A4.7 Council Tax

What is Council Tax in the UK? Do international students have to pay it?

Firstly, Council Tax is a local tax in the UK, similar to a property tax, comparable to domestic property management fees in China. As most British properties don't have residential complexes like those in China, and many are detached or terraced houses, the maintenance of public surroundings, facilities, and security in the area is handled by the UK government. The funding required for these government-provided social services comes from the collected Council Tax, which is primarily levied in England, Scotland, and Wales.

So, how is the specific amount of Council Tax calculated? How much do you need to pay?

The tax is applied per property, meaning all residents living in the house are responsible. However, liability depends on the situation: for instance, if the entire property is rented, the tenants pay the tax; if only part of the property is rented, the landlord pays.

The specific Council Tax charge is primarily determined by the current value, area, and size of your residence, categorised into bands. In England, bands range from A-H, and in Wales, from A-I. For example, based on a property's 1991 value, Band A is approximately over £1,000, Band B around £1,200, Band C around £1,300, Band D around £1,500, Band E around £1,900, Band F around £2,200, Band G around £2,600, and Band H over £3,000.

You can directly check the specific amount you need to pay by entering your postcode on the website: https://www.gov.uk/council-tax-bands

Who is required to pay Council Tax?

Generally, anyone aged 18 or over who owns or rents a property in the UK must pay this tax. The full tax amount is only required if two or more adults live in the property. If only one adult aged 18 or over resides there, a 25% discount applies. If the property is unoccupied, a 50% discount is available.

So, who is exempt from paying Council Tax?

If everyone living in the property is a full-time student in the UK, then it is exempt from Council Tax.

Full-time students are not required to pay Council Tax. A full-time student is defined as someone studying for more than 21 hours per week or for a course lasting more than one year. You simply need to obtain a student status letter from your student centre.

How do you pay Council Tax?

Typically, the Council Tax department of your local council will send you a Council Tax bill letter stating how much you need to pay, payment methods, deadlines, etc. The tax is calculated annually, but the yearly amount can be paid in 10 instalments.

On the website: https://www.gov.uk/pay-council-tax, you can enter your address to find out which Council Tax band your property belongs to.

What should you do if you receive a Council Tax court summons in the UK?

Council Tax is the housing tax mentioned earlier, used to fund social services like environmental maintenance and facilities for the property. This means anyone renting or buying a property must pay this tax, except full-time students.

England and Wales have different systems, but all properties are assigned a band, ranging from the lowest A to the highest H.

If you don't know which band your property is in, visit the website: http://cti.voa.gov.uk/cti/inits.asp and enter your postcode to find out.

So, who needs to pay this Council Tax? As mentioned in previous articles, full-time students do not. You can check who is liable to pay this housing tax on the website: https://www.gov.uk/council-tax/who-has-to-pay.

Note: If you use a letting agent, make sure they help you apply for the Council Tax exemption. You will need to provide a student status letter from your university, and this must be arranged at the very beginning.

What should you do if you receive a summons in the meantime? As long as you are still a full-time student enrolled on a one-year course, you must take immediate action upon receiving the summons. First, call the local council to explain your situation. If phoning doesn't work, take your student status letter, BRP, and passport to the local council office.

Alternatively, take the Council Tax court summons letter to your university's student centre, explain your situation, and the university will help by writing a letter to the council confirming your student status and exemption from Council Tax. The Council Tax letters will keep coming until they receive the letter from your university, after which they will send you a letter confirming you don't have to pay.