Council Tax in Wales
| Taxation in Wales |
|---|
| UK Government Departments |
| Welsh taxation |
| Local taxation |
| UK Government |
Council Tax (Welsh: Treth Cyngor or Treth Gyngor or Treth y Cyngor) in Wales is a tax on domestic property which was introduced across Wales in 1993, along with England and Scotland, following passage of the Local Government Finance Act 1992.[1] It replaced the Community Charge (popularly known as the Poll Tax). Each property is assigned one of nine bands (A to I) based on property value, and the tax is set as a fixed amount for each band. Some properties are exempt from the tax, some people are exempt from the tax, while some get a discount.
Organisation
Liability for Council Tax
In general terms: the occupiers of a property are liable, regardless of tenure, except if the property is a 'house in multiple occupation', in which case the landlord is liable for paying the Council Tax.[2]
A joint tenant or owner who is a care leaver is not jointly and severally liable in Wales.[3]
Calculation
Until 2003, each dwelling was allocated to one of eight bands coded by letters A to H on the basis of its assumed capital value as of 1 April 1991 and newer properties than this are assigned a nominal 1991 value.[1] Since 2003, this has been changed to use capital value as of 1 April 2003 and to use nine bands coded A to I.[4] These values are assessed by the Assessor appointed by each local authority; in some cases there is a valuation joint board that covers multiple council areas.
Each local authority sets a tax rate expressed as the annual levy on a Band D property inhabited by two liable adults. This decision automatically sets the amounts levied on all other types of households and dwellings are derived automatically from that figure.[5] The nominal Band D property total is calculated by adding together the number of properties in each band and multiplying by the band ratio.[5] So 100 Band D properties will count as 100 nominal Band D properties, whereas 100 Band C properties will count as 89 nominal Band D properties. Each collecting authority then adds together the Band D amounts for their area (or subdivisions of their area in the case, for example, of civil parish council precepts) to reach a total Band D council tax bill. To calculate the council tax for a particular property a ratio is then applied. A Band D property will pay the full amount, whereas a Band H property will pay 245% of that figure.
Current bands
Council Tax bands as of April 2025, and ratios levied, are:[6]
| Band | Value (based on 1991 prices) |
Ratio of charge to Band D charge | |
|---|---|---|---|
| As a ratio | As a % | ||
| A | up to £44,000 | 6⁄9 | 66.7% |
| B | £44,001 to £65,000 | 7⁄9 | 77.8% |
| C | £65,001 to £91,000 | 8⁄9 | 88.9% |
| D | £91,001 to £123,000 | 1 | 100% |
| E | £123,001 to £162,000 | 11⁄9 | 122.2% |
| F | £162,001 to £223,000 | 13⁄9 | 144.4% |
| G | £223,001 to £324,000 | 15⁄9 | 166.7% |
| H | £324,001 to £424,000 | 2 | 200% |
| I | over £424,000 | +21⁄9 | 233.3% |
Criticism
Lack of referendums for large increases
The lack of a referendum system for large increases in Council Tax has been criticised by the Welsh Conservatives.[7]
Reform
2003 revaluation
Unlike in Scotland and England where Council Tax is based on 1991 property values, properties were revalued in Wales in 2003.[8]
Local Government Finance (Wales) Act 2024
| Act of Senedd Cymru | |
| Long title | An Act of Senedd Cymru to make provision about non-domestic rating and council tax. |
|---|---|
| Citation | 2024 asc 6 |
| Introduced by | Rebecca Evans MS, Cabinet Secretary for Finance, Constitution & Cabinet Office |
| Dates | |
| Royal assent | 16 September 2024 |
Status: Current legislation | |
| History of passage through the Senedd | |
| Text of the Local Government Finance (Wales) Act 2024 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk. | |
The Local Government Finance (Wales) Act 2024 (Welsh: Deddf Cyllid Llywodraeth Leol (Cymru) 2024) made a series of reforms to Council Tax.
