Council Tax in London: Bands, Discounts, and How to Register

Living in London isn’t cheap. Rent, transport, groceries - they all add up. But one bill that catches people off guard, especially when they first move here, is council tax. It’s not a utility bill. It’s not optional. And if you ignore it, you’ll face fines, penalties, or worse. This isn’t about taxes in some far-off government office. This is about your home, your street, your neighborhood. And if you live in London, you’re probably paying it - whether you know it or not.

What Is Council Tax, Anyway?

Council tax is a local tax paid to your borough’s council to help fund services like rubbish collection, street lighting, libraries, parks, and local policing. It’s not a national tax like income tax. It’s local. That means the amount you pay depends on where you live in London - not just the city as a whole.

Every property in England is assigned a value band from A to H, based on how much it was worth on April 1, 1991. Yes, 1991. That’s right - even if your flat was renovated last year or you bought a mansion in 2023, the band is still based on 34-year-old prices. It sounds outdated, but it’s the system we’re stuck with. The government hasn’t updated the bands since then, even though property values have skyrocketed.

London Council Tax Bands - What You’ll Pay

Each London borough sets its own council tax rates, but they all follow the same band structure. Here’s what the 2025/2026 rates look like for a Band D property - the most common - across major boroughs:

Band A properties (smaller homes) pay about 6/9ths of Band D. Band H (the most expensive homes) pay double. So if you’re in a £300k flat in Clapham, you might be in Band E - paying roughly £2,200 a year. If you’re in a studio in Walthamstow, you could be in Band B - closer to £1,400.

Who Has to Pay Council Tax?

It’s not just homeowners. If you’re renting - even a room - you’re likely responsible. The rule is simple: whoever lives in the property is liable. That means:

• If you’re the sole adult living there, you pay.
• If there are two or more adults, they’re jointly responsible (usually split evenly).
• Students are exempt. If everyone in the house is a full-time student, the property gets a 100% discount.
• People under 18 don’t count.
• If you’re the only adult, you get a 25% single person discount - even if you’re renting.

Here’s a real example: Sarah moved into a two-bedroom flat in Peckham with two friends. One is a student. The other two are working full-time. That means only two people are liable. They’ll split the bill - usually £1,700 each per year. But if Sarah moved in alone? She’d pay just £1,275 after the 25% discount.

Discounts and Exemptions - Are You Overpaying?

Most people don’t know they qualify for discounts. Here’s what you might be missing:

• Single Person Discount: 25% off if you’re the only adult. Apply online - don’t wait for them to notice.
• Disabled Person Reduction: If someone in the home has a severe disability, you might get a lower band (e.g., moved from E to D). This can save hundreds.
• Council Tax Support: If you’re on low income or benefits, you might get up to 100% off. This isn’t just for unemployed people - it includes those on Universal Credit, tax credits, or working but earning under £18,000 a year.
• Empty Property Discount: If you’re moving and your old home is empty, some councils give 10-50% off for the first few months.
• Second Home Discount: If you own a property in London but live elsewhere, you might pay 50% extra - unless you’re a student, in care, or on a low income.

One woman in Lewisham found out she qualified for Council Tax Support after her partner lost his job. She went from paying £1,900 a year to £300. All it took was filling out a 10-minute form online.

How to Register for Council Tax - Step by Step

You don’t get a bill automatically. You have to register. Here’s how:

1. Find your borough’s council website. Search “[Your Borough] council tax” - e.g., “Lewisham council tax”.
2. Look for “Report a change of address” or “Register for council tax”.
3. Have ready: your full name, date of birth, National Insurance number, proof of address (tenancy agreement or utility bill), and details of everyone living with you.
4. Submit the form. You’ll usually get a bill within 2-4 weeks.
5. Check your bill for the correct band. If it looks wrong, appeal it.

Don’t wait. If you don’t register, you’ll get a reminder, then a final notice, then a court summons. The council can take money directly from your wages or benefits if you don’t pay. It’s not worth the risk.

What If Your Band Is Wrong?

Maybe your flat is small but stuck in Band D. Maybe your neighbor’s huge house is in Band E - but yours is bigger. You can challenge it.

The Valuation Office Agency (VOA) sets the bands. Go to gov.uk/council-tax-bands and search your address. If you think it’s wrong, click “Check your band” and then “Appeal”. You’ll need:

• Proof your home is smaller or less valuable than others in the same band.
• Photos, floor plans, or recent sales data from similar homes.

It takes 8-12 weeks. Some people win. One man in Hackney got his home down from Band F to Band D after proving his attic wasn’t habitable. He saved £500 a year.

What Happens If You Don’t Pay?

Ignoring council tax doesn’t make it disappear. Here’s what happens:

• After 14 days late: reminder letter.
• After 7 days more: final notice - you lose the right to pay in monthly installments.
• After that: council can take you to court.
• If you lose: they can get a liability order - then deduct money from your wages, benefits, or even sell your belongings.

There’s no jail time for non-payment - but your credit score will take a hit. And if you ever want to rent another place, landlords check for unpaid council tax. It’s a red flag.

What About Students?

If you’re a full-time student - whether you’re at UCL, King’s, or a private college - you’re exempt. So is your house if everyone inside is a student. But you must prove it.

Each student needs to get a student certificate from their university. Then send it to the council. The council will then remove you from the bill. If you’re the only non-student in a house, you get the 25% discount - even if others are students.

One student in Brixton forgot to send her certificate. She got a bill for £1,800. Took her three weeks to fix it. She paid £300 in penalties. Don’t make the same mistake.

When Does the Bill Change?

Council tax bills are set every April. If you moved in January, you’ll get a bill for the full year - even if you were only there for 11 months. But you can ask for a pro-rata bill. Just call your council. Most will adjust it if you provide your move-in date.

Also, if you move out, you must tell the council immediately. Don’t assume they’ll know. If you don’t, you’ll keep getting bills - even if you’ve moved to Manchester.

Final Tip: Set Up a Direct Debit

Most councils offer a discount if you pay by direct debit. It’s usually 3-5% off. Plus, you won’t forget. Payments are spread over 10 or 12 months. No lump sums in January. Set it up when you register. It’s the easiest way to avoid stress.

Council tax isn’t glamorous. But it’s part of living in London. Know your band. Check your discounts. Register on time. Save money. Avoid penalties. It’s not complicated - just easy to ignore. Don’t let it catch you out.

If you’re moving to London, council tax is one of the first things you need to sort out. It’s not the biggest cost - but it’s the one that sneaks up on you. Get it right from the start, and you’ll save time, money, and stress.