Council tax assumptions

General points and effect of Council Tax Reduction

Unshaded (white) cells are to be completed by the Local Authority.  Green shaded cells are calculated automatically from the data provided.

The form was previously revised as a result of the CTR scheme, which provides recipients with a reduction in their Council Tax liability.  These amounts are forgone by Local Authorities, so that CTR acts to decrease the Council Tax income of Local Authorities.  The awards are not refunded directly, as was the case in the former Council Tax Benefit system, but instead, a general block grant from the Scottish Government is given to Local Authorities to compensate them for Council Tax income forgone.

The Band D Council Tax charge can still be thought of as Council Tax income divided by the number of Band D equivalents (with an adjustment for the expected collection rate).  However, with the Council Tax income decreasing due to CTR, the Band D equivalents figure will reduce in turn, as per CIPFA’s LAAP Closure of Accounts Bulletin 2013/14  

Only the following are requested in the main financial section (Lines 1 to 3):

• Band D Council Tax for 2024-25
• assumed payment factor

• Council Tax due to CTR

• Tax Base (before CTR)

For reference, the multipliers are:

The amount to be raised in 2024-25 from the Council Tax is calculated from the above figures, as per the reformed Council Tax system from 2017-18.

For completeness and consistency with earlier years, the figures for Band D equivalents (the Tax Base) and Council Tax income (amount to be raised from the Council Tax) are calculated on the form before and after CTR is taken account off.

Long-Term Empty Homes and Second Homes (Lines 4 and 5):

6. The Council Tax (Variation for Unoccupied Dwellings) (Scotland) Regulations 2013 No. 45 gives Local Authorities the discretion to reduce or retain the Council Tax discount on second homes and long-term empty properties to between 10% and 50%, with certain exemptions.  This additional income is ring-fenced and retained locally to support affordable housing.  It can be used by Local Authorities, or routed through Registered Social Landlords or disbursed by Local Authorities to organisations or individuals.

7. For second homes, The Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2016 No. 369 gives Local Authorities discretion to abolish the discount on second homes from 2017-18.  Local Authorities can therefore offer a discount of between 10% and 50% for second homes, or give no discount at all. Further to this, The Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2023 will come into force in on 1 April 2024.  This will allow local authorities to charge up to double (i.e. an increase up to 100%) the full rate of Council Tax on second homes.  It will bring second homes into line with long-term empty homes from 1 April 2024.  

8. For long-term empty properties, Local Government Finance (Unoccupied Properties etc.) (Scotland) Act 2012 and subsequent SSI's linked below gave Local Authorities discretion to increase the Council Tax.  They may charge a Council Tax increase of up to 100% (i.e. double the rate of Council Tax payable) for certain dwellings which have been unoccupied for one year or more (or two years or more for unoccupied dwellings marketed for sale or let).  Therefore, for eligible unoccupied properties, Local Authorities can set a discount of between 50% and 0% or an increase of up to 100%.  The provision also gives discretion to vary the Council Tax charged for different circumstances.  This could include charging different rates according to the area the dwelling is in; the length of time that the dwelling has been unoccupied and such other types or characteristics of dwellings, or circumstances relating to why they are unoccupied.

9. The level of central government grant will not be reduced as a result of Local Authorities abolishing the discount for second homes or varying the level of Council Tax for long-term empty properties.  For the purposes of the calculation of the Council Tax Base for General Revenue Grant (GRG) purposes, second homes and long-term empty properties continue to be assumed to be in receipt of 50% discount, regardless of the actual discount received or increase charged. Therefore, all additional revenue expected to be raised through the above-mentioned discretionary powers is excluded from the figures supplied in the CTAS 2024 return.

List of subsequent SSI's

•  The Council Tax (Variation for Unoccupied Dwellings) (Scotland) Regulations 2013 (SSI 2013/45)

•  The Council Tax (Administration and Enforcement) (Scotland) Amendment Regulations 2012 (SSI 2012/338)
•  The Council Tax (Exempt Dwellings) (Scotland) Amendment  Order 2012 (SSI 2012/339)