How domestic properties are assessed for Council Tax bands
The Valuation Office Agency (VOA) explains how domestic properties are valued for Council Tax bands.
Council Tax valuations are based on the value of properties that are not used for business purposes.
The value is based on the price the property would have sold for on the open market on 1 April 1991 in England and 1 April 2003 in Wales.
All properties are banded on the same basis, including properties bought under discount schemes, such as Right to Buy. The purchase price discounts applied to these properties are not taken into account when setting the band.
The Valuation Office Agency (VOA) does not use property price indexes for information or valuations.
Council Tax bands
Council Tax bands in England based on 1 April 1991 values
| Band | Value at 1 April 1991 |
| A | up to £40,000 |
| B | £40,001 to £52,000 |
| C | £52,001 to £68,000 |
| D | £68,001 to £88,000 |
| E | £88,001 to £120,000 |
| F | £120,001 to £160,000 |
| G | £160,001 to £320,000 |
| H | more than £320,000 |
Council Tax bands in Wales based on 1 April 2003 values
| Band | Value at 1 April 2003 |
| A | up to £44,000 |
| B | £44,001 to £65,000 |
| C | £65,001 to £91,000 |
| D | £91,001 to £123,000 |
| E | £123,001 to £162,000 |
| F | £162,001 to £223,000 |
| G | £223,001 to £324,000 |
| H | £324,001 to £424,000 |
| I | more than £424,000 |
Every property that qualifies as a dwelling will be banded for Council Tax. A dwelling is defined as self-contained accommodation used as a home. To decide if a property is a dwelling, the VOA first look to see if the property is either habitable or capable of repair.
In limited circumstances, we may delete the Council Tax banding from a property. This means that a property will not have a Council Tax band and the taxpayer will not pay any Council Tax until the property is banded again. This is usually following completion of work or service of a completion notice by the local authority.
If your property is occupied, we will assume it is habitable and it will not be deleted, even if significant repair or renovation works are underway.
If your property is unoccupied and either beyond repair or undergoing major works making it uninhabitable, you can apply to have the Council Tax band removed.
Council Tax band assessments
The VOA assesses properties to ensure that they are in the correct Council Tax band. They automatically assess some properties, for example when a property has been made smaller or when a property is newly built. The VOA also assesses properties when asked to do so, such as during a Council Tax appeal or band review.
Assessments are based on a number of factors, such as:
- size
- layout
- character
- location
- change in use
- value on 1 April 1991 (England) or 1 April 2003 (Wales)
You can check your Council Tax band in England or Wales. In Scotland, check your Council Tax band with the Scottish Assessors Association.
If a property has increased in size since it was first assessed, it may move to a higher band when it is next sold.
If you have any concerns regarding the assessment of your Council Tax band, contact the VOA.
Assessing new properties
A property will need to be assessed for a Council Tax band when either:
- it is newly built
- an existing property is converted to domestic use, for example a warehouse conversion
If you have moved into a property that does not have a Council Tax band, you should contact your local council. They will provide the VOA with the information they need to allocate a band.
If you have not paid Council Tax before, please read the guidance on how to start paying Council Tax.
Making sure your property is in the right band
In some situations a banding can be changed without a sale. For example, if a property is extended with a self-contained annexe.
Any increase in the Council Tax you pay will apply from the date that the Council Tax valuation list is altered. You do not need to tell us about sales, as this information comes to us from the purchaser’s solicitor via the Stamp Duty Land Tax Office.
Visits from the VOA
If the VOA is unable to get enough information to band a property, they will arrange a visit.
Usually, the VOA can get all the information they need from outside, so they will not need to disturb you. The inspector will often take photographs to save time. Generally, only 1 or 2 external pictures are necessary.
If the VOA cannot get all the information from the outside, they may ask to go inside the property. If photographs of the inside are needed, these will not be taken without your permission.
Inspections can only happen with your consent. VOA staff inspect property in accordance with the government’s code of practice on exercising powers of entry.
The VOA will arrange the visit for a time that is convenient for you. Visits usually take 10 to 30 minutes. If you have any questions, contact the VOA.
Staff always carry and present identity cards that include their photograph. If someone claims to need to inspect your home for Council Tax purposes and you have doubts, do not allow them access. Contact the VOA to check the identity of callers if you have any concerns.
