What was a key change in the council tax system introduced in 1991?

The introduction of council tax in 1991 marked a significant change in how local taxation was structured in the UK. The correct answer reflects that the council tax system was based on the capital value of properties. This system replaced the previous community charge (commonly known as the "poll tax") and was designed to assess the value of a property to determine the tax owed.

Under council tax, properties are assessed and placed into different bands according to their estimated capital value at a specified point in time (typically 1991). This method aligns the tax liability with the property market, allowing for a more equitable distribution based on the relative worth of different properties. It shifts the focus from the individual’s income, making the tax more aligned with those who own higher-value properties contributing proportionately more.

Other options, such as the notion of a fixed tax rate for everyone or the elimination of discounts, do not accurately describe key features of the council tax system introduced at that time. The system also allows for certain exemptions and discounts, which provides relief to groups such as students, the elderly, or individuals living alone, further countering the idea of a uniform tax rate for all residents.