Tax - In Scotland

This information applies to England and Scotland

What is council tax

Council tax is a system of local taxation collected by local authorities. It is a tax on domestic property. Generally, the bigger the property is, the more tax will be charged. Some property will be exempt from council tax.

Valuation bands

Each local authority keeps a list of all the domestic property in its area. This is called the valuation list. Each property is valued at April 1991 prices and put into a valuation band. A different amount of council tax is then charged on each band. The valuation bands are:-

In England:

In Scotland:

Finding out what band a dwelling is in

To find out what band a dwelling is in you can:-

• inspect a copy of the valuation list (see below)
• look at the council tax banding lists published on the internet by the Valuation Office Agency at www.voa.gov.uk
• check with your local authority in advance of receiving a council tax bill
• if you are the liable person, you can also find the valuation band from the council tax bill or from an alteration to the valuation list by the listing officer (for more information about who is a liable person see under heading Who has to pay council tax).

A copy of the valuation list is kept at the local authority's main offices and is available for public inspection. Local authorities may also make the list available in other offices, including libraries. You can look at and make copies of the valuation list at the local authority's office or at the local valuation office. There may be a small charge.
If an alteration is made to the valuation list, including adding a new dwelling to the list, the listing officer will inform the liable person.

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Properties exempt from council tax

Some property is exempt from council tax altogether. It may be exempt for only a short period, for example, six months, or indefinitely.

Properties which may be exempt include:

• property which is empty. This means it has to be unoccupied. In England, the property also has to be substantially unfurnished and in Scotland, unfurnished. The exemption applies for a maximum of six months and the property has to be vacant for the whole of this period (although up to six weeks of occupation during the period is allowed)
• property which is vacant because it needs major repairs or alterations to make it habitable. The exemption applies for a maximum of 12 months whether the work is actually finished or not by then
• condemned property
• property which has been legally re-possessed by a mortgage lender
• property unoccupied because the person who lived there now lives elsewhere because they need to be cared for, for example, in hospital, in a care home or with relatives
• property which is unoccupied because the person who lived there has gone to care for someone else
• any property that only students live in. This may be a hall of residence, or a house
• a caravan or boat which is used as a main residence but which is unoccupied. This exemption lasts for up to six months. A holiday caravan or boat is exempt if it's on a property where council tax is paid
• a property where all the people who live in it are aged under 18
• a property where all the people who live in it are either severely mentally impaired or are students or where there is a mixture of both
• in England, a self-contained ‘granny flat’ where the person who lives in it is a dependent relative of the owner of the main property.

In addition, in Scotland, the following properties are also exempt:-

• unoccupied agricultural dwellings
• housing association ‘trial’ housing
• a building owned by a registered social landlord which is waiting for demolition
• a property which is unoccupied because it is difficult to let separately (for example a granny flat).

If you think that your property should be exempt, you should consult an experienced adviser, for example, at a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB.

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Who has to pay council tax

Usually one person, called the liable person, is liable to pay council tax. Nobody under the age of 18 can be a liable person. Couples living together will both be liable, even if there is only one name on the bill. This applies whether the couple is married, cohabiting or in a civil partnership.

Usually, the person living in a property will be the liable person, but sometimes it will be the owner of the property who will be liable to pay.

The owner will be liable if:-

• the property is in multiple occupation, for example, a house shared by a number of different households who all pay rent separately; or
• the people who live in the property are all under the age of 18; or
• the people who live in the property are all asylum seekers who are not entitled to claim benefits including council tax benefit
• the people who are staying in the property are there temporarily and have their main homes somewhere else; or
• the property is a care home, hospital, hostel or women's refuge.

If you think that the owner of the property should be paying the council tax, you should consult an experienced adviser, for example, at a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB.

If only one person lives in a property they will be the liable person. If more than one person lives there, 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. Two people at the same point of the hierarchy will both be liable.

The hierarchy of liability in England is:

1. a resident owner-occupier who owns either the leasehold or freehold of all or part of the property
2. a resident tenant
3. a resident who lives in the property and who is a licensee. This means that they are not a tenant, but have permission to stay there
4. any resident living in the property, for example, a squatter
5. an owner of the property where no one is resident.

The hierarchy of liability in Scotland is:

1. a resident who owns all or part of the property
2. a resident who is a tenant of all or part of the property
3. a resident who is a sub-tenant of all or part of the property
4. a resident with no security of tenure
5. a non-resident owner of any part of the property unless there is a non-resident tenant or sub-tenant who has a lease (or sub-lease) of six months or more.

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How much is the council tax

Each year, every local authority will set a rate of council tax for each valuation band. Not everyone will have to pay the full amount of council tax. There are three ways in which your council tax bill may be reduced. These are:-

• the reduction scheme for disabled people
• discounts
• council tax benefit and second adult rebate.

