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What is Council Tax?

Council Tax is a compulsory sum of money charged to persons based on their property size, cost and location. Council tax money is used to part fund the services provided by the local government such as waste collection, the upkeep of local parks and amenities, the police, recycling, street cleaning, public transport and more.

The amount you pay will be charged on an annual basis (a pay monthly option is available) and will be calculated based on bands. The bands are classed A (lowest) to H (highest) and are determined by a number of factors including, property value, property size, the amount of people living in your property and the location.

Council tax is usually charged based on at least two adults living in the property and is payable by anyone over the age of 18 who owns or rents a property.

Reductions and Increases in the Amount You Pay

Reductions in council tax can be made if you:

  • Are under 18 years old
  • Are a full-time student
  • Live alone with persons under the age of 18
  • Own a home but it is vacant
  • Live alone
  • Increases to your council tax may be made if:

  • You add an annex or make an extension
  • You make any dramatic home renovations
  • You start working from home
  • There are significant changes in your local area
  • You split your property into self-contained flats
  • Make sure you check what council tax band your property falls into before applying for a mortgage so you can measure your affordability at https://www.gov.uk/council-tax-bands

    Disclaimer

    newhomesforsale.co.uk is an information platform and not a financial advisor, mortgage broker or mortgage lender. Always get financial advice before making significant decisions about your money, mortgages and buying a house.

    Council tax bill description

    Publish date 1st April, 2025
    Reading time: 4 minutes

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