Wealden District Council

How Council Tax is calculated

Step 1 - the tax base

The first step in arriving at a charge per property is to calculate a tax base. This is calculated by the district council and is worked out by multiplying the estimated number of properties within each band by the 'Band D Ratio' and adding the results together. This produces an equated tax base, i.e. as if all properties were in band D. The following table sets out a simple example of how a tax base for a parish council would be calculated:

Band

Number of properties

Ratio to Band D

Band D Equivalents (number of properties x Band D Ratio

Example of how a Parish tax base is calculated

A

90

6/9

60

B

90

7/9

70

C

90

8/9

80

D

90

9/9

90

E

90

11/9

110

F

90

13/9

130

G

90

15/9

150

H

90

18/9

180

The total of the Band D equivalents is 870.  The tax base is therefore 870.

Step 2 - the precept

The next step is to work out how much the parish council needs to spend. The parish will draw up a budget and the amount it needs to raise in Council Tax is called its precept.

Step 3 - work out the Council Tax

In order to work out the Council Tax you then divide the precept by the tax base.

So, if the parish has a precept of £7,000 the Council Tax will be:

£7,000/870 = £8.05, therefore;

Band D Council Tax = £8.05