Council tax

The Council Tax is the main form of local taxation in England, Scotland and Wales. It is paid by residents to the local authority. It was introduced in 1993 (by way of the Local Government Finance Act, 1992) as a successor to the unpopular Community Charge or Poll Tax, introduced in 1989 in Scotland and in 1990 in England and Wales.

Related Topics:
England - Scotland - Wales - 1993 - 1992 - Poll Tax

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The base for the tax is residential property. Each dwelling is allocated to one of eight bands coded by letters A through H on the basis of its assumed capital value (as of 1 April 1991). Each local authority sets a tax rate expressed as the annual levy on a B and D property inhabited by two liable adults. This decision automatically sets the amounts levied on all types of households and dwellings.

Related Topics:
1 April - 1991

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2005 will see the first revaluations since 1991 of property in England and Scotland for council tax purposes. Bills based on the new valuations wll be issued in 2007. In Wales, tax bills based on the property revaluations done using 2003 prices were issued in 2005. Because of the surge in house prices over the late 1990s and early 2000s, more than a third of properties in Wales found themselves in a band higher than under the 1991 valuation. Some properties were moved up 3 or even 4 bands with consequent huge increases in the amount of council tax demanded. Some properties were moved into new band I at the top of the price range. Only 8% of properties were moved down in bands.

Related Topics:
2005 - 1991 - 2007 - 2003 - 1990s - 2000s

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Later in September 2005, it was announced that the revaluation in England has been postponed until 2009 or 2010. See http://news.bbc.co.uk/1/hi/uk_politics/4262590.stm At the same time, the Terms of Reference of the Lyons Inquiry were extended and the report date pushed out to December 2006.

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Although it is the only tax which is set by local government, the Council Tax contributes only a small proportion (25%, on average) of local government revenue. The majority comes from central government grants and from business rates which are collected centrally and redistributed to local authorities.

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Council Tax is divided into a number of components. Depending upon where the dweller lives, there can be a separate charge made by the Greater London Authority, County Councils, Police Authorities, Fire Authorities, Transport Authorities, National Park Authority, District Councils, Scottish Water and Civil Parishes. These may all set their precepts independently.

Related Topics:
Greater London Authority - County Council - Police Authorities - Fire Authorities - Transport Authorities - National Park Authority - District Council - Scottish Water - Civil Parish

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