Council tax on new build homes

What is council tax and does it apply to new build homes?

Council tax is a local tax that is payable on all residential properties in the UK, including new build homes. The amount you pay depends on the valuation band that your property falls into, which is based on its value as of 1st April 1991. The valuation bands range from A (the lowest) to H (the highest), with the amount you pay increasing as the band increases.

When you buy a new build home, the developer will inform the local council of the completion date, and the council will then assign the property a valuation band. If the property has not yet been assigned a band, the council will use other properties in the area as a guide to determine the band.

It's worth noting that new build homes may be subject to a council tax premium for a certain period of time. This means that the council tax band for the property may be higher than it would be for a similar property in the area, due to the fact that it is a new build. The premium is typically in place for the first two years after the property is completed, after which time it reverts to the standard rate.

The council tax for a new build home is typically calculated based on the valuation band and the number of adults who live in the property. If you're the only person living in the property, you'll be eligible for a 25% discount on the council tax bill. If you're a student or on a low income, you may also be eligible for council tax reduction.

It's important to note that if you're buying a new build home off-plan, you may not be liable for council tax until the property is completed and you move in. However, you should check with the developer or your solicitor to confirm the details of your specific situation.

In summary, council tax works on a new build home in the same way as it does for any other residential property. You'll be assigned a valuation band, and the amount you pay will depend on the band and the number of adults living in the property. If you're buying a new build home, it's important to factor in the cost of council tax when budgeting for the purchase.