Council Tax

Taxation in the United Kingdom
UK Government Departments
HM Treasury HM Revenue and Customs
UK Government
VAT Income tax PAYE National Insurance Health and Social Care Levy (proposal abolished) Corporation tax Capital gains tax Motoring taxes Inheritance tax Stamp Duty Stamp Duty Reserve Tax Stamp Duty Land Tax Annual Tax on Enveloped Dwellings Insurance Premium Tax Air Passenger Duty Petroleum Revenue Tax Aggregates Levy Various alcohol- and gambling-related duties Bingo Duty Climate Change Levy Landfill tax Machine Games Duty Tobacco Duty Vehicle Excise Duty
Scottish Government
Revenue Scotland Scottish income tax Land and Buildings Transaction Tax Scottish Landfill Tax Air Departure Tax
Welsh Government
Taxation in Wales Welsh Revenue Authority Welsh Rates of Income Tax Land Transaction Tax Landfill Disposals Tax
Local Government
Council Tax Domestic rates in Northern Ireland Business rates in England Business rates in Wales Business rates in Scotland Business rates in Northern Ireland
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Council Tax is a local taxation system used in England, Scotland and Wales. It is a tax on domestic property, which was introduced in 1993 by the Local Government Finance Act 1992, replacing the short-lived Community Charge (also known as "poll tax"), which in turn replaced the domestic rates. Each property is assigned one of eight bands in England and Scotland (A to H), or nine bands in Wales (A to I), based on property value, and the tax is set as a fixed amount for each band. The higher the band, the higher the tax. Some property is exempt from the tax, and some people are exempt from the tax, while some get a discount.

In 2011, the average annual levy on a property in England was £1,196 (equivalent to £1,841 in 2023).^[1] In 2014–15, the tax raised enough money to cover 24.3% of council expenditure.^[2]

Council Tax is difficult to avoid or evade and therefore has one of the highest collection rates of any tax, with in-year collection rates of 97.0% in 2014–15.^[3]