Define: Council Tax

Council tax is a local taxation system used in the United Kingdom to fund the provision of local government services, such as rubbish collection, street lighting, and schools. It is levied on residential properties based on their valuation band, which is determined by the value of the property as of a specific date. Each property is placed into one of eight valuation bands, and council tax rates are set by local authorities. Council tax bills are typically sent to the property’s occupants, who are responsible for paying the tax, although exemptions and discounts may apply in certain circumstances. Council tax revenue is an important source of funding for local government services and infrastructure maintenance.

This replaced the Community Charge (unpopularly known as the poll tax) on April 1, 1993.

One bill is sent to individual domestic properties each year – the amount payable depending on the valuation banding of the property, how many people are resident and any benefits or reductions the payer or other residents may be entitled to.

All domestic or part domestic properties are valued in bands A to H. Band A is for prices up to £40,000, band H for properties worth more than £320,000. The bands are based on the market value of the property as of April 1, 1991.

If you’ve just purchased a property and you believe its valuation banding to be wrong, you have six months in which to appeal the existing banding.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 29th March 2024.