Banding of Houses in Multiple Occupation (HMOs)
England
From 1 December 2023, all HMOs in England are to be valued as a single property for Council Tax. This means that rooms in HMOs will no longer have their own band. One Council Tax band will now cover the whole property.
Learn more about how to bring your Council Tax band in line with new legislation.
Wales
Many HMOs were originally built as large houses but are now occupied by multiple households. The starting point is that each separately let part qualifies as a separate dwelling with its own band, whether or not it is self-contained. There may be circumstances where the VOA can amalgamate the bands.
Example: HMOs with little or no adaptation
Where minor adaptations have been added, then the VOA can put the whole property into one band. This could be where door locks are added and the occupants of the separately let parts share the kitchen and bathroom of the original house.
Example: HMOs with adapted letting rooms
Separately let rooms in a HMO may have been adapted, for example, so that they have their own kitchenette or separate bathroom. These will be given their own band even though they may share some facilities. In making a decision, the VOA will look at the degree to which each part has been structurally altered.
Example: Purpose built HMOs
These properties would generally not be combined and would have separate assessments for each internal unit.
There’s more information available in practice note 6: premises in multiple occupation.
Your local council calculates a separate Council Tax bill for every property banded and collects payments. The council is responsible for applying relevant discounts or exemptions.
If you believe your band is wrong, or your property should not be banded at all, you may be eligible to appeal.
Holiday lets
Any property that is used for commercial purposes may need to be rated for business rates purposes, depending on how it is used.
You can find out more about the rules around holiday accommodation.
Council Tax bands and annexes
By law, any building or part of a building which has been constructed or adapted for use as separate living accommodation must have its own banding.
Some properties occupied by one household (one family unit) are identified as consisting of more than one self-contained unit.
A self-contained unit can mean:
- a living space that is separate from other accommodation
- living accommodation that is connected to and shares an access with adjoining accommodation
It should be noted that you should not expect the following alterations to impact the VOA’s decision on whether a separate area of living accommodation still exists:
- removing a sink without removing the drainage and pipework
- removing a cooker without any other works
Example
A family adapts two rooms in their house so that a relative is able to live with them. This includes installing kitchen appliances, a toilet and shower and also creating a single entrance to the new annexe. As a separate area of living accommodation this annexe would normally require its own Council Tax band.
The VOA will make a decision on every case based on the specific nature of the construction and adaptation of the property, such as:
- independent access to, or access from, a hallway, landing or other common area
- its own facilities for sleeping and preparing food
- washing facilities and a toilet
Only physical features are considered when deciding whether or not an additional area of living accommodation exists within a domestic property, not how it is used. A separate Council Tax band is still required if an area of a house, flat or other domestic property which could be occupied separately is vacant.
If you have an annexe you may be entitled to relief from the local council. You can contact your local council for more information.
Accommodation occupied by tenants would not be treated as an annexe, but it would still have its own Council Tax band.
Various discounts and exemptions are administered by your local authority.
If you have removed a separate area of living accommodation by making physical changes to your house, flat or other domestic property, you should contact the VOA. The VOA will only be able to remove a Council Tax band if the area or annexe has been sufficiently altered so that it could no longer be lived in separately.
The VOA is unable to give specific advice on any planned changes to a property. They can only explain how relevant Council Tax regulations are applied.
If you think your property has been given an additional Council Tax band incorrectly, you have the right to appeal that decision.
Alterations
A notice of alteration is a letter sent to you if your property valuation listing has changed on the Council Tax valuation list.
You will receive a notice of alteration if:
- the banding of your property changes
- a new property you own is added to the Council Tax list for the first time
- the date the banding is effective from changes
- the address of your property changes
- your property has been deleted from the Council Tax list
If you receive a notice of alteration, you do not need to do anything. If you want to appeal the decision, information is available at Council Tax appeals.
Council Tax and business rates scams
It is always free to challenge your Council Tax band with the VOA. However, you may choose to appoint an agent to carry out this work on your behalf.
If you choose to appoint an agent, you should be aware that there are a number of fraudulent Council Tax and business rates agents operating around the country.
