Council Tax Model - why based on House Valuation?
in Reclaiming mortgage fees, council tax, etc
23 replies 293 views
When I see what I’m paying CT for it is directly linked to “number of people”. So why do we have a model that says “your house is worth X so we’ll charge you Y - regardless of what TYPE of house you live in”.
Let’s take two 3-bed houses in the same town … 1 at £200k the other at £300k. Both have 3 occupants = they’re the same impact on council-related services. Yet one pays more just because it’s in ‘that area’. What am I missing? Surely the singular model of “house valuation alone” is flawed and there should be the extra dimension of “occupancy”? Thoughts?
Latest MSE News and Guides
Did you know there's an MSE app?
It's free & available on iOS & AndroidMSE App
Regifting: good idea or not?
Add your two cents to the discussionMSE Forum
Energy Price Guarantee calculator
How much you'll likely pay from AprilMSE Tools
However, paying more for having a more valuable property predates CT and was also a feature of the old domestic rating system, so would have been in existence since at least the beginning of the 20th century and may even date back to the 19th century.
In relation to occupancy - A better way to frame the question would be two houses of identical value, paying the same council tax, but one has two habitants whereas the other has four. Why should the two residents pay double the council tax of the other house when they individually benefit from the services the same?
The only reason I can think of is it prevents 'creative accounting' of people living in the property.
I forgot to mention earlier, but Council Tax is not a payment for services, it is a tax which goes towards funding local government spending
The base line is the property value. That assumes two or more residents.
There is a discount for single resident.
There are also discounts that result in NIL charge (e.g. students)
Also surcharges that increase the rate above standard 100% (e.g. second-home)
Rather than simply say the current system is not as you feel would be best, why not set out your proposal in detail and send to your MP which may solicit change.
If your proposal is too similar to the Community Charge / Poll Tax, then I doubt it will gain much traction.
Community Charge / Poll Tax replaced the previous rates system (solely property value) with one that was solely occupancy based
The current CT replaced the Community Charge / Poll Tax and was a reversion to a property-based system with some adjustment consideration to occupancy. It is the nearest we have had to a system that accounts for both property value AND occupancy as you seem to desire.