Up to 400,000 homes in England and Scotland are in the wrong council tax bands. Yet in 10 minutes, at no cost, you can check 'n' challenge your banding, not only potentially slashing what you pay now but getting a backdated rebate stretching as far back as 1993.
Thousands have already tried this and succeeded, and stories of payouts in the £1,000s are commonplace. This is a step-by-step guide to see if you can join them.
IN THIS GUIDE
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Why you may be overpaying
Many homes are in the wrong council tax bands, and have been since 1991. Here's the story:
nce upon a time, way back in 1991, in time for the launch of its new council tax system, the Government needed every house in the land to be put in a valuation band. But time was short, and the job large, so the people in charge asked estate agents and others to help.
Yet even with all the estate agents' help, they didn't have time to get the detailed information together, so they set about doing it quick
ly by pairing up and driving down countless streets, allocating each property a band with just a glance. They became known as “second gear valuations” as they never even stopped their cars, never mind got out of them.
ly by pairing up and driving down countless streets, allocating each property a band with just a glance. They became known as “second gear valuations” as they never even stopped their cars, never mind got out of them.
Many years passed, and still nobody came to rescue the poor valuations in England and Scotland, though the Welsh Government reassessed all homes there. So the flawed old valuation still dictates much of the kingdom's banding, which is why you could be paying more than your neighbour even though you live in exactly the SAME size house.
This may sound like a fairytale, but every word is true.
How much can you expect to get?
This is no chickenfeed solution. Get your banding decreased and as well as paying £100 - £200, and sometimes up to £400, less each year, the repayment should be backdated to when you moved into the property, as far back as when the tax started in 1993. Here's some MoneySavers' success stories:"Refunded £5,110, annual saving £344. The whole process has taken about three months, but it has been well worth the wait. "
" I checked our banding and found we were the only one in our road in Band F, the rest being D or E. Using this, I wrote to the Listing Office in early February asking for the apparent error in the banding to be checked. I had an acknowledgement within a couple of weeks and confirmation of rebanding to E in mid March. We then received confirmation of overpayment from the District Council and have recently had £4,289 refunded to our bank account. All this has happened without any further action by me after writing the initial letter."
"We successfully followed the system and appealed against our council tax banding; half our street was band E and the rest band F, yet the houses are around the same in value. They sent someone to re-evaluate our house within a fortnight. We were reclassified to an E and got a cheque for over £2,000!"
Council tax cashback hits the news!
When we first launched this system in 2007 it hit the headlines in a big way, making the front page of scores of newspapers on the same day Martin presented a prime time ITV1 show on how to do it.The Government's Valuation Office Agency website, which is a key part of the technique, crashed for a week under the traffic.
We believe over three million people have now tried this system, and the successes have been huge.
In 2008 the Conservative Party said it believed 400,000 homes were in the wrong bands and in May 2009 the Telegraph suggested over 130,000 had had their band lowered due to it.
Council tax reclaiming: Step by step
Follow the steps below and you could see a payout in as little as a month:
STEP 1: THE NEIGHBOURS CHECK
By far the most important step is to find out if your band's higher than neighbours in similar or identical properties. While you could simply ask them, there's no need as it's public info.The band of every house in England, Wales & Scotland is available info via the following websites.
- In England and Wales use the
Valuation Office Agency (VOA) - In Scotland use the
Scottish Assessors Association (SAA)
So first check your band, and then your neighbours'. Do ensure the properties are as close as possible in size and value though. Sadly, the sheer scale of the database means a few properties are missed off it. If that happens, either speak to neighbours directly or contact the council and ask why.
If neighbours in similar properties are in a lower band than you, then you may have a claim.
STEP 2: THE VALUATION CHECK
A second useful step is to estimate what your house was worth back in 1991, as that's when the council tax bands were defined.
This CAN'T be used as evidence in appeals. But it enables you to check out various house prices and it's an important test that you're on the right track if you decide to appeal.
First - value your house
If you bought your house after 1991, you can simply use its price and date of sale to do this. If you rent or bought earlier you'll need to find an estimated price.
It's also worth doing this with similar neighbouring properties to check there are no anomalies.
- Go to free house price websitesTo find a price quickly, use a website which offers historic sales price information for free. These include Nethouseprices, Zoopla and RightMove.Simply put in your street and it'll tell you the prices of all properties sold in it since 2000. For more details on valuation tools, read the full Free House Price Valuationsguide.
Once you have that information, you can use it to estimate what your house would've been worth back in 1991 and what band it's in. We've built a calculator to do it for you below using house price data from Nationwide.
| Underlying data sourced from |  |
How to work it out manually
This is only a very rough indication, but still an important safety check. You may be in a higher band than neighbours because they're in the wrong band, not you. In that case, if you appeal and stay in the same band, yet theirs is increased, it won't make you popular. This additional check helps mitigate the chances of that happening.
