COUNCIL TAX BAND NEW BUILD

pinkteapot

We bought a new-build in November. Two things, OP:

Firstly, you might be pleasantly surprised. I put the price we were paying into the calculator and was expecting Band G. We've been valued at Band F. Happy days.  

Secondly, estimate the band and put aside the relevant amount of council tax each month. It will take them MONTHS to send you a bill, but when you get it it'll be back-dated to the date you moved in and they'll expect immediate payment. We got our bill in March (four months). The Valuation Office have to get round to valuing it, then they send the result to your local council who have to get round to issuing a bill. 

If you're not sure whether it'll be one of two bands, put aside the higher amount of money each month until it's confirmed and you get some of that money back if it ends up in the lower band. 

lincroft1710

Mickey666 said:

lincroft1710 said:

Mickey666 said:

Personally I dislike property-based council tax because it is not based on the ability to pay and would much prefer some sort of local authority income-based tax, but I guess that's another topic altogether.

Property based taxes for funding local government have been around for literally centuries. The only time a non property based method was used relatively recently was in 1990 with the introduction of the Community Charge which lasted all of 3 years.

Successive governments have said they prefer a property based tax but tend not to shout it from the rooftops.

There are certain reliefs available for those on low income

The idea that CT is to pay for local services is certainly flawed when a family of six on a low-ish income can live next door to a single millionnaire and both pay the same amount (ok, I'm stretching that a bit, but you get my point).  Also, a married couple work hard all their lives to buy their dream home but when they retire they find the their high-band CT is suddenly taking a much higher proportion of their income.  Then one dies and the remaining partner still has to pay 75%.  A local council income tax would be a far fairer system and would be based on ability to pay rather than some notional value of a property.  But hey ho, we could discuss tax reform until the cows come home.  It is what it is.

Property based taxes are much cheaper to levy hence their popularity with both central and local governments. 

I would think the number of unmarried millionaires living next to a family of six is pretty tiny

If you want to moan about an unfair tax why not have a go at VAT, far more iniquitous. Why should I have to give the government 20% of the cost of having my CH boiler serviced or repaired.

AdrianC

lincroft1710 said:

If you want to moan about an unfair tax why not have a go at VAT, far more iniquitous. Why should I have to give the government 20% of the cost of having my CH boiler serviced or repaired.

Because...
1. Taxes are the price we pay for living in a civilised society.
2. Taxes on consumption, with exemptions and reductions for basic essentials, are fair.

lincroft1710

AdrianC said:

lincroft1710 said:

If you want to moan about an unfair tax why not have a go at VAT, far more iniquitous. Why should I have to give the government 20% of the cost of having my CH boiler serviced or repaired.

Because...
1. Taxes are the price we pay for living in a civilised society.
2. Taxes on consumption, with exemptions and reductions for basic essentials, are fair.

I am perfectly aware that taxes are necessary, (they did pay my salary during the majority of my working career) my point is that some aspects of VAT appear to me unfair. 

Prior to 1973 we did not have to pay the government for having work done, purchase tax on goods used OK, but not on the labour. I would argue that necessary repairs to one's home are an essential. 

AdrianC

lincroft1710 said:

AdrianC said:

lincroft1710 said:

If you want to moan about an unfair tax why not have a go at VAT, far more iniquitous. Why should I have to give the government 20% of the cost of having my CH boiler serviced or repaired.

Because...
1. Taxes are the price we pay for living in a civilised society.
2. Taxes on consumption, with exemptions and reductions for basic essentials, are fair.

I am perfectly aware that taxes are necessary, (they did pay my salary during the majority of my working career) my point is that some aspects of VAT appear to me unfair. 

Prior to 1973 we did not have to pay the government for having work done, purchase tax on goods used OK, but not on the labour. I would argue that necessary repairs to one's home are an essential. 

VAT isn't charged on rent, except in very unusual situations.
VAT isn't charged by small-business tradesmen.

VAT has been in place for a lot longer than Purchase Tax ever was, and is a system adopted by far more countries around the world. Apart from that, PT was introduced as a short-term stopgap to address one specific situation - wastage of raw materials during wartime.

Ultimately, the same amount of money needs to be raised by government one way or another, unless expenditure is reduced.