Monday, May 19, 2008

15-May-08 Council Tax

Aside from the "national income tax", individuals are also subject to council tax in their area of residence based on the location and dwelling where they live. There are different "bands" that determine how much someone will pay for council tax. Band A is cheapest, all the way up to Band G, etc. Most flat units are somewhere in the C or D band. Interestingly, the closer you are to the town centre, the higher the band in some cases. But obviously, the higher value properties (detached houses) also have the higher band, as well as those along the seafront.

Council tax covers the equivalent of a state/city income tax in the US. There are 10 installments during the year (not 12....not paid in 2 months of the year). You can either pay monthly, quarterly or annually for the amount. This goes to support the expenses of the municipality - streets, sanitation, public works, emergency personnel, administration, etc.

There are constant gripes about how the council spends the tax money, so it's the same in any location!

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