[user104658]

Originally Posted by Kizzy

I think there are many more people in higher council tax band on lower or fixed incomes due to the huge jump in housing cost over the last 20yrs.

In my area houses that were 70k in 99 are 250k today.



Also in cute villages the cost of homes has rocketed due to city dwellers buying up 2nd homes.



I didn't think there was such a thing as 100% council tax exemptions. .. don't they pay £125?

Council tax band isn't based on current house prices, it's (bizarrely) based on the value the property would have had if sold in 1991. That includes houses built after 1991... They assess new builds and make an estimate of what they would have been sold at 30 years ago. It's like they bodged the system together out of cardboard and tape... But for better or worse... That's genuinely how it works.

As for 100% exemptions I think that depends on what services are included... I know that when I was on the bennies in England we paid zero council tax (but had a separate water bill) whereas when we moved to Scotland we paid a small fixed amount of council tax because water services in Scotland are built into council tax, and you didn't get that part paid through housing benefit.

I don't really know the system these days as benefits were still all separate things back then, and it's all Universal Credit now.

I think there will definitely be people on low incomes who don't benefit from the council tax rebates (or any of the NI/income tax changes) but will still be hit with doubling energy bills.

[bots]

Originally Posted by Toy Soldier

Council tax band isn't based on current house prices, it's (bizarrely) based on the value the property would have had if sold in 1991. That includes houses built after 1991... They assess new builds and make an estimate of what they would have been sold at 30 years ago. It's like they bodged the system together out of cardboard and tape... But for better or worse... That's genuinely how it works.

As for 100% exemptions I think that depends on what services are included... I know that when I was on the bennies in England we paid zero council tax (but had a separate water bill) whereas when we moved to Scotland we paid a small fixed amount of council tax because water services in Scotland are built into council tax, and you didn't get that part paid through housing benefit.

I don't really know the system these days as benefits were still all separate things back then, and it's all Universal Credit now.

I think there will definitely be people on low incomes who don't benefit from the council tax rebates (or any of the NI/income tax changes) but will still be hit with doubling energy bills.

I think i see where the problem is TS. Thats not how it is in england. I'm in a band e house, that is nice, but nothing outstanding. All property was regraded in england in the semi recent past, 1991 prices have long gone here as a marker

[user104658]

Originally Posted by bitontheslide

I think i see where the problem is TS. Thats not how it is in england. I'm in a band e house, that is nice, but nothing outstanding. All property was regraded in england in the semi recent past, 1991 prices have long gone here as a marker

I 100% guarantee the way Council Tax bandings work is still based on 1991 valuations. The rebanding was to check that the houses still match the valuation in terms of improvements to the house or area i.e. things that would have increased the value of the property whenever they happened. Extensions, conversions, etc.

The bandings are still relative to the average. Overall house price increases across the board do not increase council tax board. There can be some more dramatic changes in cities (gentrification; areas that used to be considered "rough" now being more desireable because of city proximity) or transport links (a new motorway link can turn an isolated village into a city-worker suburb over night) but it's not because of house price inflation.

If there have been no other changes, a band A house that was worth £35k 20+ years ago and is now worth over £100k will still be Band A.

https://www.gov.uk/guidance/understa...4d4f1bc1e380c6

One thing I have noticed though which is somewhat interesting, is that bands B and C seem to be exremely rare? Lots of Band A properties (flats, ex-council houses), and then it for the mostpart seems to jump straight to Band D/E .