Paying council tax is one the most significant payments someone has to fit into their household budget. However as we head into 2025 it is crucial to understand how changes to your property or life might affect your council tax band.
Depending on how you choose to pay it payments towards your council tax can either be made in separate monthly payments or as a one-off annual payment. Either way it is a major expense to budget in.
To understand how changes surrounding your property might change your council tax you need to know how to figure out what your council tax is. For this you need to know three things:
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the valuation band for your home in England and Wales or in Scotland
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how much your local council charges for that band
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whether you can get a discount or exemption from the full bill
You might be eligible for a council tax reduction (formerly known as council tax benefit) if you have a low income or are on benefits. You’re also able to challenge your council tax band if you believe that your home is in the wrong valuation band. To see the latest Welsh homes as they come on the market sign up to our newsletter here.
Additionally you can be put into a different council tax band, which would mean a change in the amount you pay to the council, if:
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you demolish part of your property and do not rebuild it;
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you alter your property to create two or more self-contained units, for example an annexe, as each unit will have its own band
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you split a single property into self-contained flats
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you convert flats into a single property
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you start or stop working from home
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the previous owner made changes to your property
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there are significant changes to your local area like a new road being built
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a similar property in your area has its council tax band changed
If you want to know whether changes to your property will affect your council tax band you can ask the Valuation Office Agency (VOA).