band F – £120,001 to £160,000 (£1,832 average)
7. Band G – £160,001 to £320,000 (£2,113 average)
8. Band H – £320,001 and above (£2,536 average)