Council tax is a tax on domestic property that was introduced in the UK in 1993 to replace poll tax.
The money collected is used to help pay for the services that a council provides like street cleaning, rubbish collection, and maintaining roads.
Council tax is payable on all types of domestic homes, including owned and rented properties.
The amount that is due on is determined by which council tax band the property falls within.
What are the different council tax bands?
In England, the council tax bands are as follows:
Council tax bands in Wales and Scotland are different to those in England.
Band A – property value up to £40,000
Band B – property value over £40,000 and up to £52,000
Band C – property value over £52,000 and up to £68,000
Band D – property value over £68,000 and up to £88,000
Band E – property value over £88,000 and up to £120,000
Band F – property value over £120,000 and up to £160,000
Band G – property value over £160,000 and up to £320,000
Band H – property value over £320,000
You can check a property’s council tax band on the government website here.
How are council tax bands decided?
The Valuation Office Agency (VOA) for England and Wales assesses properties to determine their council tax bands.
Factors that they consider during the assessment include:
- Change in use
- Value (on 1 April 1991 in England and 1 April 2003 in Wales)
Appealing a property’s council tax band
You can challenge a property’s council tax band if you believe it to be wrong.
Appeals should be submitted to the VOA along with a reason for the challenge and supporting evidence.
The government website provides information about the type of evidence required to appeal.
Common reasons for challenging a property’s council tax band include:
- The property has changed
- The property’s use has changed
- The local area has changed
Council tax for rental properties
In the case of rented property, it is usually the tenants that are responsible for paying the council tax bill.
However, there are instances when this is not the case. For example, if the property is an HMO (house of multiple occupancy) and all tenants have sole tenancy agreements, then it is the landlord that is responsible for paying the council tax.
In this example, it is common practice for the landlord to adjust the tenants’ rent accordingly to cover the cost of council tax.
Here at Mistoria Estate Agents, we are proud to be a leading estate agency in the North West of England, with branches in Bolton, Cheadle Hulme, Worsley, Liverpool, and Salford.
Our team helps individuals to buy and sell property and provide landlords with a variety of property management services.