Background Image
Table of Contents Table of Contents
Previous Page  10 / 27 Next Page
Information
Show Menu
Previous Page 10 / 27 Next Page
Page Background

10

3

The council tax system

The council tax system was introduced in England, Wales, and Scotland in 1993 as a successor to the

Community Charge, also known as the poll tax. Although council tax exemptions are determined based

on personal characteristics e.g. students, people living with a disability, it is primarily a property tax.

Dwellings in England are placed in one of eight bands (A to H), based on property value. The values used

were assessed by the Listing Officer on April 1, 1991. A revaluation in England was planned for 2007, but

postponed in 2005 by the Labour government and subsequently postponed indefinitely by the Coalition

government.

In Wales, a complete revaluation of properties was conducted in 2005. While many homes were placed

in different bands, the overall impact of the review was revenue neutral i.e. it neither boosted nor

diminished tax receipts.

In England, payment amounts for band D are set by local government and payment amounts for all other

bands are calculated as a proportion of the band D payment. Property value bands and payment ratios

are outlined i

n Table 1.

Table 1: Council tax bands in England

Source: Council tax information from the National Archives

In

England council tax receipts in the 2013/14 fiscal year accumulated to £23.4 billion. The Office for Budget

Responsibility (OBR) projects that receipts will rise to £24.0 billion in 2014/15 and reach £27.2 billion by

2019/20.

Property value (in

1991)

Tax amount as

proportion of

Band D

Tax amount as

percentage of

Band D

Average

2015

payment,

England (£)

Band A

£40,000 or under

6/9

67%

998

Band B

£40,001-£52,000

7/9

78%

1,165

Band C

£52,001-£68,000

8/9

89%

1,331

Band D

£68,001-£88,000

1

100%

1,498

Band E

£88,001-

£120,000

11/9

122%

1,830

Band F

£120,001-

£160,000

13/9

144%

2,163

Band G

£160,001-

£320,000

15/9

167%

2,496

Band H

£320,001 and

above

18/9

200%

2,995

© Centre for Economics and Business Research - Report Commissioned by Howard Cox for the FairHomeTax.UK Campaign