What is Council Tax and How is it Applied to Expatriate Housing?

Council Tax and Your Expatriate Housing on Assignment

As expatriates assigned to the United Kingdom search for rental housing, they often ask about Council Tax. While it can seem confusing at first, there are numerous online sources that explain what Council Tax is, how it is applied, who pays it, and when it should be paid. Below are the answers to these four essential questions about Council Tax:

1. What is Council Tax?

Council Tax is a tax on domestic property in England, Scotland, and Wales. This is a Band-based system assigned by property value and the tax is a fixed amount per band.

2. What is included in Council Tax?

Local services like trash collection, schools, street lighting, etc. are funded through Council Tax. In Scotland, Council Tax also covers water and sewerage.

3. Are tenants required to pay Council Tax?

Yes. If there is a fixed-term lease for six months or longer the tenant is responsible for the Council Tax.

4. How is Council Tax handled for International Assignees?

Council tax cannot be calculated as a percentage of rent and because of this, AIRINC is unable to provide estimated costs and does not include it in our rent or utility budgets. As it is standard practice for tenants to pay the tax directly to the local Council, the recommended approach is for employers to reimburse the assignee directly for this expense.

Want to learn more about Council Tax?

The City of London’s website outlines banding information throughout the city.
This website supplies England and Wales Council Tax Banding info by address.
This website supplies Council Tax information by Postcode.
Wikipedia has a great deal of helpful background information on Council Tax.

Expatriate Housing and your International Assignees

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About AIRINC

Listen | Partner | Deliver. For over 60 years, AIRINC has helped clients with the right data, cutting-edge technology, and thought-leading advice needed to effectively deploy talent worldwide. Our industry expertise, solutions, and service enable us to effectively partner with clients to navigate the complexity of today’s global mobility programs. As the market continues to evolve, AIRINC seeks innovative ways to help clients address new workforce globalization challenges, including mobility program assessment metrics and cross-border talent mobility strategy. Our approach is designed with your success in mind. With an understanding of your goals and objectives, we ensure you achieve them. Headquartered in Cambridge, MA, USA, AIRINC has full-service offices in Brussels, London, and Hong Kong. Learn more by clicking here.