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The council tax base of a local authority consists of the number of band D equivalent dwellings in the area. Exemptions and discounts are taken into account and the number of properties in each band is reduced to reflect these. The council tax base is calculated by multiplying the reduced number of properties in each band by its ratio to band H and adding these products together to arrive at the total number of band D equivalents. (E.g., a band H property is equivalent to two band D properties, a band A dwelling is equivalent to two thirds of a band D dwelling and so on for each band.) The resulting figure is adjusted to reflect the collection rate. The council tax base used by central government for calculating the amount of formula grant to provide to a local authority is rather different from that used by local authorities in determining council tax rates. The main differences are that the tax base used in calculating formula grant assumes council tax collection rates of a hundred percent, whereas the calculation of council tax rates uses the actual collection rate. Also the formula grant calculation assumes a second home discount of 50%, while the council tax setting calculation is based on the actual discount for second homes the local authority applies. In addition the data used in the formula grant and tax setting council tax basis are collected at different times of year. The calculation used when local authorities set council tax is sometimes referred to as the tax setting tax base, to distinguish it from the figure used by central government when assessing formula grant entitlement.

    This table shows the council tax bands for England and their fractions (also percentages) of band D.

Band         Valuation                 Fractions   (%)   of  Band D                                                                                   
   A           £40,000 and Below              6/9    (67%)               

   B           £40,000 - £52,000               7/9    (78%)              

   C           £52,000 - £68,000               8/9    (89%)       

   D           £68,000 - £88,000               9/9    (100%)      

   E           £88,000 - £120,000             11/9   (122%)       

   F            £120,000 - £160,000          13/9   (144%)      

  G           £160,000 - £320,000            15/9   (167%)      

   H          £320,000 and Over              18/9   (200%)       




Council Tax Benefits Charges Rates Bands Exemptions


Copyright (2007)