What is Council Tax?
Council Tax is a local tax collected by councils across the UK from people who live in residential properties. Its main purpose is to help fund essential local services, such as rubbish collection, street cleaning, libraries, schools, and maintaining parks and public spaces. The amount you pay goes directly towards keeping your community running smoothly.
Most residential properties in England, Wales, and Scotland are subject to Council Tax. This includes houses, flats, maisonettes, and sometimes even houseboats or mobile homes if they are used as someone’s main home. In general, if you are over 18 and live in a property, you will usually be responsible for paying Council Tax, whether you own your home or rent it. Some properties, such as student halls of residence or certain types of care homes, are exempt from Council Tax. There are also discounts and exemptions available for people in particular circumstances, such as those living alone or with severe mental impairment.
The rules about who must pay, how much is due, and how Council Tax is enforced are set out in the Council Tax (Administration and Enforcement) Regulations 1992, which provide detailed guidance for both councils and residents.
Council Tax is just one part of the wider support available for people with housing costs. If you are struggling to pay your Council Tax or need help with other housing expenses, you may be eligible for housing assistance. This can include benefits, grants, or other types of support to help you stay in your home.
Understanding what Council Tax is and how it works can help you budget more effectively and make sure you are receiving any help you are entitled to. If you are unsure about your situation or think you might qualify for a discount or exemption, it’s a good idea to contact your local council or seek advice.
Who Must Pay Council Tax?
When it comes to Council Tax, the person responsible for paying is usually the one who occupies the property as their main home. This includes both homeowners and tenants. If you own your home and live in it, you are generally responsible for the Council Tax bill. If you rent, you will usually be liable if you have a tenancy agreement and live in the property, unless your landlord has agreed to pay it as part of your rent.
How is liability decided? The rules for who must pay Council Tax are set out in the Local Government Finance Act 1992, which places responsibility on the person highest on the “hierarchy of liability.” This hierarchy is as follows:
A resident freeholder (usually the owner-occupier).
A resident leaseholder.
A resident statutory or secure tenant.
A resident licensee.
Any other resident.
The owner (if the property is unoccupied or no one meets the above criteria).
If more than one adult lives in the property and they are on the same level of the hierarchy (for example, joint tenants or a couple who own the home together), they are jointly and severally liable. This means the council can ask any or all of them to pay the full amount.
Special rules for students and certain groups Some people are not counted when working out who must pay Council Tax or how much is due. Full-time students are usually exempt from paying Council Tax. If everyone living in a property is a full-time student, the property is exempt from Council Tax altogether. If only some residents are students, the bill may be reduced.
Other groups who may be exempt or eligible for discounts include:
People with severe mental impairments.
Young people under 18.
Live-in carers who meet specific criteria.
Your habitual residence status can also affect your eligibility for certain discounts or exemptions. For example, if you are not habitually resident in the UK, you may not be liable for Council Tax, or you may qualify for a discount.
What if the property is empty or a second home? If a property is unoccupied, the owner is usually responsible for Council Tax. Some councils offer discounts for empty properties or second homes, but these vary by area.
If you’re unsure about your situation, it’s best to check with your local council. They can clarify who is responsible for the bill and whether you might be eligible for any exemptions or reductions. For more details on the legal framework, you can refer to the Local Government Finance Act 1992.
How is Council Tax Calculated?
Council Tax is a local tax set by your local council to help pay for services like rubbish collection, street cleaning, and schools. The amount you pay depends on several factors, including the value of your property, where you live, and the specific rates set by your council. Here’s how the calculation works:
Every property in England, Scotland, and Wales is placed into a Council Tax band based on its value at a specific date:
England and Scotland: The bands are based on what your property would have been worth on 1 April 1991.
Wales: The bands use property values from 1 April 2003.
There are usually eight bands, labelled A to H (A to I in Wales), with Band A being the lowest and Band H (or I) the highest. The lower the band, the less Council Tax you pay.
For example, in England:
Band A: Up to £40,000
Band B: £40,001–£52,000
Band C: £52,001–£68,000
Band D: £68,001–£88,000
Band E: £88,001–£120,000
Band F: £120,001–£160,000
Band G: £160,001–£320,000
Band H: Over £320,000
These values are set by the Valuation Office Agency (VOA).
Each local council sets its own Council Tax rates every year. They decide how much money they need to raise to fund local services, then divide this total between all the properties in their area, according to their band.
Band D is used as the standard benchmark. The council works out the Band D charge, and charges for other bands are set as a proportion of this amount. For example, Band A usually pays two-thirds of the Band D rate, while Band H pays twice as much.
