Every home in Scotland sits in one of eight council tax bands, A to H, set by the Assessor according to the property's estimated open market value on 1 April 1991. Your local council sets the charge for each band, so the same band costs different amounts in different council areas. As a new owner you can ask for the band to be reviewed within six months of becoming the owner, and low-income households may qualify for Council Tax Reduction.
The eight bands
| Band | Value at 1 April 1991 |
|---|---|
| A | Up to £27,000 |
| B | Over £27,000 to £35,000 |
| C | Over £35,000 to £45,000 |
| D | Over £45,000 to £58,000 |
| E | Over £58,000 to £80,000 |
| F | Over £80,000 to £106,000 |
| G | Over £106,000 to £212,000 |
| H | Over £212,000 |
Because each band covers a wide range, two similar homes can fall in different bands. The band is not based on today's sale price, and a recent purchase does not change it. The Scottish Assessors' website has a search so you can look up the band of any address before you offer. The Home Report's property questionnaire also states the council tax band; see the Home Report explained.
Check the band before you commit
- Look up the band on the Scottish Assessors' site and confirm it matches the questionnaire.
- Check your council's charge for that band on its website, and add it to your monthly budget alongside the mortgage.
- Compare the band with similar neighbouring homes. A band that looks too high can be challenged.
- If you want it reviewed, send a proposal to the Assessor. A new owner has six months from becoming the owner or liable person.
- Do not assume the seller's bill carries over: you become liable from the date of entry, which your solicitor can confirm.
The Assessor must acknowledge a valid proposal within 14 days and has up to six months to respond. If the Assessor says the proposal is not well founded, you can appeal to the First-tier Tribunal. A proposal after you buy is not a guarantee of a lower band, so avoid budgeting on one.
Lenders look at your commitments, and council tax is part of the monthly cost of living in the property. The figure matters most when you compare two homes at the same price in different council areas.
Council Tax Reduction
Council Tax Reduction (CTR) helps people on a low income pay their bill. Citizens Advice Scotland says you must be liable for the bill, live in the property as your main home, have income below a set amount and meet the residence rules. You can get it automatically if you receive Pension Credit (guarantee credit), Universal Credit, Income Support, income-based Jobseeker's Allowance or income-related Employment and Support Allowance. Otherwise you can apply on a low income if your capital is £16,000 or less, which counts savings and some property.
- Your council applies whichever gives the largest reduction: CTR, the Bands E to H relief, or the Second Adult Rebate.
- Bands E to H relief uses different income rules and is aimed at people in higher bands on low incomes.
- Second Adult Rebate may apply if you live with another adult who is not your partner, pays no rent and is not jointly liable.
- If you get CTR and no other discount, you also get a reduction on water and sewerage charges of up to 35%.
- Discounts and exemptions also exist, for example for people who live alone and for some student homes.
Buyers on lower incomes should check this in advance, because a reduction can change what a home really costs to run. Your council assesses your claim and you can estimate it with an online benefits calculator on GOV.UK. See the costs of buying a home in Scotland for the one-off bills, and EPC ratings when buying for running costs beyond tax.
Changes in value after you buy
If you extend or improve the home, the band does not necessarily change straight away. The Assessors' guidance says a change after a material increase in value takes effect only from the date the property is next sold. Proposals can also be made at any time for a material reduction in value, for example where part of the property is demolished or a significant change in how it is used, which is relevant if you are buying a home that needs substantial work.
In practice, the band you inherit when you buy is the one you should expect to pay for the foreseeable future, so treat it as a fixed cost of the home.
If you are unsure about a band, the Assessor can explain how it was set, and many sellers' solicitors can confirm the history of any earlier changes to the band.
This is general information. Rules and thresholds change, so confirm with your council or Citizens Advice Scotland before relying on them.
Frequently asked questions
Are council tax bands based on the current value?
No. They reflect the Assessor's estimate of open market value at 1 April 1991.
Can I challenge my band after buying?
Yes. A new owner can lodge a proposal with the Assessor within six months of becoming the owner or liable person.
What is the capital limit for Council Tax Reduction?
Citizens Advice Scotland says capital must be £16,000 or less unless you receive the guarantee credit part of Pension Credit.
Who sets the amount I pay?
Your local council sets the charge for each band, so the same band costs different amounts in different areas.