Why is council tax based on property value

[daniielrp]

Hi all,

I've really struggled to figure out or find information on WHY council tax is based on property value. I've found loads of info about how it's calculated, how to pay it etc, but nothing on the WHY.

I'm about to buy my first house after renting, and will definitely be paying more in tax, and I just don't know WHY. I am not going to be using more of the council's resources - refuse, land, roads etc will all be the same, yet my monthly bill will be much higher just because I've saved up enough to purchase a nicer house.

Maybe I'm missing something obvious, but I just don't understand it.

Can someone explain why?

Many thanks!

[wales01man]

Its how it is all property is Valued in bands you can if you wish try to appeal the band

[des8]

Hi and welcome

Easy answer is that the more valuable the property, it is deemed the more you can pay.
It is generally accepted that the better off pay more to lessen the burden on the poorer

Historically the Poor Rate was based on wealth.
This was eventually changed to rates based nominally on the rentable value of the property.

Margaret Thatcher made the mistake of the Community charge, a fixed charge per head which varied from council to council.
This "poll tax" was seen as so unfair that there were riots, and it was swiftly withdrawn and replaced by the current system.

[daniielrp]

Easy answer is that the more valuable the property, it is deemed the more you can pay.

Well that's the bit that gets me because property value isn't anything more than a vague indication of what you can afford. What if the house is inherited, or you just simply save up to afford something better?

Why don't they base it on actual pay which is an indication of affordability?

[MIKE770]

council if you are buyer base it on paid sum, next door to you may be on lower as they bought say 10 years before (all based since introduction council tax years ago) but appeals could be started - outcome ??????????????????

[Amethyst]

Check your council tax band here https://www.gov.uk/council-tax-bands

The 1991 values ( and how new houses are banded) https://www.gov.uk/guidance/understa...s-are-assessed

No one's moved or built in my street for years, everyone is on band A - from the Rectory, to miners cottages, to 3 bed semis.

https://www.moneysavingexpert.com/re...-change/#step2 is a handy check tool to guestimate how much your house would have been valued at in 1991 which should give you an idea what band you should be in ( some info there on appealling )

Reasons it's based on value.... the usual. Look how much everyone was complaining about the higher rate tax band increase announcement yesterday for example. Bigggggg subject and we do try to avoid politics here.

[des8]

if you don't like the system you can always lobby your MP for a change, or start up your own political party!

you suggesting a local income tax scheme, such as in USA?
Were you aware the SNP once promised a local income tax to replace council tax, but have since back pedalled ?
Beware of what you want.... it might not be to your advantage!!

[MIKE770]

council if you are buyer base it on paid sum, next door to you may be on lower as they bought say 10 years before (all based since introduction council tax years ago) there is an appeal process but???

[Amethyst]

Stats due end of Nov
https://www.gov.uk/government/statis...and-wales-2018