The majority of households in England are set to benefit from a one-off council tax rebate of £150 from April 2022. 80% of homes will be eligible for the extra money. Every homeowner with a property graded in bands A to D can receive the rebate. This will not need to be repaid. The rebate to bills will be made directly by local authorities from April. This one-off payment will benefit around 80% of all homes in England and is £1 billion more generous and more targeted towards lower-income families than a VAT cut on energy bills. On top of this discount, discretionary funding of £144 million will also be provided to support vulnerable people and individuals on low incomes that do not pay council tax, or that pay council tax for properties in Bands E-H. It comes as energy regulator Ofgem announced a £693 rise in its price cap, taking it to £1,971 from April. Globally, there has been a fourfold increase in the wholesale price of gas. Currently, a £700-a-year rise in the average household’s energy bills is forecasted this year.

Past performance is not a reliable guide to the future. The value of investments and the income from them can go down as well as up. The value of tax reliefs depend upon individual circumstances and tax rules may change. The FCA does not regulate tax advice. This newsletter is provided strictly for general consideration only and is based on our understanding of law and HM Revenue & Customs practice as of February 2022 and the contents of the Finance Bill. No action must be taken or refrained from based on its contents alone. Accordingly, no responsibility can be assumed for any loss occasioned in connection with the content hereof and any such action or inaction. Professional advice is necessary for every case.