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© 2017 Dwellworks
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Discovering the U.K.
Council tax is collected to help pay for local services such as police, fire, schools, roads,
libraries, and waste collection. However, it is not a direct payment for these services and is
payable regardless of whether they are actually used.
The amount payable depends upon the capital value of the property and will be obtained for
you once you have decided upon the property you wish to rent. Typically, the amount varies
per annum from around £1,000 to over £2,500 for larger properties. The amount is
calculated by the council and a bill is sent to you (the employee) at the property. The bill can
be paid by direct debit in interest-free monthly instalments over 10 months.
Stamp Duty Land Tax
Certain tenancy agreements can be taxable, and are payable by the tenant. If tax is due, it
must be paid within one month of the start of the tenancy to avoid paying a fine and interest
charges. Broadly speaking it is only those tenancies where the total rent for the tenancy is in
excess of approximately £120,000 that attract tax.
However, the rules and calculations are complex and are likely to be modified by the
Government or interpreted by case law as time goes on. You are most strongly advised to
seek legal advice through your company's HR and Legal Departments to determine whether
there is a liability in respect of your particular Tenancy Agreement.