Kara Sears
In the UK, liability for Council Tax is determined by the Local Government Finance Act 1992 and the Council Tax (Administration and Enforcement) Regulations 1992. This means that Council Tax is a statutory obligation and is not dependent on an individual's consent or a contractual relationship with the council. While some people are exempt from paying Council Tax and others may be eligible for a discount, failure to pay Council Tax when liable can result in enforcement action and, in extreme cases, even a prison sentence.
| Characteristics | Values |
|---|---|
| Legal basis | Local Government Finance Act 1992, Council Tax (Administration and Enforcement) Regulations 1992 |
| Liability | Determined by the Local Government Finance Act 1992, confirmed by the Council Tax demand notice issued each year |
| Contractual obligation | Not required; no individual consent is needed as it is made by an elected Parliament on behalf of the country |
| Signature requirement | Not required for billing or court summons |
| Exemptions | Students, empty homes (if already exempt), armed forces accommodation, annexes, caravans |
| Discounts | Based on the number of adults living in the home, some people may be 'disregarded' |
| Payment plans | Typically 10 instalments, but can request 12 instalments or discuss other options with the local council |
| Appeals | Can be made to the valuation tribunal, but do not allow withholding of payment |
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What You'll Learn
Who is liable to pay council tax
In the UK, liability for Council Tax is determined by the Local Government Finance Act 1992. This statute sets out a local authority's right to demand Council Tax to fund services and outlines who is liable to pay.
The liable person is the person whose name appears on the Council Tax bill. In most cases, this is the person occupying the property. There can be one liable person or multiple, depending on the circumstances. If there is more than one person living in a property, a system called the 'hierarchy of liability' is used to work out who is the liable person. The person at the top, or nearest to the top, of the hierarchy is the liable person.
Spouses and partners who live together are jointly responsible for paying the bill. If two or more people are at the same level in the hierarchy, they are jointly and severally liable for the charge. This means they are jointly responsible for ensuring the bill is paid. If the bill remains unpaid, the council may seek to recover the Council Tax from any or all of the liable persons.
Some people are not counted ('disregarded') when working out how many people live in a property. This means you might be able to apply for a discount on your Council Tax bill. You need to apply for a Council Tax discount or exemption, even if you are disregarded. You'll get 50% off your bill if everyone living in your household is disregarded. You'll get 25% off your bill if you pay Council Tax and either:
- You're the only adult in the property
- You or someone else in the property has a qualifying disability
- Someone in the property is a live-in carer
- Someone in the property is in prison (except those in prison for not paying Council Tax or a fine, or those in prison awaiting trial)
You won't have to pay Council Tax on your second home if all of the following apply:
- It will be available as a holiday let for at least 140 days in the current tax year
- It was advertised as a holiday let for at least 140 days in the last tax year
- It was rented out as a holiday let for at least 70 days in the last 12 months
Some property is exempt from Council Tax altogether. It might be exempt for only a short period, for example, six months, or indefinitely. Property that is exempt includes:
- Property that is unoccupied because the person who lived there now lives elsewhere due to needing care, for example, in hospital, in a care home, or with relatives
- Property that is unoccupied because the person who lived there has gone to care for someone else
- Any property that only students or Foreign Language Assistants on the official British Council programme live in
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Council tax and contract law
Council tax is a system of local taxation collected by local councils. It is a tax on domestic property, with each home given a council tax valuation band by the Valuation Office Agency (VOA). The band is based on the value of the home on 1 April 1991, and a different amount of council tax is charged for each band.
The requirement to pay council tax is determined by legislation. The council's duty and authority to levy, collect and enforce council tax is governed by statute, and it is not subject to other enactments such as the Bills of Exchange Act 1882, Consumer Credit Act 1974, Companies Act 2006 or Consumer Rights Act 2015. It is not governed by any contract, and there is no requirement for those subject to council tax to agree or consent to the payment of council tax before it must be paid.
Some people argue that they do not have to pay council tax because they have not agreed to a contract with the council, or because they are a 'freeman' or 'Freeman of the Land'. However, these arguments are incorrect. A signature or agreement from a resident is not necessary for council tax—it is a tax, not a contract. Being a 'freeman' does not exempt anyone from paying council tax, and there is no legal basis for this argument.
If you are unsure about whether you are liable for council tax, you should contact your local council. If you disagree with a decision made by the local council, you can appeal to the valuation tribunal, an independent body.