The act implements a five-yearly cycle of revaluations of properties.[9] Originally the revaluation had been planned to occur in 2025.[8] Cefin Campbell, a Plaid Cymru spokesperson, supported the measure because it would reduce economic inequalities in Wales.[8] Sam Rowlands, a spokesperson for the Conservatives, sought clarity about the geographical distribution of the "winners and losers".[8] Later, this was delayed to 2028 [10]
Originally it had been planned that the legislation would have replaced the obligation to publish a notice for a change in council tax in a local newspaper, but this was dropped.[11] The proposal had been criticised by the Older People's Commissioner due to its disproportionate impact on older people and by Newsquest on the basis that it would make local newspapers unprofitable.[12]
The Welsh Conservatives described the act as a tax hike on "hard-working people".[13] The Institute of Fiscal Studies supported the principles of the act, describing the "broad direction of change" positively.[14]
Further reforms
The Welsh Conservatives described proposed reforms to "modernise" exemptions and discounts to Council Tax as "failing families".[15]
See also
References
- ^ a b Adam, Stuart; Hodge, Louis; Phillips, David; Xu, Xiaowei. "Revaluation and reform: bringing council tax in England into the 21st century" (PDF). Institute for Fiscal Studies. Archived (PDF) from the original on 29 February 2024. Retrieved 2 June 2025.
- ^ "Council tax". National Landlords Association. 21 November 2011. Archived from the original on 18 January 2018.
- ^ "Liability for council tax". Shelter England. Archived from the original on 21 March 2025. Retrieved 2 June 2025.
- ^ "How much is my Council Tax?". Swansea Council. Archived from the original on 5 May 2025. Retrieved 2 June 2025.
- ^ a b Sandford, Mark (6 February 2025). "Council tax: FAQs" (PDF). House of Commons Library. Archived from the original (PDF) on 25 February 2023.
- ^ "Council Tax levels: April 2025 to March 2026" (PDF). Welsh Government. 20 March 2025. Archived (PDF) from the original on 3 April 2025. Retrieved 2 June 2025.
- ^ Gwawr, Elliw (25 March 2025). "Give public say on council tax hikes, say Tories". BBC News. Archived from the original on 28 March 2025. Retrieved 2 June 2025.
- ^ a b c d Davies, Daniel (2 May 2023). "Welsh council tax revaluation goes ahead". BBC News. Archived from the original on 6 May 2023. Retrieved 2 June 2025.
- ^ Haines, Chris (22 November 2023). "Minister hails new Local Government Finance Bill". Nation Cymru. Archived from the original on 28 February 2024. Retrieved 2 June 2025.
- ^ Davies, Daniel (15 May 2024). "Major Welsh council tax reform delayed until 2028". BBC News. Archived from the original on 29 May 2024. Retrieved 2 June 2025.
- ^ Deans, David (9 July 2024). "Welsh government U-turns on newspaper notices". BBC News. Archived from the original on 9 July 2024. Retrieved 2 June 2025.
- ^ Jones, Alun (31 January 2024). "Public notices changes could do 'catastrophic' damage Senedd told". BBC News. Archived from the original on 16 February 2024. Retrieved 2 June 2025.
- ^ Davies, Daniel; Deans, David (14 November 2023). "Council tax could rise for 470,000 homes in Wales". BBC News. Archived from the original on 14 November 2023. Retrieved 2 June 2025.
- ^ Adam, Stuart; Phillips, David; Ray-Chaudhuri, Sam (2023). "Assessing the Welsh Government's consultation on reforms to council tax" (PDF). Institute for Fiscal Studies. Archived (PDF) from the original on 15 July 2024. Retrieved 2 June 2025.
- ^ Sinclair, Tom (25 May 2025). "Welsh Conservatives slam Labour's council tax reform as 'failing families'". The Pembrokeshire Herald. Archived from the original on 27 May 2025. Retrieved 2 June 2025.
External links
- Text of the Local Government Finance Act 1992
- Check your Council Tax band, from the UK Government