COUNCIL tax is collected by local councils to pay for local services and amenities, including policing, road maintenance, refuse collection, libraries and recreation grounds. It applies to all domestic properties, including council properties, mobile homes or houseboats, whether owned or rented.

Bands

How much council tax you pay depends on your home’s valuation band – the lower the value of your home, the less you pay. The bands are based on the property’s value on April 1, 1991, not their current value. Each council sets its own rates within these bands. See below:

A: up to £40,000

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B: over £40,000 and up to £52,000

C: over £52,000 and up to £68,000

D: over £68,000 and up to £88,000

E: over £88,000 and up to £120,000

F: over £120,000 and up to £160,000

G: over £160,000 and up to £320,000

H: over £320,000

Disputing your home’s band

Your local council sets your band, but there has been no revaluation of homes’ council tax bands since 1991 – and it is possible that many people’s homes may actually be in the wrong band.

If you think your house is in a higher band than it should be, you can tell your council – but be aware that disputing your home's valuation band can lead to you (and your neighbours) paying more council tax, as well as less. Be absolutely certain that you have evidence your house is in too high a band before challenging your council.

To help with this, you can check the council tax bands of your neighbours on the Valuation Office Agency website. This may be useful to find out if an identical house in the same street is in a lower council tax band than yours.

You will also need to work out what your house is worth now, and what is was worth in 1991. Websites such as propertysnake.co.uk tell you how much houses in your area are selling for. Then go to a property valuation calculator, such as Nationwide's, to find out how much the property would have been worth in 1991.

Discounts and exemptions

There are discounts for low-income households, the disabled, those whose property is a second home, and people who live on their own. For example, if you are the only adult living in a property you are eligible for the single person's discount and your council tax bill will be reduced by 25 per cent.

Certain people are exempt from council tax, so if you live with one of the following you will still be eligible for the single person discount: prisoners, apprentices, those under 25 and receiving training from Learning and Skills Council, full-time students, student nurses, those living in a hospital, those who are severely mentally disabled, and those who live with, and care for, a person with a disability claiming certain benefits.

For furnished second or holiday homes, councils must offer a second-homes’ discount of between 10 per cent and 50 per cent. If you have a second home because of the nature of your job, the council must give you a 50 per cent discount.

Councils can offer an empty-homes discount of up to 50 per cent for dwellings that have been empty and unfurnished for longer than six months.

Your bill may also be reduced if your home has certain features for a disabled person. These include an additional bathroom or kitchen required for the disabled person; any other room (except a toilet) which is predominantly used by the disabled person; or extra space inside your home to allow for the use of a wheelchair.

If your home is eligible, your bill will be reduced to that of a property in the valuation band immediately below your own band.

Council tax benefit

You may get council tax benefit if you pay council tax and your income and capital (savings and investments) are £16,000 or less. The benefit can be as much as a 100 per cent exemption, but this depends on your council’s policy – ask your council for an application form, or download one from its website.

Your bill

You normally receive your council tax bill in March or April. The bill states the amount you have to pay and how this has been worked out, including discounts. Normally, you will be offered payment in ten installments, although that number will be reduced if the bill is issued after the end of April.

Disputing a bill or discount with your Council

If you disagree with your bill because you think you are not liable for council tax, or you should receive a discount, or your home is exempt, then you should write to the council and explain your situation – you may need to provide evidence in support of your claim.

The council has two months to make a decision. If you still disagree with the council, or if it has not acted within the two-month period, you can appeal to a valuation tribunal.

This involves making an appeal to the tribunal in writing outlining your dispute. Your case may be dealt with by an exchange of written representation; otherwise, the tribunal will arrange a formal hearing to settle the case, which will last no more than a day.

A tribunal hearing costs you nothing, unless you choose to employ a solicitor or other person to present your case. If the tribunal decides in your favour, your council will revise your bill and adjust your payments accordingly.

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Five websites

Direct Gov

The Valuation Office Agency

Citizens Advice

Department for Work and Pensions – Council Tax Benefit

Age Concern guide to Council Tax