1. What is council tax

Council tax is a tax on residential dwellings paid to the local authority. It includes an amount for water and sewerage. There is one amount to pay and one bill for each dwelling unless it is exempt from council tax. A ‘dwelling’ includes a self-contained flat.

Each dwelling is allocated a valuation band from A to H based on property values in 1991. Council tax is lowest for those in Band A.

Some dwellings are exempt from council tax. If the dwelling is exempt, there is no council tax to pay for anyone who lives there or for a non-resident owner. There are exemptions specifically for students.

Although non-student flat/house sharers are normally jointly liable for the bill, full-time students are not usually liable to pay council tax unless they own the property. Those liable for council tax may get a discount or exemption if they live alone or if they share with students. The amount to pay may be further reduced if the person is eligible for council tax reduction or second adult rebate (see here–here).