Applying to have your home re-assessed for council tax has its dangers as well as potential rewards. Your council tax bill could end up rising!
The furore that hasbeen whipped up over council tax banding plays perfectly both for the media desperate for a story and to the hard-pressed taxpayer, exasperated by ever increasing demands on their finances from local and central government.
The story in brief is this: during the rush to value properties so they could be ‘banded’ for council tax some of the valuations given were wrong. This could mean that some properties are therefore in the wrong council tax bands and that their owners are therefore paying too much – or too little – council tax.
Look before you leapGiven that these property valuations were carried out by estate agents on behalf of local councils looking to raise revenue, my guess is that any banding mistakes were over-estimations of property values and so, yes, some people may be in bands that are too high.
But before you rush off to claim, bear in mind that if your home is re-assessed for council tax you could end up paying more – not less. Council tax bands are based on property values in 1991, if your home has been extended or converted from its original design you might end up in a higher band than before. Any loft conversions, conservatories or such like could add to your council tax bill if your home is re-assessed.
According to the Valuations Agency only 4.3% of the 21 million homes in the UK have had their council tax bands reduced since 1993. Ultimately, it is only if you home is different from the other properties in the area or if it has been converted from a larger property that you should consider a claim.
How to claim a rebateIf you believe that you are in the wrong band – after talking to neighbours and doing your research – then apply to the listings officer at your local council if you have been in your property for less than six months. Alternatively apply online at the Valuation Office Agency (VOA) or the Scottish Assessors Association.
See the VOA website for more information
See the table below for the council tax bands currently being used as well as the equivalent value of the bands using house pricesasof December 2006. You will see that a home worth up to£40,000 would now be worth up to £124,000 etc.
One final note is that the government intended to revalue all the council tax bands to take account of the sixteen years of property price rises since 1991. They have gone ahead with rebanding in Wales already and Northern Ireland also has had its charging structurechanged to a percentage of property value system.
Government will have its hands out for yet moreBut the banding review in England has been put off until after the general election - the governmentknow that the inevitable increase in bills for most people is a big vote loser. If you really believe that you are in the wrong band then it may be as well to get yourself re-assessed now rather than later.
But also remember that if you end up being bumped up a band it could end you costing you a lot more if Labour win the next election (the Tories oppose the rebanding and the Lib Dems want council tax scrapped and replaced with a local income tax).
Use
this website to find out who your MP is and to email them about council tax rebanding. Let them know your views and ask them, as your representative in Parliament, to make your views known to the government.
Write to your MP using this website and make your views clear
Council Tax bands and today’s equivalent values| Council tax bands | 1991 property values | 2006 equivalentvalue |
| Band A | Under £40,000 | Under £124,000 |
| Band B | £40,001-£52,000 | £124,000-£161,500 |
| Band C | £52,001-£68,000 | £161,500-£211,000 |
| Band D | £68,001-£88,000 | £211,001-£273,000 |
| Band E | £88,001-£120,000 | £273,000-£320,000 |
| Band F | £120,001-£160,000 | £320,501-£497,000 |
| Band G | £160,001-£320,000 | £372,501-£497,000 |
| Band H | £320,000+ | £993,500+ |
Source: Council tax bands and Nationwidehouse prices as at Dec 2006
