VeryVeritas

I understand that US social security will be taxed in the UK. But no where can I find information that gives me a rough idea of what the tax rate is.

I also cannot fathom the whole council tax thing for the life of me. It appears there are bands? Is it done by head or by household? Does this vary by a great deal, meaning could it make economic sense to live in an area with lower council taxes? And what might the implication of that be (Poorly maintained roads? Crumbling tenements?)??

Pulaski

Here you go.. ..... 0% up to £11,000, then 20% upto £43,000, thereafter 40%. There is a higher rate still over £150,000.

With few exceptions council tax is assessed on bands by value of the property.

VeryVeritas

Oh thank you! That helps enormously.

So Council Tax is tax on the property? Does this apply only to people who own the property or does it apply to those who rent as well?

Are the bands a percentage of assessed value? Is the value deemed to be "market" and how often is it assessed? Is the band a set percentage of the assessment with A being the highest or lowest? Are the bands normalized for the entire country or do they vary by taxing district?

Sorry for all the questions! We will likely consult a tax person but this at least gives me an idea of what people are talking about.

Pulaski

Council tax is assessed on the occupant, which isn't necessarily the owner.

The bands are based on the value, but I don't know how exactly that works. A is the cheapest band, D is often quoted as the notional average. The tax amounts and bands vary between taxing authorities.

If you tried to use one set of bands for the whole country then almost everything in London would be in the top couple of bands, and almost everything in rural districts would be in the lowest bands.

VeryVeritas

Oh, got it! Well, sort of got it. Thank you!

Editha

https://www.gov.uk/guidance/understa...s-are-assessed

The above link gives an explanation of council tax bands. In fact, the valuations are not quite as rational as the explanation suggests. For example, our house is in a lower band than my mother's, even though it is worth significantly more than hers, and our house is in the same band as our next door neighbours', even though they have added a two storey extension, making their house much larger than ours and worth a lot more.

mikelincs

If you are renting then you usually have to pay the council tax. A is the lowest band and bands are different over the whole of the country. Basically, if you live in a high house price area you council tax will be higher than in a lot cheaper area, and even within the same area bands may well be different even though the properties seem very similar, the banding does seem a bit hit and miss at times. If you are looking at properties on Rightmove then you should be given the council tax band for the property, and you can therefore find what the charge will be by going to the council site.

Editha

The bands are different for England and Wales, but the same all over England and the same all over Wales (see my link to the gov.uk site above). What varies is the rate set for each band by the local authority.

So, for example, everywhere in England Band D is for properties valued between £68,001 and £88,000, as on 1st April 1991. If you live in Lewes in Sussex the current rate for Band D is £1,853.87 for the year 16/17; in Bideford Devon it is £1,686.11.

If you have the postcode for any property you are interested in buying or renting, you can check the council tax band on this site: https://www.gov.uk/council-tax-bands

To find out how much tax is being charged for each band, look at the individual council website.

VeryVeritas

Oh this is great! Thank you. It is starting to make sense.