Understanding Council Tax (updated April 2020)
Updated 16 September 2020
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This publication is available at https://www.gov.uk/government/publications/joint-service-housing-advice-office-leaflet-index/understanding-council-tax
- Serial number: JSHAO/15
- Date: March 2020
- Review date: April 2021
What is Council Tax?
Council tax is a system of local taxation collected by Local Authorities. It is a tax on domestic property. Some property is exempt from council tax. Some people do not have to pay council tax and some people get a discount.
This is a tax on domestic property collected by the Local Authority to pay for local services such as schools, rubbish collection, roads and street lighting.
While you are accommodated in Service Accommodation you are exempt from paying Council Tax but instead you pay a Contribution In Lieu Of Council Tax (CILOCT) as shown on your pay statement.
When you move out of service accommodation into your own home, whether it is rented or purchased, you need to register with the Local Authority to pay the correct rate of council tax for your property.
The valuation bands for your home in England and Scotland are based on the price a property would have achieved if it had been sold on the open market on 1 April 1991. In Wales, assessments are based on the value of property on 1 Apr 2003.
A full Council Tax bill is based upon 2 or more adults living in a household.
Paying the bill
You will usually have to pay Council Tax if you are 18 or over and own or rent a home. Spouses and partners who live together are jointly responsible for paying the bill.
When payments are due
Your Council Tax bill tells you:
- how much you have to pay for the year
- how that amount has been worked out
- the dates you have to pay
You will get a new bill if the amount of Council Tax you have to pay changes during the year.
Ways to pay
Some Local Authorities let you pay your Council Tax online or over the phone. You can usually also pay:
- by post
- by direct debit or standing order
- online
- in person at your Local Authority’s offices
- using ‘Paypoint’, ‘Payzone’ or ‘Quickcards’ for cash payments at post offices, banks, newsagents and convenience stores
Check with your Local Authority to find out how to pay.
Council Tax exemptions
A full Council Tax bill is based on at least 2 adults living in a home.
You’ll get 25% off your bill if you count as an adult for Council Tax and live on your own. You’ll also get a discount if you live with people who don’t count as adults for Council Tax.
Who doesn’t count?
The following individuals are not counted as adults for Council Tax:
- children under 18
- people on some apprentice schemes
- 18 and 19-year-olds in full-time education
- full-time college and university students
- young people under 25 who get funding from the Skills Funding Agency or Young People’s Learning Agency
- student nurses
- foreign language assistants registered with the British Council
- people with a severe mental impairment
- live-in carers who look after someone who isn’t their partner, spouse or child
- diplomats
For further information contact your Local Authority’s council tax department or read more information on Council Tax on gov.uk.
Contact the Joint Service Housing Advice Office on the Civilian number: 01252 787574 and Military number: 94222 7574. You can also email the office on rc-pers-jshao-0mailbox@mod.gov.uk.