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Council Tax

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copippin | 20:14 Sun 27th Nov 2005 | Business & Finance
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Does anyone know if places like churches,schools and community buildings in general are liable for council tax and if so how would it be assessed.
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I know that village halls do not pay any tax - don't know about the others. They still have a rateable value, (used eg for water bills), just a zero rate of tax.
Council Tax only applies to residential properties. Other buildings (unless exempt) pay business rates. These are calculated as follows:

1. The Valuation Office determine a 'Rateable Value' for the property. This is their professional estimate of the annual rent which could be obtained for the property if it was let on the open market at a specific date. (For the time being, that date is 1st April 2003).

2. Each year the government determine a figure called the 'Uniform Business Rate'. This is currently 42.2p 'in the pound' (for most properties - I'm trying to keep this simple!).

3. The local authority then issue a bill for business rates using the Uniform Business Rate as a multiplier. e.g. a big factory might have a rateable vale of �100,000 (because that was the estimate of the annual rent which could be obtained for the factory if it was let on 1st April 2003). The government has set the current Uniform business rate at 42.2p for every �1 of the rateable value. So the local authority sends a bill for 100,000 x 42.2p = �42,200.

All of the above applies to all non-domestic properties which are not exempt. Those properties which are exempt include farms (except for residential accommodation), churches and properties with rateable values of less than �2,200. There are more examples here:
http://www.bracknell-forest.gov.uk/business/bus-business -rates/bus-exempt-properties.htm

Chris
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Many thanks chris for a very comprehensive answer.You learn something new each day! You really are a mine of information.

Looking at my village hall example, it looks as though it's because it's run by a registered charity rather than because of what it is.


The demand gives a mandatory charity relief of 80% and a top up of 20% giving a zero bill

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