If this test also indicates you are in too high a band, it's worth checking how far away you are from the band you're actually in as part of deciding whether to appeal. Use the table below...
| Council tax bands at 1991 property value | ||
|---|---|---|
| Band | ENGLAND 1991 Property value | SCOTLAND 1991 Property value |
| A | All properties under £40,000 | All properties under £27,000 |
| B | £40,001 - £52,000 | £27,001 - £35,000 |
| C | £52,001 - £68,000 | £35,001 - £45,000 |
| D | £68,001 - £88,000 | £45,001 - £58,000 |
| E | £88,001 - £120,000 | £58,001 - £80,000 |
| F | £120,001 - £160,000 | £80,001 - £106,000 |
| G | £160,001 - £320,000 | £106,001 - £212,000 |
| H | over £320,000 | Over £212,000 |
STEP 3: ARE YOU IN THE WRONG BAND?
At this point, we need throw in a serious warning. Challenging your band is not something to do speculatively without the checks, for one simple reason:
You can't ask for 'my band to be lowered', only for a 'reassessment', which means your band could be moved up as well as down.
It's even possible that your neighbours' band could be increased, although this is extremely rare.
This is why it is crucially important you do BOTH of the checks, and are especially careful if you've added an extension or something that increases your property's value. In terms of you being eligible for money, by far the most important check is the Neighbours Check, yet the secondary Valuation Check is useful for seeing whether your band is too high or your neighbours' are too low.
Use the table below to see how strong your case is, to help you decide if it's worth it.
STEP 4: CHALLENGE!
If you're convinced your property band's unfair, it's time to challenge it.
Write to the relevant contact below. You'll be told how your band was decided, and have the opportunity to explain why you believe it is wrong and how it should be altered. Alternatively, you can appeal online, via the Valuation Office Agency (VOA) or Scottish Assessors Association (SAA).
- In England and Wales
your Local Listing Officer - In Scotland
your Local Assessor
If you're in England or Wales, Gov.uk helps explain how to go about challenging your council tax band. You can either contact the VOA directly or check your band by entering your postcode and selecting your address from a list. Then click on the link asking if you think your council tax banding is wrong and you'll be given the option to fill out a checklist which suggests reasons you could challenge. In Scotland, contact your Local Assessor.
Remember the formal challenge checklist is more a safety check before doing the challenge. It's got very limited value in your appeal. However, if you source actual sales prices from around 1991, that's stronger evidence.
Possible outcomes
A: YOU GET TOLD YOU CAN'T CHALLENGE IT
Many people get told they can't challenge their banding, as they've been in the property more than six months.
If this happens to you, don't worry. The Local Listings Office has a legal duty to ensure all properties' bands are correct, which means, if pushed, it should investigate and alter the Valuation List if it believes it's required.
In March 2013 the Government told the ITV team on the The Martin Lewis Money Show it will push the Valuation Office Agency to consider appeals no matter when they are made.
In a statement to the show, Local Government Minister Brandon Lewis said he has agreed to write to every council to tell them "the right to ask the VOA to check their band is not limited by time". See the Minister's letter and MSE News Story.
Therefore if you get told you can't appeal, write a letter politely explaining, "I am writing to tell you I believe the council tax banding list of my property is incorrect, my house is in the wrong band, and I ask that you investigate that it is corrected."
This has worked and does work, though there are no guarantees. It can need some perseverance and you may only get a band change going forward, but no backdated payout. See the council tax successes forum thread for details of many people who've pushed through this.
If it still doesn't help, you could complain to the Adjudicator's Office which covers complaints about VOA administration (such as mistakes or misleading advice).
B: YOUR APPEAL GETS REJECTED
If you challenged your banding and your enquiry was rejected, you've got three months to appeal to the Valuation Tribunal. TheGov.uk site provides further details on appealing a decision.
Yet remember, check 'n' challenge isn't a guaranteed system. The two checks are a strong indication that you should consider challenging your banding; but that doesn't mean it will always actually be lowered.
We often get emails from people saying “I went through all the steps, they investigated and turned me down – what now?” If that happens, then unless you've a very compelling reason, unfortunately it's probably time to give up.
C: YOU SUCCEED!
Expect to have your band lowered and ensure you get a backdated rebate from the moment you moved into the property (or 1993, whichever is later). You may also want to consider contacting previous occupants, as they should be entitled to a payout too.
