Council Tax When Moving House

Council Tax is a local tax paid to your local authority to fund services like schools, rubbish collection, and other community services. Whether you rent or own your property, you are required to pay council tax. The amount you pay will vary depending on your location.

Moving house involves a lot of planning and preparation. One of the key tasks when purchasing a home is to inform the necessary individuals and organizations.

As soon as you move, it’s important to notify the local authority to ensure you are registered for council tax. In this guide, we will walk you through the steps involved in registering for council tax and what to expect regarding payments.

What Happens with Council Tax When Moving House?

Before your moving day, you’ll need to contact your local council to inform them of your change of address. This will allow them to stop your current monthly council tax payments. Once you leave your current address, the local council will send you a final bill, which will be processed as a monthly payment. Afterward, you will receive an annual council tax bill for your new property.

If you’re moving locally and staying within the same local authority, you can continue with your existing direct debit arrangement. This makes it easier to set up your new council tax payment on the same day that you close your old account. However, if you’re moving to a new area, you’ll need to create a new council tax account.

If you own your current home and it remains empty when you leave, you will still be required to pay a reduced rate council tax on it. On the other hand, if you are renting and leaving your rental property, you will no longer be responsible for the council tax there. It’s essential to be informed about these aspects to ensure you don’t overpay or forget to settle any outstanding bills, and to know who to notify when moving house.

How to Cancel Council Tax?

To cancel council tax, go to the ‘change of address’ section on your local authority’s website. You will need to provide the forwarding addresses for all adults at the property who are liable for paying council tax.

Once you’ve notified your local council, you’ll receive a final bill. If you’ve overpaid and are in credit, you can request a refund from your local authority. It’s essential to plan ahead to ensure this process is completed promptly, so you avoid paying unnecessary council tax for a property you no longer reside in.

When Do You Start Paying Council Tax After Moving In?

Your council tax responsibilities begin immediately from the day you move into your new property. If you’ve moved within the same local authority, your direct debit can continue at your new address without interruption.

Don’t wait for the ‘new occupier’ letter to arrive after you’ve moved in. It’s crucial to register with the local council as soon as possible once you’ve moved. If you delay, the council may backdate any required council tax payments, leading to higher costs.

Who Pays Council Tax?

Council Tax is something that the vast majority of homeowners and renters in Britain have to pay. This is the case whether you are buying or renting a home.

However, there are some circumstances where a property or person is exempt from paying Council Tax.

People or properties who are exempt from paying Council Tax include:

Full-time students

Individuals who are part of an apprentice scheme

Residents under 18 years of age

Those moving into Armed Forces accommodation

Homes that are unoccupied following the death of the owner

Reductions

If you live alone or are the only adult in the property, you can apply for a 25% reduction.

Council Tax costs are also means-tested for disabled residents, which can mean a discount. You can also apply for Council Tax reduction is you a receiving Universal Credit.

You can find out more about exemptions and help with moving costs on your Local Authority's website

Challenge Your Council Tax Band

It’s estimated that up to 400,000 homes in England and Scotland could be placed in the wrong council tax band. If you think your property is in the incorrect council tax band, you can challenge it.

The Valuation Office Agency (VOA) will assess your property during a council tax challenge or review. Typically, they will provide a decision within two months. To start, you’ll need to access your property’s council tax band on the Council Tax Valuation list if you live in England or Wales. For those in Scotland, you’ll need to visit the Scotland Assessor Association website.

When challenging your council tax band, you will need to provide details of similar properties in the area that are in lower bands, along with evidence such as sale prices and dates of sale.

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