Because each council sets its own rates, the amount you pay can vary significantly depending on where you live – even if your property is in the same band as someone in another area.
Several factors can influence the amount you pay:
Property Band: Higher bands mean higher bills.
Location: Different councils have different rates.
Property Size and Features: Larger or more valuable properties are usually in higher bands.
Local Precepts: Some areas may have additional charges for things like parish councils, police, or fire services, which are added to your bill.
You can check your property’s Council Tax band by visiting the Valuation Office Agency (VOA) website for England and Wales, or the Scottish Assessors Association website for Scotland. Your local council’s website will also show the current year’s rates for each band, so you can work out exactly how much you’ll need to pay.
Your annual Council Tax bill, sent by your local council, will detail your band, the amount due, and any discounts or exemptions applied.
If you think your property is in the wrong band, you can ask for a review. It’s important to have evidence, such as recent sale prices of similar properties in your area.
Understanding how Council Tax is calculated can help you budget more accurately and ensure you’re paying the correct amount. If you’re struggling to pay, it’s important to seek help early, as there may be discounts, exemptions, or support available.
Discounts, Exemptions, and Reductions
Council Tax bills don’t always reflect the full standard rate – there are a range of discounts, exemptions, and reductions that could lower what you have to pay. Understanding which of these you might be eligible for can make a significant difference to your household finances.
One of the most widely claimed discounts is the single person discount. If you live alone, or are the only adult in your household, you can apply for a 25% reduction on your Council Tax bill. This also applies if everyone else in your home is ‘disregarded’ for Council Tax purposes (for example, if they are full-time students or have severe mental impairment).
Other circumstances may entitle you to a discount, such as:
If all the adults in your home are disregarded (e.g., students, apprentices, or carers), you could receive a 50% discount or even a full exemption.
If someone moves out or a household member dies, you should report this to your local council, as it may change your entitlement.
Certain properties and residents are completely exempt from paying Council Tax. Common exemptions include:
Properties occupied only by full-time students.
Accommodation used solely by people under 18.
Dwellings where everyone is severely mentally impaired.
Empty properties under specific conditions, such as those left unoccupied because the resident is in hospital or care.
For a full list of exemptions and the legal definitions, you can refer to the official Council Tax (Exempt Dwellings) Order 1992, which outlines the classes of dwellings that do not attract Council Tax.
If you or someone in your household is disabled, you may qualify for a reduction in your Council Tax bill. This is known as the “disabled band reduction scheme.” If your home has been adapted to meet the needs of a disabled resident – such as an extra bathroom, a room specifically for wheelchair use, or widened doorways – you could have your Council Tax band lowered by one band, which usually means a lower bill.
To apply, contact your local council and provide details of the adaptations and the needs of the disabled resident. You may also want to explore disability adjustments for further support and information on additional help available.
All discounts, exemptions, and reductions are applied directly to your Council Tax bill, so you only pay the amount you’re legally required to. If your circumstances change, it’s important to inform your local council promptly to ensure you’re paying the correct amount and not missing out on any help you’re entitled to.
If you’re unsure about your eligibility or need help with the application process, your local council’s website is a good starting point, or you can seek advice from a local advice centre. Taking advantage of the right discounts and exemptions can ease financial pressure and ensure your Council Tax bill is fair and manageable.
How to Pay Your Council Tax
Paying your Council Tax is a legal requirement for most households in the UK, and each local council offers a range of convenient ways to make payments. Understanding your options and knowing what to do if you’re struggling can help you stay on top of your bills and avoid extra charges.
Local councils generally accept several methods for paying Council Tax. The most common options include:
Direct Debit: This is often the easiest and most popular way to pay. You can set up a Direct Debit so the payment is automatically taken from your bank account each month. Many councils allow you to choose from several payment dates.
Online Payments: Most councils have secure online portals where you can pay using a debit or credit card.
Telephone Payments: You can usually make payments over the phone using your debit or credit card.
Standing Order or Bank Transfer: You can arrange regular payments directly from your bank account to the council’s account.
At the Post Office or PayPoint: Some councils let you pay in person at local Post Offices or PayPoint locations using your Council Tax bill or payment card.
By Cheque: Although less common, some councils still accept payment by cheque, either by post or in person.
Check your council’s website or your Council Tax bill for specific instructions and reference details needed for each method.
Council Tax is usually billed annually, but you can pay in instalments – most commonly over 10 monthly payments from April to January. Some councils offer the option to spread payments over 12 months to reduce the monthly amount. If you’d like to change your payment schedule, contact your local council to request a different arrangement.
If you miss a payment, your council will send you a reminder notice giving you seven days to pay. If you do not pay within this time, you may lose the right to pay by instalments and could be asked to pay the full year’s balance at once. Continued non-payment can lead to court action and additional costs.
