How To Tackle Council Tax When Moving Out?

How To Tackle Council Tax When Moving Out?

When you move home, you may have an endless list of pending tasks. It includes informing the utility supplier to cancel the broadband connection. One thing that you must update is the Council tax. You pay it to the local authority where you currently stay. Thus, inform the local authority of your move. It will help you avoid unexpected costs later.

What does a council tax mean to be precise?

A council tax is a tax on a local residential property in an area. The local council use the tax money to provide the facilities. It includes facilities like- rag picking, clean roads, policing, fire services, street lights and maintenance. Council tax replaced Poll tax in 1993. Since then- individuals have paid the relevant amount as council tax. The amount is based on the market value of the individual’s home. It may vary depending on the local council.

Whether an individual rents or owns a home, you must pay council tax. Additionally, you must be 18+ to pay the council tax.

1.  How to calculate a council tax?

One can calculate council tax by analysing the valuation bands. There are usually 8 valuation bands in England and Scotland, ranging from A. Wales has 9 valuation bands from A-I. In England and Scotland, calculate the council tax by analysing the property price according to April 1991. It implies it calculates the home value if it were sold in 1991. To calculate what you will pay, use a house price calculator.  It works like this:

  • Choose the property location by country or living area postal code.
  • Select a region like the East Midlands. You can also choose Greater London, Northern Ireland, etc.
  • Choose the property value currently for example £240,000
  • Select the year and month that your property was last valued. For example- 2020, April, May, June (Q1)
  • Analyse the time you want to compare the house price to. For example- 2024, January, February, and March tenure.

:Thus, from Q2 in 2020- £240,000, your property value in Q1, 2024 is£279,671. The property price increased by 16.53%. According to the latest band structure, you must pay £3748.25 according tothe council tax range in the year 2024/25.

 However, individuals living from paycheck to paycheck may struggle to finance. Yes, it is a small amount but moving and storage costs make it impossible. Alternatively, non-repayment by the due date may attract penalties.

Here, you can utilise existing debts to your benefit. If you have pending credit card debts, payday dues, utility bills, overdrafts, etc., merge them.

 You can get better options to do so with low credit also. For example- check debt consolidation loans for bad credit from a direct lender nearby.  It allows you to merge debts and free up some cash despite poor credit history. Individuals with stellar income may qualify quickly. Later, you can use the cash to finance the council tax payments.

BandProperty valueCouncil tax
AUp to £40,000£1,156.99


It further indicates the home values and the council tax for the band A-D. Similarly, you can spot the home within your band and know the council tax amount to pay.

2. When should I Notify the local authority about the move?

You must notify before a week or shortly after the day you move.  You can do so by visiting the respective website or contacting them. Additionally, provide the date when you sold the property or moved out of the tenancy agreement. It helps to keep a smooth and updated council tax record. Moreover, informing the local authority about council tax helps you cancel it. It is because you no longer belong to the local colony.

By notifying them, you can save yourself from a whopping bill that you may receive as a resident(as to them, you still are a resident). They may cut the sum through direct debits also. Make sure to check this alongside informing the local authority. Additionally, check your mail delivered to the old address. It may be from the council office. Respond to it timely or else you may incur a fine.

3. What happens to the council tax when you move?

When you legally inform the council or the local authority of the shifting, you get the final bill. After which, you can legally stop the payments.

Then, you can register with the new local authority and pay the council tax accordingly. Additionally, if moving locally, use the same direct debit management. It will help you set up the council tax account with the new address without delay. However, if relocating to a new area, you must make a new account.

If you own the home and is empty when you shift, you still pay a council tax. However, that is at a reduced rate. Still, shifting comes with so much expense like- re-arranging the belongings, paying the movers, taking up a new broadband connection, telephone connection, and of course, a deposit.

Out of this, the deposit is a must to rent. If short of cash, get 12-month loans from a direct lender nearby. You may use it to finance the deposit costs and rent without worries.  It is ideal for low-budget individuals. You can spread up the repayments into 12 months or less.  Pay according to your liabilities, current expenses and income.

Alternatively, tenants need not pay any council tax on the property after shifting. Knowing such things will help you avoid last-minute financial surprises. Avoid it especially when moving. No one knows the total money you may spend moving.

4. When do you begin the council payments after moving?

Your council tax responsibilities begin from the day you moveinto your new abode or rental space. If you moved within the same vicinity, your direct debits move the same way. Otherwise, register for the new council tax timely. Else, you must pay the back-dated amount as well.

Bottom line

Thus, you can tackle the council tax while shifting smoothly. If alone in the property, you may claim a 25% reduction on the council tax. However, analyse the terms that you must meet to qualify.  Other taxpayers like disabled individuals may also claim relief on council tax.

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