Council tax ‘should be based on income’: Thousands slam amount of council tax they pay | Personal Finance | Finance

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is an outgoing which adults usually need to pay, but the amount payable depends on various factors. To work out council tax, a person needs to know three things – the valuation band for the home in England and Wales or in Scotland, how much the local council charges for that band, and whether they can get a discount or exemption.

The research found some areas in England with the lowest average house prices pay some of the highest council tax.

Asked whether they think it’s right that these people pay such high amounts, three quarters (75 percent) said no, while 15 percent said yes.

The remainder (10 percent) said they didn’t know.

Some people shared more thoughts via the comments section.

“Council tax should be based on your income, not your property. It could even be collected with your tax,” suggested one person.

Another Express Money reader penned: “I’m sure we pay way too much in Norwich, ours is over £3300 a year, it’s crazy, our house is worth nothing like a central London house. It’s so unfair.”

However, not everyone had the same opinion.

“You want services, you gotta pay for them. That’s all folks,” commented a third person.

The London borough of Westminster, where the average house price is more than £1million, has England’s lowest average council tax bill, the research found.

The average price of a Westminster property is £1,000,559.73, the second highest in the UK.

Meanwhile, the average council tax bill here is £945.

The study, from money transfer experts Xendpay, examined official Office for National Statistics (ONS) figures for the latest house prices and council tax rates, which are calculated based on the value of a property as of April 1, 1991.

It compared more than 300 areas of England.

The analysis found the London borough of Kensington and Chelsea now has the UK’s highest average house price, measured at £1,220,511.49 in February 2021.

However, residents there also enjoy England’s fifth lowest Council Tax bill – an average of just £1,515.

Conversely, County Durham has the third lowest (311 out of 313) average house price in England – measured at £112,722.16 in February 2021.

However, residents there receive the eighth-highest average Council Tax, at £2,503.

“Council Tax was contentious when it was first introduced and more than a quarter of a century later there are still plenty of questions about how it is calculated,” a spokesperson for Xendpay said.

“Property prices today are unrecognisable compared to 1991, and many areas have completely transformed, so these figures paint a fascinating picture.”





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