Article: Annual notification of council tax Article Body What is council tax? Council tax is a local property based tax, set by the council, and charged on the borough's domestic dwellings. The net revenue raised from council tax is used to help pay for the spending on services such as education, Social Services, highways and refuse collection. Contributions towards the cost of the police, passenger transport, fire and civil defence and spending in the borough's parishes are also collected through council tax precepts and paid over to those bodies. What counts as a dwelling? Houses, flats, bungalows and maisonettes count as dwellings provided they can at least partly be used for domestic purposes. Separate and self-contained annexes also count as a separate dwelling for council tax purposes. Mobile homes and houseboats count as a dwelling if they are a main home. Certain other properties, such as houses, bedsits or some hostels that are occupied by more than one household, who share cooking and washing facilities, are generally only treated as a single dwelling. Council tax banding All domestic dwellings are banded in one of eight valuation bands. These range from band A to band H based on the value of the property and determine the amount of council tax payable. Property bandings are set by the HM Revenue and Customs' Valuation Office Agency (VOA), and not the council, and valuations are based on the capital value of the properties at 1 April 1991. New properties built since 1 April 1991 are therefore valued as if they also existed in 1991. Full details of property bandings in England and Wales are available on the Valuation Office Agency website. The eight valuation bands existing in England are determined as follows: Property Band Range of Values Band D Proportion A Up to £40,000 6/9 B Over £40,000 and to £52,000 7/9 C Over £52,001 and to £68,000 8/9 D Over £68,001 and to £88,000 9/9 E Over £88,001 and to £120,000 11/9 F Over £120,001 and to £160,000 13/9 G Over £160,001 and to £320,000 15/9 H Over £320,001 18/9 The council as a 'billing authority' is required to set a council tax charge based on band 'D' dwellings. Dwellings in other bands attract a charge based on a proportion of the band D charge. So the charge for a band A property is 6/9 of that of a band D and band B is 7/9 of that of a band D and so on. Who is liable for council tax? Council tax is payable on most dwellings and a single bill will be issued for each one. Regulations specify the person who is responsible for the payment of council tax and this will normally be the person occupying a property as their main home. More than one person can be liable for payment and in such circumstances each person would have a joint and several liability for payment and so bills are issued in joint names. There are some exceptions where the responsibility for payment of council tax rests with the owner of the property. A strict 'hierarchy' of liability to pay has been established by legislation. The person liable to pay council tax on a dwelling is the person who ranks highest on the following list: a resident freeholder (the owner of an owner-occupied property) a resident leaseholder (including assured tenants) a resident statutory secure tenant a resident licensee a resident (including a squatter) the owner (where a dwelling has no residents) A 'resident' is a person aged 18 or over who lives in a dwelling which is their sole or main residence. Tenants occupying properties managed by Berneslai Homes will be responsible for council tax as will, in the main, the occupants of private-rented property. Sole or main residence In most cases a person will have only one residence and a decision on where their sole of main residence is, cannot be disputed. Where a person has more than one residence the council is required to decide where the main residence is. In these cases consideration will be given to factors such as where a spouse or partner or children reside and each case will be considered on the facts presented. If you have more than one residence you should complete the council tax - sole or main residence form. Joint and several liability Where two or more people hold a similar interest in a dwelling (for example they rank equally in the hierarchy of liability) they will each be jointly and severally liable (and receive a joint bill) to pay council tax in respect of the dwelling. Married and unmarried couples are jointly and severally liable even if they do not have an equal interest in the dwelling. An exception may apply where a person is classed as being severely mentally impaired (SMI) or a full time student. Such a person cannot be held jointly liable if there is someone else with the same status and legal interest in the property who is not severely mentally impaired or a full time student. Any alterations to the circumstances determining council tax liability must be notified to the Council Tax section immediately - see the council tax account enquiries link. Your council tax bill The council is required to 'levy and collect' council tax in respect of the dwellings in it's area by: setting an annual charge each year issuing a demand notice together with accompanying information including on the demand notice certain assumptions about any discounts allowed any reductions for disabled persons and other matters specified in the regulations providing instalment payments, normally payable over ten payments, the first being due not less than fourteen days from the issue of the demand notice Council tax is payable on occupied and unoccupied domestic properties although certain exemptions may apply. The bill is made up of two parts of which 50% of the charge relates to the 'property element' and the remaining 50% relates to the 'person element' based on the use of the dwelling. The 50% personal element is calculated on the basis that two or more people live in the property. The standard amount of council tax payable on a domestic property depends upon the property banding determined by the VOA and the number of people who live there. For details of the council tax charge set in your area click council tax - charges. Council tax reductions The council will, unless otherwise notified, assume that there are two adults (aged 18 years or over) living in a dwelling as their main home and as such a full 100% charge would apply to the property. However, many households may not have to pay full council tax because certain circumstances could entitle them to a discount, exemption or reduced banding. A discount could apply if, for example a property is not used as a main home or if only one person lives there. Certain groups of people can also be disregarded from the calculation of the charge. For more information on council tax discounts click on council tax discounts. Some domestic properties can become exempt from council tax charges in certain circumstances. Generally exemptions apply to properties left empty for specific reasons, for example where they are undergoing repair/structural alteration or it has been left unoccupied due to death or a person receiving care elsewhere. In some cases an exemption can apply when the property remains occupied for example where it is occupied wholly by students or by a person aged under 18. For more information on council tax exemptions click on council tax exemptions. Where a home has been adapted for the needs of someone with a disability who lives in the home, the council may be able to grant a discount to reduce the council tax charge. The adaptions must be essential or of major importance to the well being of the disabled person because of the nature and extent of their disability. For more information on council tax reductions for the disabled click on council tax band reductions. Council tax benefit People who are on a low wage or Income Support, Job Seekers Allowance, Employment and Support Allowance, Pension Credit, State Retirement and/or Works Pension may be able to claim council tax benefit to reduce the amount payable. The amount of council tax benefit that could be received is dependent on a number of factors including household membership, weekly income, savings and the amount of council tax payable. More information about claiming council tax benefit can be obtained by accessing new claims for council tax benefit. Claims cannot normally be backdated and so an application must be sent as soon as possible to avoid any loss in benefit entitlement. Second adult rebate Another form of council tax benefit takes account of the financial circumstances of other people who may live in a property, but who are not responsible for council tax. Second adult rebate can apply if you are liable to pay council tax on your own but someone (one or more adults aged 18 or over) on a low income lives with you. This could include adult children. Second adult rebate cannot be granted where the other adult is a partner or a person paying rent to you. More information about second adult rebate can be obtained by accessing new claims for council tax benefit. Council tax appeals You can, in certain circumstances, appeal against the banding allocated to your property and against decisions made by the council about whether you are liable and how much you are liable to pay. For more information or advice click council tax - appeals. Methods of payment Council tax can be paid by a variety of methods. For more information on the methods of payment that are available click on council tax account enquiries. Other information For other helpful information, includng: our contact details methods of payment opening hours Click on council tax account enquiries. You can also view your account online by clicking view your council tax account. Additional information To learn more about our compliments, comments and complaints process please see general complaints. Service standards Details of the councils service standards in relation to council tax can be obtained by clicking on council tax service standards. Processing of information The proper processing of information is important to us. Click to view our Fair Processing Policy. Other useful websites Valuation Office Agency Department of Communities & Local Government Berneslai Homes Citizens Advice Bureau