How is council tax calculated on new builds?

By:
 Avant Homes

Updated:
 27 February 2025

Council Tax is a tax that affects property owners in England, Wales, and Scotland. Any property that’s considered a dwelling (a self-contained accommodation that’s used as a home) is subject to this tax, including new build properties. 

It is the job of the Valuations Office Agency (VOA) to determine the Council Tax on new build homes. 

The proceeds raised from Council Tax go towards community initiatives such as roadworks, street cleaning and waste collection. 

How much is council tax on a new build?

New build owners, and indeed all homeowners, are taxed in accordance with the size of their property, the value of their property and the location of their property (with Council Tax being readjusted if the home is extended).

Based on these criteria, the Valuations Office Agency will sort new builds into a specific ‘band’.  

The amount that homeowners are taxed is based on what their property was worth on the 1st of April 1991 if they live in England or Scotland, or what their property was worth on the 1st of April 2003 if they live in Wales.

Doing this ensures that every homeowner is charged fairly and that their Council Tax isn’t affected by fluctuations in the housing market. 

If you’re interested in finding out how much your property would’ve been worth in either 1991 or 2003, the Money Saving Expert website, run by Martin Lewis, has a calculator that generates a rough estimate for you.

Why is my Council Tax band higher than my neighbour's?

Since every house is different, it isn't uncommon for neighbouring homes to be part of different Council Tax bands.

These are organised alphabetically – ranging from Band A to Band H – with Band A being the lowest tax band and H being the highest. 

Dwellings are segmented as following: 

- Band A: Property valued at ≤£40,000

- Band B: Property valued between £40,001 and £52,000

- Band C: Property valued between £52,001 and £68,000

- Band D: Property valued between £68,001 and £88,000

- Band E: Property valued between £88,001 and £120,000

- Band F: Property valued between £120,001 and £160,000

- Band G: Property valued between £160,001 and £320,000

- Band H: Property valued at >£320,000

When do you start paying Council Tax on a new build?

When you move into a new build, you need to register your property with the VOA as soon as possible and they will let you know which Council Tax band your property falls under. 

Council Tax can be legally charged from the date a property is occupied or from the date specified in the completion notice of the notice of the new build, which is a document that states when a new build is completed and officially becomes a dwelling.

You can request a provisional banding from the VOA while you’re waiting for an official banding. 

How to challenge your Council Tax band

According to the VOA, there are three acceptable reasons to challenge your current Council Tax band:

  1. If your property’s structure has changed (i.e. demolished, converted into flats etc...)
  2. If your property isn’t being used for residential purposes anymore (i.e. it’s now an office)
  3. If the design of your local area has changed (i.e. a new supermarket etc...)

If any of these apply to you, or you no longer live at a property, or your home is no longer fit for purpose – it's worth getting in touch with the VOA to see if a more favourable Council Tax band is applicable or if you might even be exempt from paying Council Tax altogether.

However, it’s vital to be able to show supporting evidence for your claims or they will be dismissed.

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