Reduction scheme for disabled people

If there is someone (adult or child) living in a household who is substantially and permanently disabled the council tax bill for the property may be reduced. The reduction is made by charging council tax on a lower valuation band than the one the property is in. For example, if the property is in band D, the council tax bill will be worked out as if it were in band C. This reduction also applies to dwellings in band A. The reduction will be the same proportion of the council tax bill as the properties in the higher bands.

To claim a reduction you must show that a disabled person lives in the property, and also that the property has at least one of the following:

• an extra kitchen or bathroom to meet the needs of a disabled person
• any other room (except a toilet) which is mainly used by a disabled person to meet their needs
• enough indoor space for a disabled person to use their wheelchair.

An application for this reduction must be made in writing to the local authority. Many local authorities will have a special application form. Some will ask for supporting evidence, for example, a doctor’s letter.

If you think that you may be entitled to a reduction because someone in their household is disabled you should consult an experienced adviser, for example, at a Citizens Advice Bureau. To search for details of your nearest CAB, including those that give advice by email, click on nearest CAB.

Discounts

If only one adult lives in a property they will get a 25% discount on the council tax bill. When working out how many people live in a property, some people are not counted. These are called disregarded people. If everyone who lives in the property is disregarded, there will still be a council tax bill, but there will be a 50% discount. People are disregarded when they are:-

• aged 17 or under
• living in the property temporarily and for whom this is not their normal home
• prisoners or people in detention awaiting deportation or under mental health legislation
• people who are severely mentally impaired
• full-time students on a qualifying course of education, including student nurses
• a spouse, civil partner or a dependant of a student who is a non British Citizen and who is not allowed under immigration rules, either to work in the UK or claim benefit
• young people on government training schemes and some apprentices
• long-term hospital patients and care home residents
• living in a hostel which provides care or treatment because of a person’s old age, physical or mental disability, past or present alcohol or drug dependence or past or present mental illness and in England bail or probation hostel
• care workers and some live-in carers
• staying in a hostel or night shelter, for example, in a Salvation Army or Church Army hostel
• school or college leavers still aged under 20 who have left school or college after 30 April. They will be disregarded until 1 November of the same year whether or not they take up employment
• aged 18 and someone is entitled to Child Benefit for them
• members of a religious community
• members of visiting armed forces and their dependants.

A local authority may automatically send a council tax bill which includes a discount. The discount will be shown on the bill.

If you believe that you are entitled to a discount and your bill does not show that you have had one, you should apply to the local authority for a discount, as soon as possible.

If the bill shows that the local authority has applied a discount and you do not think that you should have one, you must tell the local authority within 21 days. If you do not do this, the local authority may later impose a penalty.

Holiday homes

Furnished second or holiday homes in England and Scotland will be liable for council tax but will have a 10% -50% discount because no one lives there on a permanent basis.

Council Tax Benefit and second adult rebate

A person who is liable to pay council tax may be able to claim Council Tax Benefit. The amount of benefit they may get will depend on their income and capital.

If you have someone living with you who is not liable to pay the council tax on your property, you may be able to claim a benefit called a ‘second adult rebate’. You will not be able to claim a second adult rebate as well as Council Tax Benefit. If you are entitled to both, you will receive whichever is the higher.

For details of Council Tax Benefit and second adult rebate, see Help with your Council Tax – Council Tax benefit.

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How to pay council tax

Council tax bills should be sent out in April. You have the right to pay by 10 instalments. Local authorities may accept weekly or fortnightly payments. Some may also offer a reduction in the total bill if it is paid all at once, at the beginning of the year.

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Arrears

In England

When you have not paid an instalment of council tax on the date it is due, your local authority must issue a reminder, asking for payment within seven days. If you fail to pay within this period, you lose the right to pay by instalments and a full year's council tax becomes payable.

If you don't pay this within the next seven days, your local authority can ask the magistrates to issue a liability order.

A liability order allows a local authority to make arrangements for the arrears to be paid by deductions from your income support, jobseeker’s allowance or wages, or for bailiffs to seize your goods to the value of the amount owed. Alternatively, you could be sent to prison by the magistrate's court if you do not pay.

If your local authority issues you with three reminders for late payment of instalments within the same financial year, you will also lose the right to pay by instalments. A full year's council tax becomes payable when the third reminder is issued. However, in practice, your local authority may continue to accept payment by instalments, as long as they are paid on time.

In Scotland

When you have not paid an instalment of council tax on the date it is due, your local authority must issue a reminder, asking for payment within seven days. If you fail to pay within this period, you lose the right to pay by instalments and a full year's council tax becomes payable.

