Council Tax

Council tax is a tax that you pay to your local council so they can fund services in your community. What you pay depends on where you live and the valuation band of your property. The current tax bands and qualifying valuations are as below:

Council tax band Property value
A Up to £40,000
B £40,001 to £52,000
C £52,001 to £68,000
D £68,001 to £88,000
E £88,001 to £120,000
F £120,001 to £160,000
G £160,001 to £320,000
H More than £320,000

How does council tax work?

Every property in the UK is put into a council tax band. This band is based on size, location, and the property’s value in 1991. The tax is then set as a fixed amount for each band. A few things can affect your bill amount:

  • You demolish part of your property
  • You convert flats into a single property, or vice versa
  • There are big changes in your local area
  • You stop/start working from home
  • Similar properties in your area have their band changed

What if I’m self-employed?

If you’re self-employed and working from home, you can claim a proportion of your council tax. What you claim should be based on the number of rooms you use for your self-employment business, and how much time you work from home. If you work from home for more than 25 hours per month, you may be entitled to a Home Office Allowance. This may reduce your council tax bill as your property is partially used for working, however this does have to be deemed ‘reasonable’ by HMRC. For example, you can’t claim that your living room is an exclusive workspace, as HMRC will presume that you also use it largely for leisure rather than a home office alone.

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