Introduced in 1993 by the Local Government Finance Act 1992 as a replacement for the unpopular Community Charge, council tax is based on the market value of a home rather than the rental value. The amount to pay is determined by the local council, with figures dependent on a variety of things such as the sum that the council have to raise and the property’s valuation band. Having said this, there are certain properties that are exempt from paying council tax, including those that are:
But, after your local council has collected council tax from residents, where does the money go? The way in which council tax is spent by councils depends to some degree on how much they collect, with rises in tax often due to shortfalls brought about by cuts, and taxes are thus often raised to compensate for this. However, much of the revenue taken from council tax is used for schools funding, refuse and recycling collections, libraries and leisure centres to be used by residents in the area. To get a wider overview of council tax and council tax bands, you can simply read the council tax overviews across this section of our website.