Daily Junction.mobi portalCouncil tax is based on 1991 property values in England and Scotland (2003 in Wales), meaning a £500,000 house today might be in Band C if it was worth £68,000-£88,000 in 1991. The average Band D council tax is £2,065 per year in England (2024-25), ranging from £1,400 in Westminster to £2,500+ in some northern councils. Single person discount gives 25% off council tax (not 50%), while full-time students, care leavers under 25, and severely mentally impaired people are exempt. You can challenge your council tax band if you think your 1991 valuation is wrong, but only 15% of challenges succeed and you could be moved to a higher band. Council tax raises £40 billion per year (7% of total UK tax revenue) but is regressive — Band H pays only 3 times Band A despite properties being worth 10+ times more. Council tax is outdated, regressive, and unfair, but no government has dared to reform it because revaluation would be politically toxic. The system is based on 33-year-old valuations that bear no relation to current house prices, and it takes a higher percentage of income from the poor than the rich. The alternative — land value tax — is supported by economists but opposed by homeowners and landowners. Until a government is brave enough to reform council tax, we are stuck with a broken system that penalises the poor and rewards the rich.