Council Tax Explained for Immigrants in the UK

How Council Tax Works

Council tax is charged per property by your local council. GOV.UK says three things determine the bill: the valuation band for your home, how much your local council charges for that band, and whether you can get a discount or exemption. Because the second of those is set locally, there is no single national figure for what council tax costs.

Properties are placed in bands. GOV.UK says the band reflects the price the property would have sold for on the open market on 1 April 1991 in England, and 1 April 2003 in Wales. There are eight bands in England and nine in Wales. Band A properties pay the least. Scotland has its own bands, looked up through the Scottish Assessors.

Northern Ireland does not have council tax. Homes there pay domestic rates instead, under a separate system.

GOV.UK says you will usually have to pay council tax if you are 18 or over, and that a full bill is based on at least 2 adults living in a home. Spouses and partners who live together are jointly responsible for paying it.

What Council Tax Funds

• Local council services (rubbish collection, recycling, street cleaning)
• Police services
• Fire and rescue services
• Social care and children's services
• Road maintenance and street lighting
• Libraries and leisure facilities
• Planning and environmental services

Registering for Council Tax

When you move into a new property, contact your local council to register for council tax. You usually need to provide your name, move-in date, and property address. Most councils allow online registration.

GOV.UK says the cost is usually split into 10 monthly payments, and that if you are having trouble paying you should contact your local council immediately — they can help, for example by spreading your payments over 12 months instead of 10.

You can usually pay online. GOV.UK adds that you can also use "Paypoint", "Payzone" or "Quickcards" for cash payments at post offices, banks, newsagents and convenience stores, and that the bill itself lists which other payment methods your council accepts. Your bill tells you how much you have to pay for the year, how the amount was worked out, and the dates you have to pay.

Discounts and Exemptions

The system works through people being "disregarded": not counted when working out how many adults live in a property. GOV.UK says you are disregarded if you are:

• under 18 years old;
• on certain apprentice schemes;
• 18 or 19 years old and in full-time education;
• a full-time student at college or university;
• under 25 and getting funding from the Education and Skills Funding Agency;
• a student nurse;
• a foreign language assistant registered with the British Council;
• severely mentally impaired;
• a live-in carer for someone who is not your partner, spouse, or child under 18;
• a diplomat.

The discounts that follow from that are:

• 25% off if you pay council tax and either you live on your own, or everyone else in your home is disregarded.
• 50% off if everyone living in your household is disregarded.

GOV.UK is clear that you have to apply: "You need to apply for a Council Tax discount or an exemption, even if you're disregarded." It also says that if you get a discount by mistake you must contact the council, or you could get a fine, and the council may ask you to pay the discount back.

Full-time students

GOV.UK says households where everyone is a full-time student do not have to pay council tax, and that if a bill arrives anyway you can apply for an exemption. To count as a full-time student, the course must last at least 1 year and involve at least 21 hours of study a week. For a qualification up to A level where the student is under 20, the course must last at least 3 months and involve at least 12 hours of study a week. Where someone in the household is not a full-time student, a bill is issued, but the household may still qualify for a discount.

Disability and severe mental impairment

Under the Disabled Band Reduction Scheme, a bill is reduced to the next lowest band where the household lives in a larger property than it would need if the disabled person were not disabled — for example an extra bathroom, kitchen or other room needed for that person, or extra space inside for using a wheelchair. A property already in Band A gets a 17% discount instead. The property must be the main home of at least one disabled person, who can be an adult or a child and does not have to be the person paying the bill.

Where someone qualifies as severely mentally impaired — which needs a certificate from a medical professional and eligibility for certain benefits — GOV.UK sets out a 100% discount if they live on their own, or if every other adult in the household is also severely mentally impaired or a full-time student; a 50% discount if everyone else in the household is disregarded; and a 25% discount for someone living with a person who qualifies, where there are no other adults or everyone else is disregarded.

Second homes and empty properties

These go the other way. GOV.UK says a second home is usually charged council tax, that the council decides on any discount, and that you can be charged up to 2 times the normal bill — the second homes premium. An empty home is also usually charged, and where it has been empty for at least one year an empty home premium can apply, rising to up to 4 times the normal bill where it has been empty for at least 10 years. The rules are different in Scotland.

Council Tax Reduction

Council Tax Reduction is means-tested help with the bill for people on a low income, run by each council. It is not a discount for a category of person but a reduction based on income, and it appears on the Home Office list of public funds as "Council Tax Reduction Schemes".

What Happens If You Do Not Pay

GOV.UK sets out the sequence:

1. If you miss a payment, the council sends a reminder notice giving you 7 days to pay.
2. If you do not pay within those 7 days, you have to pay the whole year's council tax instead.
3. You get a maximum of 2 reminder notices in a financial year, which runs from 1 April to 31 March. If you miss a payment for a third time, the council sends a final notice saying you must pay the whole year's council tax.
4. If the whole year's council tax is not paid within 7 days, the council may take legal action, and can ask a magistrate for a "liability order".

With a liability order, the council can pursue deductions from wages or from benefits, send bailiffs to seize property, or take further court proceedings which can result in up to 3 months in prison where someone cannot show an inability to pay or a valid reason for not paying.

GOV.UK's own advice on the payments page is to contact your local council immediately if you are having trouble paying: they can help, for example by spreading payments over 12 months instead of 10.

Council Tax and Immigration Status

Council tax is a tax, not a benefit, so it is not on the Home Office list of public funds. The liability applies regardless of immigration status: GOV.UK simply says you will usually have to pay if you are 18 or over.

Council Tax Reduction is the other way round. The Home Office list of public funds includes "Council Tax Reduction Schemes" under its "Other benefits" heading, alongside Child Benefit and social housing and homelessness assistance. So someone whose permission carries a no recourse to public funds condition is subject to that condition in relation to Council Tax Reduction, while still being liable for the council tax itself.

The discounts described above are not public funds. A single-person discount, a student exemption or the Disabled Band Reduction Scheme reduce the tax rather than pay a benefit, and they are not on the list.

For more on living costs in the UK, see our guide on the cost of living for immigrants. For housing options, see our guide on council housing.

Further Resources

Check your council tax band at GOV.UK. See also our guides on citizenship requirements, community groups, NHS access, and driving in the UK.

You may also find our Immigration Health Surcharge andUK Visa Fees: Complete Guide helpful.

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