The Valuation Office Agency is anticipating a surge in the number of individuals contesting their council tax band in the upcoming months.
This projection stems from the customary arrival of council tax bills for the new financial year in March, detailing the annual charge and expected monthly payments.
Many households are bracing themselves for a potential increase of up to 5%, with some preparing for an even more substantial hike. Notably, last year saw the government granting permission for rate hikes exceeding this in six areas – Kensington and Chelsea, Westminster, Wandsworth, Hammersmith and Fulham, City of London, and Windsor and Maidenhead.
Prior to the distribution of bills, the VOA emphasized: «The Valuation Office Agency is entrusted with ensuring that 27 million properties throughout England and Wales are accurately placed in their respective council tax bands.
«As council tax bills are dispatched, we anticipate a rise in challenges to band placements over the following months.»
Steps to Challenge Your Council Tax Band
If you suspect that your property has been assigned an incorrect council tax band, there are avenues to dispute it – although this course of action is not without risks.
Let’s delve into the grounds on which individuals can contest their band, specifically in England or Wales (Scottish residents can refer to the Scottish Assessors Association for guidance)…
The Valuation Office Agency (VOA) for England and Wales accepts appeals based on the following criteria:
- Your property has been overvalued – substantiating evidence such as the sale price is required;
- Neighboring properties of similar or larger size are placed in lower bands;
- Alterations to the property (e.g., demolition or conversion into flats) or changes in the surrounding area since the initial valuation;
- No extensions or significant improvements have been made to justify a band adjustment;
- An erroneous valuation due to a legal ruling on another property;
- Inaccurate or incomplete property details.
Collecting Evidence for Your Appeal
Begin by determining the band of neighboring properties with similar characteristics. This information can be obtained by consulting them directly or visiting the VOA or SAA websites.
Next, assess the property’s valuation. Council tax bands are based on the property’s value in 1991 (England and Scotland) or 2003 (Wales), regardless of when the property was constructed.
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This involves several steps. If you recently purchased the property, you possess a current valuation or can obtain information from platforms like Rightmove and Zoopla.
Once the current valuation is known, tools such as the Nationwide House Price Calculator can be utilized to determine the property’s value in 1991 or 2003.
Which band does this historical valuation place you in according to the table…
Initiating the Appeal Process
If you believe the original valuation is incorrect, it’s time to present your case to the VOA or SAA.
If you suspect a change in your band since the initial valuation, your local council should be contacted.
Enhancements to your property do not directly impact your council tax, but a band adjustment may occur upon sale or in case of a lease exceeding seven years.
Pro tip: Check if a property you intend to purchase is awaiting a band review on the VOA’s council tax list. The government website offers a detailed guide on appealing in England and Wales.
A band reduction may be achieved through a review, but bear in mind that assessors could discover undervaluation of your property and potentially neighboring properties.
Consequently, your council tax bill(s) may increase.