How much is your council tax bill? 

Whatever the figure, it’s set to rise on average by an above inflation increase of £100 next April, as local authorities come under further budgetary pressures.

The Government has re-committed to keeping the 5 per cent cap on council tax rises. 

However, in some areas where local budgets are particularly stretched, it can be increased by even more if authorities are given permission by the Government.

For example, Birmingham City Council has approved a 21 per cent increase in council tax over the next two years.

The rate does not just depend on where you live. It takes into account how much your property was valued at in 1991 in England and 2003 in Wales, as well as your income.

Ahead of the rise, now is the time to see if you can lower your council tax bill or even receive money back – which may apply to you, especially if your circumstances have recently changed.

Challenge your council tax band

In England there are eight different bands running from the cheapest Band A to the most expensive Band H, depending on how much the property was valued at in 1991.

In Wales, there are nine bands, based on 2003 valuations, while in Scotland there are eight bands set at different values.

The bands have not changed since their introduction over 30 years ago despite house prices increasing by more than 150 per cent over the same period.

In England, Band A was introduced for properties valued at under £40,000, while Band H was for properties valued at £320,000.

In Scotland, the bands run from Band A (homes worth up to £27,000) to Band H (homes worth over £212,000).

It means that hundreds of thousands of households are paying the wrong council tax and should be in a lower band, particularly those who believe their home was overvalued in 1991.

A Freedom of Information (FOI) request by Money Mail earlier this year revealed that just one in every 2,500 homes which request a change ends up paying more. 

Over a third of households in England and Wales that made a query in the year to April 2023 were moved into a lower tax band, according to data from the Valuation Office Agency (VOA), while the majority were kept in the same band.

The process of challenging your home’s tax band can be arduous and you will need a genuine reason to change it. 

One of the first steps you can take is checking what your neighbours in a similar property are paying and, if they are paying less, then it could be good news.

Be aware that if you challenge your council tax band and the VOA thinks you are paying the right amount of tax, or you need to pay more, other homes in the area may need to pay more, too.

You will also need to check what your home was worth in 1991, which you can do easily online by using websites like Zoopla or Rightmove. 

Once you have that information, you can find out which council tax band your property should have been placed in by checking gov.uk/guidance/understand-how-council -tax-bands-are-assessed. 

If the value of your property doesn’t match with the band, then you may have a case to bring to the VOA. 

Similarly, if there has been a physical change to the property, like a reduction in size because it has been turned into flats, you may have a case.

You can submit your application online if your property is in England and Wales at gov.uk/challenge-council-tax-band, but remember that you will need to explain why you think your home is in the wrong band and have plenty of evidence.

In Scotland, you can challenge your band using the Scottish Assessors’ Association website at saa.gov.uk/council-tax/council-tax-bands.

Claim support to pay your bill

Even if you think your property is in the right band, there are other ways you may be able to reduce your bill if you own your home, rent or are unemployed.

Students in full-time education are exempt from council tax, while low-income households can apply for a reduction to their bill through council tax support at gov.uk/apply-council-tax-reduction.

The Government has said you could see a reduction of up to 100 per cent if you are on a low income or claim benefits. 

The amount you receive will depend on where you live as each council runs its own scheme, and it will also look at your circumstances, including you and your partner’s income, including any savings or pensions.

The council will also consider your age and any benefits claimed for those living in the home.

Attendance Allowance, Disability Living Allowance, Carer’s Allowance and Personal Independence Payments could all increase the size of the reduction.

You will need to apply for a council tax discount or an exemption, even if you are disregarded. All local authorities also have a Section 13A scheme through which anyone can make a request for their council tax to be reduced or written off. 

While anyone can apply, you will have to prove you are in financial hardship and all other avenues to reduce the bill have been explored.

Disabled band reduction scheme

You might be able to apply for a council tax discount or exemption if you or someone you live with is disabled.

This is for people who live in larger properties than they would do if they or another occupant were not disabled.

For those who qualify, their bill will be reduced to the next lowest council tax band. For example, if your property is in Band D, you will pay the Band C rate. If your home is already in Band A, you will receive a 17 per cent discount on your council tax bill instead.

You will need to prove that you have an extra room that you need for a disabled person, or that there is extra space inside the property for wheelchair use.

Single person discount

Those who live alone are eligible for the 25 per cent single discount. The good news is that you might be entitled to the reduction, even if there are other adults living in your home who are ‘disregarded’ for council tax purposes. 

These include anyone under the age of 18, those in full-time education or some apprenticeship schemes, live-in carers and those with learning difficulties.

If everyone in the household is ‘disregarded’ for council tax, you will receive a 50 per cent reduction in your council tax bill.

Pensioners who get pension credit

Like low-income households, some pensioners are eligible for a reduction in their council tax by up to 100 per cent.

If you receive the guaranteed credit part of pension credit, you should not have to pay any council tax. If you don’t receive the guarantee credit, but have a low income and less than £16,000 in savings, you may be eligible for help.

While all local authorities use the same reduction scheme for those over state pension age, it can vary for those aged below it between councils. You will need to make a direct claim with your local council. 

There are other exemptions and discounts that may apply if you are pensioner, including if you live alone, you are a carer or you live with someone who has a severe mental impairment, such as dementia.

Discounts on second homes

You will usually have to pay council tax on a property you own or rent that isn’t your main residence and is furnished.

The definition of a second home is a dwelling which is no one’s sole or main home but is substantially furnished.

From April 1, 2025, councils can double council tax on second homes, so long as they give homeowners a year’s notice, so it is worth checking with your local council whether you may have to pay more. 

Empty, unfurnished properties may qualify for a discount but it will be up to your local authority.

If your home has been empty for at least a year, you can be charged a premium. This can be up to four times your normal bill if your home has been empty for at least ten years.

An annexe is exempt from council tax if it is joined to your home, if it is self-contained and is occupied by a relative of yours who is disabled or elderly.

If you’re in the Armed Forces and own property which you have left empty to move into accommodation attached to work, you will not have to pay council tax on your own property.

You will not need to pay council tax on an empty, inherited property until after probate is granted. Even after that, you may be entitled to an exemption for another six months if the house remains unoccupied and is still in the name of the person who died.

If you are the landlord of an empty property, you are responsible for paying council tax. Some councils offer exemptions if the property is unoccupied and unfurnished, such as Colchester

City Council which offers a 28-day exemption.