Council Tax Band
A Council Tax band is the valuation band (A–H in England and Scotland, A–I in Wales) used by the council to work out how much Council Tax is payable on a dwelling. The band is set by the Valuation Office Agency (VOA) based mainly on what the property would have been worth at a historic valuation date, not on current market value. You cannot choose the band, but you or the resident can challenge it in limited circumstances.
From a landlord’s perspective, the band affects tenants’ running costs and therefore affordability and marketing. In a standard let of the whole property, the tenant is usually liable for Council Tax. In many HMOs, bedsits and some house shares, the landlord is liable, and must factor the cost into the rent. Self contained annexes and granny flats may attract separate bands, which can complicate liability and rebates.
Under the Renters’ Rights Act and existing fee rules, you cannot charge extra “admin” or mark-ups around Council Tax outside the list of permitted payments. You can either:
Let tenants pay the council direct, or
Include Council Tax within an all-inclusive rent, being clear in writing how this is structured.
One of August product features is property insights, this includes the Council Tax Band and costs for all properties you create in your property portfolio.
Also see our landlord blog articles.
