Council Tax
Definition
A local property tax paid to local councils to fund local services such as schools, waste collection, social services, and emergency services.
Explanation
Council tax is based on the value and location of residential properties and is paid by the occupier of the property. The amount varies depending on which council area you live in and the property band. Council tax is banded from A to H, with band A being the lowest and band H the highest. The money collected funds essential local services including education, waste management, libraries, and emergency services. Entitlement to council tax benefits may be available to those on low incomes.
Why this matters for your test
Understanding council tax is important as it is a significant part of how local services are funded in the UK and affects most householders.
Source: Life in the UK Test (2025)