Running a home-based business
When using your home for minor business purposes, such as using a room as a personal office, you would not normally be expected to pay business rates. Guidelines on more specific circumstances are available.
Paying Council Tax
Your local council sets rates and collects Council Tax payments. Contact your local council if you need to find out the Council Tax rates they have set or how much you should pay.
You can also pay your Council Tax online.
How properties are measured for Council Tax purposes
Houses are measured on Reduced Covered Area (RCA) basis. Flats are measured on an Effective Floor Area (EFA) basis.
Reduced covered area (RCA)
The RCA includes the area covered within the external walls, measured externally.
The RCA excludes:
- eaves overhang
- open balconies
- covered ways and external passages
- unconverted loft areas
- coal bunkers
- any extension of a temporary nature
Where there is an atrium, only the lowest level should be included (stairwells are included at each level)
The following are excluded unless they are accessed from within the main house and finished to a similar standard:
- attached and integral garages
- washhouses
- fuel stores
- conservatories
- porches
- any extension of significantly inferior quality to the main dwelling
Outbuildings are recorded separately.
Internal areas with a head height of below 1.5 metres are excluded, other than areas under stairs. A notional external wall thickness is added to each dimension before calculation of areas to maintain consistency, for example in chalet bungalows or loft conversions with sloping ceilings.
RCA compared to Gross External Area (GEA)
GEA is mostly used in the property industry for measuring non-domestic buildings. It includes:
- garages
- pavement vaults
- loading bays
- outbuildings that share at least one wall with the main building
- conservatories
- internal balconies
- fuel stores
The VOA definition of RCA is significantly different from the RICS definition of GEA.
Measuring loft conversions with sloping ceilings and making adjustments for wall thickness
Only areas above 1.5 metres in height are included. An amount for notional external wall thicknesses is added to each measurement (for a house) to adjust to RCA.
- cavity external walls - see table below for additions for each wall
- solid external walls - add 23 cm for each wall
| Type of wall | Amount to add |
|---|---|
| Cavity wall - properties and extensions built before 1995 | 28 cm |
| Cavity wall - properties and extensions built between 1995 and 2002 | 30.5 cm |
| Cavity wall - properties and extensions built between 2002 and 2022 | 33 cm |
| Cavity wall - properties and extensions built after 2022 | 35 cm |
Basements
Basement areas finished to the standard of the main house accommodation are included in the RCA. Notional external wall thicknesses are added to the internal measurements to calculate the RCA figure.
Building regulations changed in June 2022 to require a 125 millimetre wall gap. There is a transition phase, so it will not apply to properties where the planning application was made prior to June 2022 and work commenced prior to June 2023.
Effective floor area (EFA)
EFA is the useable area of rooms within a dwelling, measured to the internal face of the walls of those rooms. This basis of measurement is used for flats.
It excludes:
- hallways, landings and passages
- cupboards opening off excluded areas
- columns, piers or chimney breasts
- bathrooms, toilets and showers
- all areas with a headroom less than 1.5 metres
- areas covered by stud walls and partitions
EFA includes the area occupied by fitted units or built-in cupboards within measured rooms. It also includes the area of large walk-in cupboards and stores accessed from within the dwelling.
EFA compared to net internal area (NIA)
Net Internal Area (NIA) is the useable area within a building, measured to the internal face of perimeter walls on all floors. It includes areas enclosed and crossed by non-structural partitions, such as corridors and passages. Corridors and passages are only excluded if they are used communally.
EFA is recognised in the Royal Institution of Chartered Surveyors (RICS) code of Measuring Practice.
There are a few billing authorities in England where flats are not measured to EFA. It has no impact on how we assess your band.
Updates to this page
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Corrected formatting issues, broken links and reorganised bullet points.
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Updating Welsh Translation. Section on making sure the property is in the right band to account for the rule that annexes in Wales are entered into the list from the date of list update, implemented on 8 November 2023.
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'How properties are measured for Council Tax purposes' has been added.
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We have amended the guidance to include changes to English HMOs
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The contents on this page were updated in all sections.
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Added translation
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Added Welsh translation.
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Consolidation of information of two pages ('Banding of houses in multi occupation (HMOs)' and 'Council Tax bands and annexes')
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First published.