When you have not paid an instalment of council tax within 28 days of the date it is due, the local authority may apply to the sheriff court for a summary warrant to show that you are liable to pay the arrears. It must offer you time to pay the debt. If you cannot reach an agreement with the authority to pay off the arrears, or you can' keep to the payments under the time to pay order, the authority can enforce the summary warrant by making deductions from your income support, jobseeker’s allowance or wages or having sheriff officers seize a person’s goods to the value of the amount owed. Many of your possessions will be exempt from seizure.

If you are in arrears of council tax, you should consult an experienced adviser, for example, at a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB.

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Appeals

Appeals can be made about a range of issues about the council tax. An appeal must be made to either the valuation office (Assessor’s Department in Scotland) or the local authority depending on what it is about.

Appeals can be made to the valuation office about:-

• whether or not the property should be on the valuation list
• which valuation band the property is in
• in a property which is partly domestic and partly business, what proportion of the property is domestic.

Appeals can be made to the local authority about:-

• whether or not someone is a liable person. This includes someone who is jointly liable because there are two or more people on the same level of the hierarchy or someone is jointly liable because they are one of a couple
• whether or not the property is exempt
• whether or not a discount applies and how much it is
• whether or not the reduction scheme for people with disabilities applies.

Appeals cannot be made about the level of council tax set or each valuation band for the area.

Who can appeal

The following people can appeal against a decision of the valuation office (Assessor’s Department in Scotland):-

• the owner of the property
• the liable person, including a person who is jointly liable. There are special rules about when a liable person can appeal about the valuation band of a dwelling (see under Time limits for appealing about the valuation band a property has been put in)
• the person who would be liable if the property was not exempt
• the local authority.

The following people can appeal against a decision of the local authority:-

• a liable person, including a person who is jointly liable
• an aggrieved person. This is a person who is directly affected by the decision, for example, the administrator of the estate of a liable person who has died.

People who wish to appeal must have moved into the property for less than six months, or be in a new property which has recently been added to the valuation list.

Appeals to alter the valuation band of a dwelling

The valuation list may be altered to place a dwelling in a different valuation band if:-

• there was an error when the list was compiled; or
• the dwelling was valued incorrectly, for example, because the valuation officer did not know about internal features of the dwelling which reduced its value; or
• in a dwelling which is partly domestic and partly business, the domestic proportion has increased or decreased, or the dwelling has become wholly domestic or wholly business; or
• there have been changes to the dwelling which have reduced its value; or
• there have been changes to the dwelling which have increased its value and the dwelling has subsequently been sold.

There are special rules about when a liable person can appeal regarding the valuation band a dwelling has been put in – see below.

Time limits for appealing about the valuation band a property has been put in

If the liable person for a dwelling changes, the new liable person(s) will have six months from the date they become liable to make a proposal to change the valuation band. So, for example, if you became the liable person on 13 July 2005 you would have six months from 13 July 2005 to make a proposal to change the list. This is provided that your grounds for the proposal have not already been considered and rejected by a valuation tribunal or the High Court.

If a dwelling has recently been added to the valuation list, the liable person has six months from the date they become the liable person to make a proposal to change the list. In practice this means six months from the date the dwelling goes onto the valuation list.

The procedure

Appealing to the valuation office (Assessor’s Department in Scotland)

In order to appeal you must first make a proposal to the valuation office saying what you think should be changed and why. If the valuation office do not agree to the changes, the proposal automatically becomes an appeal and is heard by a valuation tribunal(Valuation Appeal Committee in Scotland).

Properties can only be put in a different band under certain circumstances, for example, if something has happened to reduce the value of the property significantly.

Appealing to the local authority

The first stage of an appeal to the local authority involves making a written complaint about the problem to the local authority. If the local authority does not resolve the problem, an appeal can then be made to the valuation tribunal.

The valuation tribunal (Valuation Appeal Committee in Scotland)

In all cases the valuation tribunal will consider all the information about the particular case and will decide what should happen. They may decide on the basis of written representations or may call everyone involved to a meeting to hear their evidence.

If you want to make an appeal either to a valuation office or a local authority you should consult an experienced adviser, for example, at a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB.

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Particular circumstances

There are particular points to remember in the following circumstances:-

• If you live permanently in a hotel – you will not be liable for council tax on the property although the hotel charges would probably include an amount towards any council tax payable
• If you have more than one home – you will probably pay a reduced council tax on your second home (if no-one lives there) and a full council tax on your main home
• If you own caravans or mobile homes – if you live permanently in a caravan or mobile home you will pay the council tax. People who have a fixed caravan as a holiday home will pay business rate. Towing caravans kept at your home will not be subject to either council tax or business rate
• If you are a full-time student in advanced education – you will have to pay council tax if you are the liable person for a property. However, if all the people living in the property are students no council tax will be payable and if some of the residents are students the council tax may be reduced.

If you are in any of these groups and need further information you should consult an experienced adviser, for example, at a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB.

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