Council Tax is a system of local taxation collected by local authorities. Council Tax is a tax on domestic property which was introduced in 1993 by the Local Government Finance Act 1992, replacing the short lived Community Charge, which in turn replaced the domestic rates. But how exactly is Council Tax worked out? Express.co.uk explains the process.
How is Council Tax worked out?
Council Tax is calculated based on the value of your property at a specific point in time.
For instance, in England your Council Tax is based on what the value of your property would have been on April 1, 1991.
To work out your council tac, you’ll need to know three things:
- the valuation band for your home in England and Wales or in Scotland
- how much your local council charges for that band
- whether you can get a discount or exemption from the full bill
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You can get 25 percent off your bill if you count as an adult for Council Tax and either live on your own or no-one else in your home counts as an adult.
You’ll usually get a 50 percent discount if no-one living in your home, including you, counts as an adult.
In addition, you will not have to pay any Council Tax if everyone in your home, including you, is a full-time student.
Council tax bands are calculated differently in England, Scotland, Wales and Northern Ireland.
What are the Council tax bands in England, Wales, Scotland and Northern Ireland?
Council tax bands in England
Properties in England are put into one of eight bands, from A to H, depending on the price they would have sold for in April 1991.
The valuation band ranges for England are as follows:
- A: Up to £40,000
- B: More than £40,000 and up to £52,000
- C: More than £52,000 and up to £68,000
- D: More than £68,000 and up to £88,000
- E: More than £88,000 and up to £120,000
- F: More than £120,000 and up to £160,000
- G: More than £160,000 and up to £320,000
- H: More than £320,000
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Council tax bands in Scotland
Properties in Scotland are also put into one of eight bands from A to H, based on their value in April 1991.
The valuation band ranges for Scotland are as follows:
- A: Up to £27,000
- B: More than £27,000 and up to £35,000
- C: More than £35,000 and up to £45,000
- D: More than £45,000 and up to £58,000
- E: More than £58,000 and up to £80,000
- F: More than £800,000 and up to £106,000
- G: More than £106,000 and up to £212,000
- H: More than £212,000
Council tax bands in Wales
Properties in Wales were re-valued in 2003, meaning council tax bands are based on their market value on April 1, 2003.
There are nine valuation bands, from A to I which are as follows:
- A: Up to £44,000
- B: More than £44,000 and up to £65,000
- C: More than £65,000 and up to £91,000
- D: More than £91,000 and up to £123,000
- E: More than £123,000 and up to £162,000
- F: More than £162,000 and up to £223,000
- G: More than £223,000 and up to £324,000
- H: More than £324,000 and up to £424,000
- I: More than £424,000
Domestic rates in Northern Ireland
Northern Ireland has kept the old system of domestic rates, based on rental values.
In 2007, Northern Ireland changed to a modified system of domestic rates, based on the capital value of individual properties.
To work out the domestic rates, you need to take the capital value of your home, for example £80,000, check the rate for where you live, for example in the Armagh City, Banbridge and Craigavon Council area.
Your calculation would be: £80,000 x 0.008285 = £662.80.
Here are the Northern Ireland domestic rate poundage levels for each council area in 2017/18:
- Antrim and Newtownabbey Council 0.007634
- Ards and North Down Borough Council 0.007256
- Armagh City, Banbridge and Craigavon Borough Council 0.008285
- Belfast City Council 0.007376
- Causeway Coast and Glens 0.007745
- Derry City and Strabane District Council 0.008724
- Fermanagh and Omagh Council 0.007564
- Lisburn and Castlereagh Council 0.007062
- Mid and East Antrim Council 0.008269
- Mid Ulster Council 0.007303
- Newry, Mourne and Down Council 0.007869
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