Council Tax is a local taxation system used in England, Scotland and Wales. It 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.
What is council tax and who pays?
- A resident owner-occupier who owns either the leasehold or freehold of all or part of the property
- A resident tenant
- A resident who lives in the property and who is a licensee.
- Any resident living in the property,for example,a squatter
- An owner of the property where no one is resident.
What is the purpose of council tax?
Council tax is the local tax which helps councils pay for the services they provide. We use the money collected for council tax to maintain roads and street lighting, for services such as street cleaning and rubbish collection and for things like ‘Meals on wheels’.
How does council tax work?
Council Tax is an annual fee your local council charges you for the services it provides, like rubbish collection and libraries. Normally you pay it in 10 monthly instalments, followed by two months of not making any payments.
How do I avoid council tax UK?
You won’t pay Council Tax if:
- you live in a care home or hostel.
- you are in hospital on a permanent basis.
- your home is unoccupied because you have gone to live somewhere else to provide or receive personal care due to age, illness or disability.
Do you pay council tax if you rent?
Typically, council tax must be paid by the person living in the property. So yes – you do pay council tax if you rent; the responsibility sits with the tenant, not the landlord.
Is council tax paid per person?
Who has to pay council tax. Usually one person, called the ‘liable person’, has to pay council tax. Nobody under the age of 18 can be a liable person. Usually, the person living in a property will be the liable person, but sometimes it will be the owner of the property who will be liable to pay.
What happens if you don’t pay council tax?
If you’ve missed a Council Tax payment, you’re in ‘arrears’ – this means you owe money to your council. You’ll have to pay court costs and possibly bailiff fees as well as your debt, which can add hundreds of pounds to your bill. Council Tax arrears is a ‘priority debt’.
Who pays council tax on rented?
In most cases the tenant will be liable for paying the council tax bill. If a property is rented out to a single person over the age of 18, they are solely responsible for paying the tax. If it is rented to a couple, or adults who are sharing, they are jointly responsible.
Can you go to jail for not paying council tax?
You can be sent to prison for up to 3 months if the court decides you don’t have a good reason to not pay your Council Tax and you refuse to do so. If you can’t afford to make payments to your arrears, then the local authority can ask for your committal to prison.
Is council tax paid monthly or yearly?
Payment of council tax is usually by 10 monthly instalments from April to January, but you can choose to pay 12 instalments over a full year.
Why is council tax so high?
Why is council tax always increasing? Local authorities have consistently raised council tax levels for their residents. Councils have claimed this is due to government cuts (most notably, the austerity programme of the 2010s), as the grants given to them by central government were reduced.
Do you pay council tax if unemployed?
You can claim Council Tax Support if you are unemployed or on a low income and are liable to pay Council Tax for your home. How much you would be entitled to will depend on you and your household’s income and circumstances.
Do you pay council tax for an empty house?
If you own or rent a property that becomes empty and unfurnished, you can apply for a 100% council tax discount for one month from the date it first became empty and unfurnished. If the property remains empty and unfurnished after one month, the full council tax becomes due and you will have to pay the full charge.
How can I reduce my council tax?
Check if you can get a discount on your council tax. You might get a discount automatically on your council tax bill.