Council tax assumptions

Detailed notes on completion

Line 1a: Band D Council Tax

Once the Council name has been selected at the top of the form (cell C6), the standard Band D Council Tax charge for 2023-24 is populated automatically via a look-up.

Enter the Band D Council Tax for 2024-25 in Cell D14. Please provide the figure to two decimal places.  This will automatically calculate the percentage increase from 2023-24 in Cell D16.

Line 1b:  Assumed payment factor (%)

Enter the assumed collection rate used in the calculation of the amount of Council Tax expected to be raised.

Note that this assumed payment factor is now applied in CTAS after CTR.  Historically, it would have been applied to a ‘bigger’ amount – that is, the whole Council Tax expected, including Council Tax Benefit (CTB).  That ‘historic’ payment factor would have incorporated both non-payment of Council Tax, and CTB not compensated by DWP (due to overpayment and fraud).  It is now more of a ‘true’ payment factor, in that it represents the proportion of Council Tax expected to be collected from those households who are billed and have something to pay themselves.

It may well be that the assumed payment factor will need some adjustment to allow the ‘Amount to be raised from the Council Tax’ (Line 3) to be consistent with figures used by the Council in its budget-setting process.  As noted above, that factor is not consistent with the ‘historic’ ones used previously in CTAS and, all other things being equal, will be a little lower.

Line 1c:  Council Tax forgone due to Council Tax Reduction (£000s)

Enter your best estimate in (£000s), for Council Tax that would be forgone due to CTR under the reformed system, from 2017-18.  That is, The Council Tax Reduction (Scotland) Regulations 2021 and The Council Tax Reduction (State Pension Credit) (Scotland) Regulations 2012 (SSI/2021/249 and SSI/2012/319) with the addition of The Council Tax (Substitution of Proportion) (Scotland) Order 2016 (SSI 2016/368) and The Council Tax Reduction (Scotland) Amendment (No. 2) Regulations 2016 (SSI 2016/253) .

Line 2a:  Tax base (Number of Band D equivalents)

Enter the total number of Band D equivalent dwellings used in Council Tax calculations.  Do not include the additional tax-raising capacity resulting from variation in the Council Tax for second homes or long-term empty properties.

The figure to be entered is the Tax Base under the reformed post-2017 system.  That is, using the same Tax Base methodology for calculating Band D equivalents, but with the reformed 1/360th multipliers.

Each Tax Base is then automatically calculated after CTR, using the figures for Council Tax forgone due to CTR, provided in Line 1c.

Line 2b:  Net Tax Base (after non-collection)

This is automatically calculated from the previously provided information.  Again, it is given both before and after CTR.

The formula in Cells D30 (Net Tax Base Before CTR) has the effect of applying the Assumed payment factor (Cell D18) to the Tax Base after CTR, and assumes that CTR is ‘paid’ at 100%.  More simply, the payment factor is applied to the Council Tax that needs to be collected, and not applied to the CTR element.

Note that this has no impact on Council funding.  The Tax Base for GRG purposes is that before CTR and, in any event, is not taken from the CTAS return.

Line 3:  Amount to be raised from the Council Tax (£000s)

This is automatically calculated from the above figures.  It is also calculated both before and after CTR, and excludes any additional revenue raised by varying the discount applied to second homes and long-term empty properties.

Line 4a: Policy on Second Homes

Select the relevant policy option that will apply to second homes, effective 1 April 2024, from the drop-down menu.  If your Council has set varying policies on second homes in different areas (i.e. a reduced discount in some areas and increased Council Tax in others), please select ‘Other’ and provide more details in the comments box in section 6.

Line 4b: Discount/Increase on Second Homes (%)

Enter the percentage level of Council Tax discount, or percentage level of Council Tax increase on second homes, effective 1 April 2024.  Discounts should be entered as a positive value, and increased Council Tax levels as a negative value.  Where the discount has been removed, but no increase implemented, 0% should be entered.

If your Council has set varying levels of Council Tax discount/increase for second homes in different areas, or for different property circumstances, please leave this box blank and provide details in the comments box in section 6.

Line 5a: Policy on Long Term Empty properties

Select the relevant policy option that will apply to long-term empty properties, effective 1 April 2024, from the drop-down menu.  If your Council has set varying policies on long-term empty properties in different areas (i.e. a reduced discount in some areas and increased Council Tax in others), please select ‘Other’ and provide more details in the comments box in section 6.

Line 5b: Discount/Increase on Long-Term Empty properties (%)

Enter the percentage level of Council Tax discount, or percentage level of Council Tax increase on long-term empty properties, effective 1 April 2024.  Discounts should be entered as a positive value, and increased Council Tax levels as a negative value.  Where the discount has been removed, but no increase implemented, 0% should be entered.

If your Council has set varying levels of Council Tax discount/increase for long-term empty properties in different areas, or for different property circumstances, please leave this box blank and provide details in the comments box in section 6.