Please share your story. The more info I have, the better I can finesse this system. Please report your council tax rebanding successes on the forum.
Council tax rebanding Q&A
Here are a few commonly-asked questions. If yours isn't answered below, take a look at the forum discussion.
Do payouts mean everyone else in the area will pay more?
Why doesn't this apply to Wales & Northern Ireland?
My property usage has changed, can I still apply?
A company has said it can get my council tax back for a fee, is this true?
What does council tax get spent on?
What type of properties have to pay council tax?
Can I do it if I rent/am a tenant?
Are 'second gear valuations' for real?
What should I do if I think I'm in too low a band?
Ensure you're getting council tax benefits & discounts
Depending on where you live, here are a few options to help manage your council tax bill:Pay council tax bills over 12 months, not 10
Many people have complained to us that council tax is paid over 10 months rather than 12, making monthly budgeting difficult (as you pay monthly for 10 months then get a two-month holiday).
From April 2013 the Government has announced all councils in England must allow you to pay your council tax over 12 months if you request it.
However, we've heard there are worries that as it may impact their cash flow, some councils may not go very loud on telling people about this option. If you want to change, it's safest to contact it yourself.
How do I do this? If you're resident in England, contact your local council and tell it you want to change to the new payment schedule.
Each council will have its own deadline for switching bills, but local authorities are required to reissue new bills for those switching to payments over 12 months by 15 April 2013, so your deadline to let them know will be before this date. For more info see the MSE News story.
Are you eligible for money off your council tax bill?
From April 2013 the current national system of council tax is being localised and each local authority will be able to decide what support to offer to its residents. Some groups are protected, eg, pensioners, but everyone else could be affected.
Some of the discounts and benefits below may not be available in your area; contact your local authority to ask.
Council tax band changes aren't the only way to save money. Under certain conditions you're able to get a reduction on your council tax bill, or possibly be exempt altogether. If any of the following circumstances apply to you, contact your council immediately as you need to apply; reductions are not deducted automatically.
- Do you live alone?The full bill usually assumes at least two adults are living in a property. So if you live alone, or are the only adult (disregarding anyone in full-time education), you may be eligible for a single person's discount, meaning a 25% reduction.
Bearing this in mind, inform the council as soon as possible if your circumstances change through a housemate/lodger leaving, becoming a student, separation, divorce, or the death of a partner/spouse. - Are you on a low income?If you're on a low income (and don't have much in savings) you may be able to receive council tax support to help ease the burden. The 5 Minute Benefit Check-Up will assess your eligibility and suggest if you may be entitled to any other financial support.Your bill could also be reduced by applying for the Second Adult Rebate if you share your home with someone who is aged at least 18, (they can't be your partner) on a low income and not paying rent or council tax themselves.
- Is your property being renovated or is it empty?For unoccupied and unfurnished properties which need or are undergoing major repair work to make them habitable, you may be able to claim a council tax exemption for the first 12 months, provided the previous owner didn't.
For any length of time after that, you may be entitled to up to a 50% discount off the normal rate. If your property is unoccupied and unfurnished, but not being renovated, the council may grant an exemption for up to six months. - Do you have a second home?You're liable for the full council tax on a second home. However, you could receive a reduction at the discretion of the appropriate council.
- Do you have a disability or are you a carer?Reductions for disability may be available, eg, if for accessibility purposes you have to live in a large home or you've had to make modifications. Discounts could also be available for live-in carers if they look after someone with a disability who isn’t their partner for at least 35 hours a week on average.
Further information on council tax reductions, and a guide to claiming these, can be found on the Gov.uk website.
Get student council tax discounts
If you're a full-time student living alone or with other students you don't need to pay council tax, whether there's two, three or even 10 of you living together.
- Live with a non-student? If a student lives with a non-student, the student is disregarded, so council tax could be reduced as if only a single person lives there. So the non-student may get the 25% single person's discount. But this poses a moral dilemma.
Is it fair for the non-student to pay the entire 75% points due, or should the student contribute?
From the student's perspective, they wouldn't pay anything if their housemate was also a student. From the non-student perspective they’d only pay 50% of the bill if their housemate was also a non-student.
Therefore our suggestion is to split the 25% difference between the two, so the non-student pays 62.5% and the student 12.5%. - Live with more than one non-student? Here, while the student again is exempt, because there are two non-students the house has to pay the full 100% charge. So again it gets complex - the student hasn’t added to the council tax bill, but nor has their presence resulted in a discount.
You'll need to decide if and how you want to split it, though the legal stance is that full-time students aren't liable for the bill if non-students can't or don't pay.
You need to apply to your local council for these discount, they aren't deducted automatically. To apply, visit Gov.uk.
