How is Council Tax Calculated?

How much Council Tax you pay depends on the Valuation Band your property falls into. The band for your property appears on your bill.

Every property in Fareham has been put into a band by the Listing Officer who works for the Valuation Agency, an office of the Inland Revenue.

Bands are allocated according to your property's value on the open market on 1 April 1991, assuming that it was sold in vacant possession and also assuming that it was in a reasonable state of repair. Properties that did not exist or which have been altered since 1 April 1991 are also assessed as though they were in existence on that date.

Please note that the current selling price of your property is irrelevant, as 1991 prices are used, even for new and altered properties. A planned revaluation which was due to take effect from 1 April 2007 was postponed by the last Government. 
 

The original concept for Council Tax was that the charge for each property could be divided into two parts:

• A personal element (50%); and
• A property element (50%).

The personal element is payable when two or more people who are 18 or over live in the property as their main residence. Reductions on the personal element, such as discounts for single people, are available depending on circumstances. For more information see discounts.

A reduction is also available for properties which are eligible for Disabled Relief.

• If a property is unoccupied and unfurnished, the full Council Tax remains payable
• If a property is furnished but not anyone's sole or main residence, again, the full Council Tax remains payable
• An exemption may apply to some unoccupied properties.

Bills are calculated on a daily basis, from the 1 April each year. This means that you will have to pay for every day that you are responsible for the property.

Example 1: if your normal bill is £1,000 for a year, and you move out on 30 April, you will be responsible for 29 days of this year's Council Tax. The calculation would be:

£1,000 x 29/365 = £79.45

Example 2: if you move into a property on 3 May and move out again on 11 November, you will be responsible for 192 days Council Tax.

£1,000 x 192/365 = £526.03

The charge will vary slightly in a leap year, as there are 366 days, rather than 365.

For further information please contact the Council Tax office on Tel: 01329 824651, or e-mail counciltax@fareham.gov.uk.