Every year, thousands of people must pay council tax for the first time. This can be daunting, especially if it’s your first experience figuring out your council tax rate.
If you buy a house within a council’s boundary, you’ll need to pay taxes for it, but as a first-time homeowner, it may be confusing. Don’t worry if you make a mistake with the amount you pay – just make sure you read this so you understand all there is to know about council taxes.
Council taxes are divided into eight bands, based on the value of your house. The higher the value, the more you’ll need to pay in taxes. If you recently bought a house but don’t have any idea what council tax is or how it affects you, keep reading for more information.
Table of Contents
What Is Council Tax?
Council tax may be unfamiliar to those who have just purchased their first property. It is simply another way for the government to collect taxes from homeowners.
Usually, bills for council taxes are sent out in April and can be paid in ten manageable instalments, or can be paid in two-week or four-week intervals.
Council taxes are divided into eight different bands, which are based on alphabetical levels – A being the lowest and H being the highest amount of taxes you could potentially pay.
Who Has To Pay Council Tax?
Anyone who owns property needs to pay their council taxes, unless their only properties are condemned, repossessed, currently unlived-in, or only lived in by people under eighteen years of age. This is to prevent people from being taxed unfairly or overtaxed due to their low income.
The liable person is the one responsible for paying the taxes, and this is usually the owner who lives in the property. If no one is living there, then squatters become liable. The amount of council tax due is based on the value of the property and is assigned a council band.
Those who live alone, are disabled, or have a low income may be able to cancel their council tax. You can view and pay your council tax bill online.
How Much Council Tax Do I Pay?
If you’re wondering, “What council tax band am I?”, it’s time to investigate. Your council tax will depend on the value of your property. There are various online services which offer a council tax checker, or you can do your research to determine the band in which your home falls.
If you’ve recently bought your home, you can easily find out its worth. However, if you have lived in the house for a long time, it can be more difficult to work out its price.
To find your council tax band, consider several factors about your home. How much was it worth in 1991? Council tax bands range from A to H, with A being valued at £40,000 in 1991, B being £40,000 to £52,000, C being £52,000 to £68,000, D being £68,000 to £88,000, E being £88,000 to £120,000, and F being £120,000 to £160,000.
Properties are more expensive than this fall into the G and H bands, which are £160,000 to £320,000 and more than £320,000 respectively.
If you’re not sure how much your home is worth, you can use gov. uk or check your last council tax bill. Alternatively, your local council should have records of your home’s value, which you can obtain for a small fee at your local library.
If your council band changes, you’ll be sent a letter informing you of the new total, so make sure your council has your mailing address on file.
Remember that your council tax amount may differ from year to year, so the value and price of your home may also fluctuate. It’s not unusual to pay different amounts of council tax in different years.
My Council Tax Band Is Wrong! What Do I Do?
Don’t panic if your council tax band is wrong! You’ll need to appeal for the band to be changed by getting in touch with your local Valuation Office Agency.
The official phone number for England is 03000 501 501, and for Wales, it’s 03000 505 505. When you make your case, you’ll need to provide evidence of five similar houses in a lower tax band.
Include the addresses, ages, styles, bands, and types. Don’t rely on online sources such as Zoopla, Rightmove, or the Nationwide House Price Index as these may not be accurate.
Instead, visit your local archives. It should take around two months for a decision to be made. If you don’t agree with the outcome, you can appeal.
You can do this if you’ve moved in within the last 6 months, had your band changed in the last 6 months, had your property demolished, adapted your home for someone with a disability, or experienced significant property damage since 1991.
Changing your tax band isn’t difficult, but make sure that your local Valuation Office Agency is aware of any changes that may have taken place since their last evaluation.
Are Some Properties Exempt From Council Tax?
Some properties are exempt from council tax and don’t need to be evaluated. This can include properties that have been condemned, or repossessed by a bank, a guesthouse, or a large houseboat.
Additionally, households, where all members are under 18, disabled, or severely mentally impaired, don’t have to pay council taxes.
If an elderly or infirm relative has moved to a care home or moved away to care for someone, their unoccupied home would not be liable for council taxes.
Furthermore, a student discount exists; if all occupants of the house are students or foreign language assistants, then they won’t need to pay council taxes.
Calculating Your Council Taxes
If you want to figure out how much you need to pay for your council taxes quickly, don’t worry!
Your council taxes are usually worked out based on the value of your property, and you may or may not be required to pay them depending on your living situation. Rebates on council tax can be a great bonus during tax season.
If your second home is unoccupied at the moment, you don’t have to pay council tax for it.
Ultimately, calculating your council taxes can be straightforward, and if you think you’re in the wrong band, it can be easily resolved. There are lots of ways you can find out more about what you need to do to pay your council tax.
Any thoughts about selling your home?
Are you looking to sell your house? We buy houses in any condition. Get in touch if you are thinking of selling.
Property Saviour Price Promise
- The price we’ll offer is the price that you will receive with no hidden deductions.
- Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
- These valuations or surveys result in delays and price reductions later on.
- We are cash buyers. There are no surveys.
- We always provide proof of funds with every formal offer issued.
We'll Pay £1,500 Towards Your Legal Fees
- No long exclusivity agreement to sign because we are the buyers.
- You are welcome to use your own solicitor.
- If you don’t have one, we can ask our solicitors for recommendations.
- We share our solicitor’s details and issue a Memorandum of Sale.
Sell With Certainty & Speed
- Our approach is transparent and ethical, which is why sellers trust us.
- 100% Discretion guaranteed.
- If you have another buyer, you can put us in a contracts race to see who completes first.
- Complete in 10 days or at a timescale that works for you. You are in control.