If you’re struggling to pay your Council Tax, it’s important to act quickly. Councils are required under the Council Tax (Administration and Enforcement) Regulations 1992 to consider payment arrangements if you’re in financial difficulty. You may be able to agree a new payment plan that better suits your circumstances.
You might also qualify for Council Tax Reduction, discounts, or exemptions depending on your situation, such as if you live alone, are a student, or have a low income. It’s a good idea to explore all available support options.
Your local council is your main point of contact for any questions about your Council Tax bill, payment methods, or difficulties paying. Council staff can explain your payment options, help you set up a payment plan, or advise on any discounts and support you might be entitled to. You can usually contact them by phone, email, or through their website.
If you’re not sure who your local council is, you can find this information on your Council Tax bill or by searching online with your postcode. Don’t hesitate to reach out – early communication can help prevent further problems and additional charges.
Help and Support with Council Tax Payments
If you’re finding it difficult to keep up with your Council Tax payments, there are several forms of help and support available. Many people are unaware that they may qualify for assistance, especially if they are on a low income or facing financial hardship.
You may be eligible for help with your Council Tax if you:
Have a low income, whether you’re employed, self-employed, or receiving benefits
Claim certain benefits, such as Universal Credit, Pension Credit, Income Support, or Jobseeker’s Allowance
Live alone or with people who are exempt from paying Council Tax
Are a student, carer, or have a disability
Local councils run their own support schemes, so the exact rules and eligibility criteria can vary depending on where you live. However, all councils are required by law (Local Government Finance Act 2012) to offer some form of Council Tax Reduction (sometimes called Council Tax Support) for those who qualify.
Council Tax Reduction is the main way to get help with your Council Tax bill if you’re on a low income. The amount of reduction you can get depends on:
Your household income and savings
Who lives with you
Your local council’s scheme
Some people may get their bill reduced to zero, while others may receive a partial discount.
How to Apply: You need to apply directly to your local council for Council Tax Reduction. Applications can usually be made online, by phone, or in person. You’ll need to provide details about your income, savings, and household circumstances. Your council will then assess your claim and let you know how much help you can get.
If you’re unable to pay your Council Tax, contact your local council as soon as possible. They may be able to:
Set up a payment plan to spread the cost
Offer temporary support if you’re experiencing a short-term crisis
Advise you on further discounts or exemptions you might be entitled to
Ignoring Council Tax bills can lead to legal action and extra costs, so it’s important to seek help early.
If you need more help with housing costs, you might also be eligible for Housing Benefit, which can assist with rent payments if you’re on a low income. For broader advice and support, including emergency help or guidance on your housing situation, explore our housing assistance resources.
Remember, you are not alone. There are support services and benefits designed to help if you’re struggling with Council Tax or other housing costs. Don’t hesitate to reach out and find out what you may be entitled to.
Related Housing Support and Options
If you are finding it hard to keep up with your Council Tax payments, it’s important to know that there are several types of housing support and alternative options available. These can help make your housing costs more manageable and may affect your Council Tax responsibilities.
Affordable housing is designed to help people on lower incomes access homes at below-market rents or through shared ownership schemes. If you qualify for affordable housing, your monthly rent may be lower than in the private sector, easing your overall financial burden. While you will still be responsible for paying Council Tax, the reduced rent could free up income to help meet these payments. In some cases, you may also be eligible for Council Tax Reduction if you are on a low income.
Social housing refers to homes provided by local councils or housing associations to people in need. If you are allocated social housing, your rent is typically set at an affordable level and your tenancy may come with additional support services. Tenants in social housing are usually responsible for paying Council Tax, but you may be entitled to discounts or exemptions depending on your circumstances. The rules governing social housing and tenant rights are set out in the Housing Act 1996.
Council housing is a specific type of social housing managed directly by local authorities. If you live in council housing, you will generally pay a lower rent compared to private rentals. Council tenants are responsible for their own Council Tax, but may qualify for reductions if they receive certain benefits or have a low income. Local councils can also provide advice and support if you are struggling to pay.
These housing options are designed to make living costs more affordable and provide greater security. If you’re having difficulty meeting your Council Tax or housing payments, exploring these alternatives could help you find a solution that fits your needs. Each option has its own eligibility criteria, so it’s worth checking with your local council or a housing adviser to see what support you might qualify for.
For more detailed legal information about your rights and responsibilities, you can refer to the Housing Act 1996, which sets out the main laws on housing support and social housing in the UK.
If you are struggling with housing costs or Council Tax, don’t hesitate to look into these support options – they could make a real difference to your financial situation.
