Local Government Finance Act 1992 in the context of Council tax

Council Tax in Scotland is a tax on domestic property which was introduced across Scotland in 1993, along with England and Wales, following passage of the Local Government Finance Act 1992. It replaced the Community Charge (popularly known as the Poll Tax). Each property is assigned one of eight bands (A to H) based on property value, and the tax is set as a fixed amount for each band. Some properties are exempt from the tax, some people are exempt from the tax, while some get a discount.

Council Tax is a local taxation system used in England, Scotland and Wales. It is a tax on domestic property, which was introduced in 1993 by the Local Government Finance Act 1992, replacing the short-lived Community Charge (also known as "poll tax"), which in turn had replaced the domestic rates. Each property is assigned one of eight bands in England and Scotland (A to H), or nine bands in Wales (A to I), based on property value, and the tax is set as a fixed amount for each band. The higher the band, the higher the tax. Some property is exempt from the tax, and some people are exempt from the tax, while some get a discount.

In 2011, the average annual levy on a property in England was £1,196 (equivalent to £1,841 in 2023). In 2014–15, the tax raised enough money to cover 24.3% of council expenditure.