London’s Council Tax system plays a major role in the cost of living for residents across the city’s 32 boroughs and the City of London.
Council Tax helps fund essential local services like waste collection, road maintenance, and emergency services in each borough.
This guide explains how London Council Tax bands work, what you need to know when moving, and ways to manage your payments effectively.
Council Tax Bands in London
Properties in London are placed into bands A-H based on their assessed value from April 1991.
- Band A: Up to £40,000
- Band B: £40,001 to £52,000
- Band C: £52,001 to £68,000
- Band D: £68,001 to £88,000
- Band E: £88,001 to £120,000
- Band F: £120,001 to £160,000
- Band G: £160,001 to £320,000
- Band H: Over £320,000
Moving Within London
When relocating within London, you must inform both your current and new borough councils.
- Notify your existing council about your move-out date
- Register with your new borough council within 48 hours of moving in
- Set up a new direct debit for payments
- Request your closing bill from your previous address
Discounts and Exemptions
Several discounts and exemptions are available for London residents.
- 25% discount for single occupants
- Up to 100% discount for full-time students
- Disabled reduction scheme for homes adapted for disabled residents
- Council Tax Support for low-income households
How to Challenge Your Band
You can challenge your Council Tax band if you believe it’s incorrect through the Valuation Office Agency (VOA).
- Check similar properties in your area on the VOA website
- Gather evidence to support your case
- Submit your appeal online or by post
- Be aware that bands can be moved up as well as down
Payment Options
London councils offer various payment methods for Council Tax.
- Direct Debit (most councils offer a discount for this)
- Online payment through council websites
- Phone payment
- Standing order
- Payment at Post Offices or PayPoint locations
Getting Help with Council Tax
Contact your local council’s tax department if you’re struggling with payments.
- Ask about flexible payment plans
- Check eligibility for Council Tax Support
- Seek advice from Citizens Advice
- Consider professional debt advice if needed
Next Steps for New Residents
Keep your Council Tax documentation safe and accessible for future reference.
Set up automatic payments to avoid missed deadlines and potential penalties.
Sign up for your council’s online account system to manage your Council Tax efficiently.
Common Issues and Solutions
Understanding typical Council Tax challenges can help London residents avoid problems.
- Missing payments or payment deadlines
- Incorrect band assessments
- Delays in updating occupancy changes
- Problems with student status verification
Emergency Support
London councils provide emergency assistance for residents facing financial hardship.
- Temporary payment breaks in crisis situations
- Hardship funds for exceptional circumstances
- Referrals to financial support services
- Emergency reductions for vulnerable residents
Digital Management Tools
Most London boroughs offer online services to manage Council Tax accounts.
- View statements and payment history
- Download bills and documents
- Update personal details
- Report changes in circumstances
Making London Living More Manageable
Understanding and effectively managing your Council Tax obligations is crucial for comfortable living in London.
Stay informed about available support, maintain regular payments, and keep your council updated about any changes in circumstances.
Remember that help is always available through your local council or advisory services if you need assistance managing your Council Tax responsibilities.
FAQs
- What are Council Tax bands in London and how are they determined?
Council Tax bands in London range from A to H and are based on the property’s value as of 1st April 1991. Band A is for properties valued up to £40,000, while Band H is for properties valued over £320,000 in 1991. - How can I find out my property’s Council Tax band?
You can check your property’s Council Tax band on the official UK government website (www.gov.uk/council-tax-bands) by entering your postcode or by contacting your local London borough council directly. - Can I challenge my Council Tax band if I think it’s wrong?
Yes, you can challenge your Council Tax band through the Valuation Office Agency (VOA) if you have evidence that your property’s valuation is incorrect. This process is called making a ‘proposal’. - Do I need to pay Council Tax if I’m a student in London?
Full-time students are typically exempt from paying Council Tax. You’ll need to provide your university or college with proof of your student status to claim the exemption. - How does Council Tax work when moving in or out of London?
When moving, you must inform both your old and new council of your moving date. You’ll receive a final bill from your old council and a new bill from your new council, calculated on a daily pro-rata basis. - What Council Tax discounts are available in London?
Common discounts include 25% for single occupancy, discounts for pensioners, and reductions for people on low incomes through the Council Tax Reduction scheme. Each London borough has its own specific reduction schemes. - How often do I need to pay Council Tax in London?
Council Tax is typically paid in 10 monthly installments from April to January, though some councils offer 12-month payment plans. You can usually choose to pay monthly, quarterly, or annually. - What happens if I don’t pay my Council Tax in London?
Failing to pay Council Tax can result in legal action, including court summons, bailiff involvement, and additional costs. The council can also arrange for payments to be deducted directly from your wages or benefits. - Are there any properties exempt from Council Tax in London?
Yes, certain properties are exempt, including those occupied only by students, properties left empty by someone who has moved into a care home, and properties occupied only by people under 18. - How do Council Tax rates vary between London boroughs?
Council Tax rates can vary significantly between London’s 32 boroughs. Inner London boroughs often have lower rates than outer London boroughs due to different funding mechanisms and local service requirements.
