Council Tax and the Law: What you should know
Page updated on: 10/12/2025
Since 1993, local councils have had the job of collecting Council Tax. This is a tax paid on homes in the council’s area.
Most people aged 18 or over who own, rent or live in a home must pay Council Tax. There are some exceptions.
Council Tax is not a contract. You do not “sign up” for it. It helps pay for services in the whole area, like rubbish collection, roads and libraries. Everyone who pays Council Tax helps fund these services.
You can find more information on our website and on Gov.Wales.
The Law About Council Tax
Council Tax started in the Local Government Finance Act 1992. Other important rules are the Council Tax (Administration and Enforcement) Regulations1992
These laws were made by Parliament, which is the main law-making body in the UK. Because of this, Council Tax must be paid by law. You do not need to agree or sign a contract for it to apply to you.
If you do not pay Council Tax, the council can take action. You may have to pay the full amount at once, you might get extra charges, and in very serious long-term cases, not paying could lead to prison.
Common Questions About Council Tax
The council receives various questions and statements regarding Council Tax.
Frequently asked questions and the council’s answers to these questions are set out below:
Yes. Parliament is elected by the public and makes laws for the whole UK. These laws apply to everyone in the UK.
Yes, because it is required by law. Council Tax is not a contract. You do not need to sign anything, and you cannot refuse to pay because you do not agree with it.
No. Council Tax funds local services, and you must pay it even if you disagree with government policy.
Yes. It follows the rules set out in the Council Tax laws. You must pay the amount on the bill.
Yes. All people in the UK must follow UK laws, including Council Tax laws.
No. Your name or how you identify does not change your duty to pay Council Tax. If your name is wrong on the bill, please tell us.
No. The council is a local authority, not a private company. Council Tax does not include VAT.
These are legal terms defined in the Council Tax laws. You will need legal advice if you want a full explanation.
The council publishes this in its Statement of Accounts and on our Council Tax Notice page. Money that goes to other organisations, like Dyfed-Powys Police and Crime Commissioner and Town and Community councils, are shown on your bill. Those organisations publish their own spending information.
No. Pound Sterling is the official UK currency by law. Council Tax must be paid in Pound Sterling.
No. By law, these coins are only “legal tender” up to 20p. The council is not required to accept them.
No. Council Tax laws follow the Human Rights Act and are considered fair and legal.
No. The council is legally required to collect Council Tax. This is not harassment. A cease-and-desist letter will not stop this.
No. Sending Council Tax bills is part of its legal duty.
Yes. The council’s constitution gives officers the authority to send bills and letters.
If Council Tax is not paid, the council can make a complaint to the Magistrates’ Court. The court then issues a summons for you to attend.
No. The law does not require the council to stop action just because a person disputes the bill.
Yes. Magistrates’ Courts can hear Council Tax cases and issue liability orders.
No. A rubber stamp or printed signature is allowed under UK law.
No. That case does not cancel liability orders. They are still valid and enforceable.
The council uses your data because it has a legal duty to collect Council Tax. This is allowed under the UK General Data Protection Regulation and the Data Protection Act 2018. You can find out more about data protection on our data protection page and what we do with your personal data in our Council Tax Privacy Notice.
Yes. You do not have to be present for the court to make a liability order.
Yes. You can request one. The order is valid as soon as the court makes it. It does not need to be put in a special register for it to be enforceable.
The above information is for reference only. It is not legal or financial advice and is not intended to be any such advice. If you are at unsure about the Council Tax legislation or your obligations under the Council Tax legislation you should seek your own independent legal and/or financial advice.