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Council tax and consent
Council tax is a system of local taxation collected by local councils. It is a tax on domestic property. The law states that you must pay council tax if you are over the age of 18 and you are the liable party. The liable party is determined by the Local Government Finance Act 1992 and Council Tax (Administration and Enforcement) Regulations 1992.
The legislation that covers council tax is freely available from the government website legislation.gov.uk. However, there is misleading information on the internet regarding the legality of council tax. Some people believe that council tax is a contract and requires a legal contract and signatures indicating an agreement. This is not the case. Council tax is a tax, not a contract, and no signature or agreement from a resident is necessary for the billing of council tax.
The council does not require consent to process data that is necessary for the performance of a task carried out in the public interest or in the exercise of the controller's official duty. The billing and collection of council tax are conferred on the authority by legislation. This is in keeping with Article 6 (c) and (e) of the General Data Protection Regulations.
Some people are exempt from paying council tax, and some people get a discount. For example, students do not have to pay council tax. If you are unsure about whether you qualify for a discount or exemption, you should contact your local council. If you withhold payment, enforcement action will be taken against you.
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Appealing a council tax bill
In the UK, liability for Council Tax is determined by the Local Government Finance Act 1992. This means that you do not have a choice about whether you are liable for Council Tax. Being a 'freeman', for example, does not exempt anyone from paying Council Tax.
If you are unhappy with your council's decision regarding your Council Tax bill, you may be able to appeal. Here are some steps you can take:
Contact the Council
First, write to your council, stating your reasons for believing the bill is incorrect and providing any relevant information or documentation. The council has two months to reply.
Contact the Valuation Office Agency
If you believe you should be receiving a discount or exemption, or if you wish to challenge your Council Tax band, you can contact the Valuation Office Agency.
Appeal to the Valuation Tribunal
If you disagree with the council's decision or do not hear back within two months, you can appeal to the Valuation Tribunal. This is a free, independent service. The Tribunal will send you a notice of the hearing, giving you at least four weeks' notice. It is advisable to attend the hearing in person, but you can request that the Tribunal decides the case in your absence.
Late Appeals
You may be able to submit a late appeal if you missed the deadline due to circumstances beyond your control.
Please note that you must continue paying the amounts listed in your original bill until a new bill arrives. Also, the Valuation Tribunal cannot deal with payment disputes, which are handled by magistrates' courts.
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Council tax and VAT
Council tax is a system of local taxation collected by local councils. It is a tax on domestic property and is based on at least two adults living in a home. Some property is exempt from council tax, and some people don't have to pay or are eligible for a discount. All homes are given a council tax valuation band by the Valuation Office Agency (VOA), based on the value of the home on 1 April 1991. The band determines the amount of council tax charged.
Liability for council tax is determined by the Local Government Finance Act 1992. This statute sets out a local authority's right to demand council tax to fund services and outlines who is liable to pay. The legislation covers liability to pay, billing, and recovery of council tax. While some believe that consent or a contractual relationship with the council is required to be liable for council tax, this is not the case. Acts of Parliament, or statutes, set out the law, and no individual contract is required.
If you are unsure about whether you qualify as an adult for council tax, you may need a declaration from your employer stating that you are in training that leads to a recognised qualification. If you do not contact your local council about this, you could be fined.
Local authorities are required to register for VAT if they make any taxable supplies, although this is only enforced when output tax is expected to reach £1,000 per year. The term "local authority" includes various councils and joint committees. For VAT purposes, the general rule is that when a public body is funded by public expenditure to act for the public good, it is not engaging in business activities and is outside the scope of VAT. Conversely, when a public body supplies goods or services and is registered or required to be registered for VAT, these activities fall within the scope of VAT.
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Frequently asked questions
Yes, by law, you have to pay council tax if you are liable for it. Liability for council tax is determined by the Local Government Finance Act 1992 and the Council Tax (Administration and Enforcement) Regulations 1992.
Liability for council tax is determined by the local council. Generally, you'll have to pay council tax if you're 18 or over. A full council tax bill is based on at least two adults living in a home. Some people are not counted when working out how many people live in a property, so you might be able to apply for a discount.
Council tax bills are usually sent out in April and you are asked to pay in 10 instalments. However, you have the right to ask to pay in 12 instalments instead, and local councils might accept weekly or fortnightly payments.
