Rebanding Council Tax - Important Steps To Be Followed

By Author: Darren Smith
Total Articles: 7
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Council Tax is the form of taxation levied on the domestic properties in the UK. These taxes are collected to contribute in financing the local services in English communities such as fire, police, schools, roads librtaries etc. Council tax in United Kingdom was introduced in 1993 and is applied to every domestic property regardless of the fact whether it is owned property or rented one. Till date, council tax is excised on over twenty million homes in England. According to the Local Government Finance Act of 1992, residential properties are divided into eight council tax bands from A to H, with Band A being the lowest band and band H is the highest. Each of the band was allocated according to the value of the property as on 1 April 1991. Each council tax band have a different level of taxation applied on it - more valuable the properties, the amount tax levied is higher. The amount of council tax paid by the dwellers in the top band, that is Band G and H is thrice the amount paid by dwellers categorized in the bottom band A. The middle band (Band - D) properties pay one and half times the amount paid by those in council tax ...
... band A properties. In England, the council tax is collected by local authority, also called collecting authority.
However, it has been found that as much as five million homes in England are in the wrong council tax band. While thousands have succeeded in their appeal of rebanding council tax, there are many more property owners who think that they are paying astronomical amount of tax because they are placed in the wrong band. For them, there are more than one ways of getting over it. But, before they seek to challenge their tax band, there are certain things that need proper assessment and introspection.
Firstly, you need to understand that challenging council tax band means re-assessment of your property value. Necessarily, it does not mean that your tax bill will undergo a price slash, rather, it can be other way round and you may end up paying more on your council tax than you do at present. Thus, it is imperative not proceed with speculative numbers, rather, perform thorough checks before challenging. The key prerogative is to have a valuation check done.
Valuation check implies that you need to assess the worth of your house and properties as in the year 1991 when council tax band was defined. You can make use of Nationwide House Price Calculator to assess the sum. Once the price is assessed, compare it with council tax band table and accordingly find out whether you are in the higher band.
Always bear in mind that that you cannot appeal to lower your existing band, but only seek for re-assessment or rebanding of council tax. Check your band with your neighbours and if you find that your neighbour’s band is in the lower scale of tax payment despite of having the same property value as yours, you can definitely ask for re-assessment. Finalize that you have not indulged in any kind of property extensions as this will end in increasing your property value.
For making an appeal for rebanding council tax, you need to contact the Local Listing Officer in case you are property owner in England and Local Assessor if you are in Scotland. Appeal can also be made online via Directgov site of VOA or Local Assessor site of Scottish Assessor Association. Here, you will be informed how your council tax band was actually decided, as well as you get the opportunity to explain why you deem your banding to be wrong.
If your appeal for rebanding council tax is rejected, you can give it another try and if you succeed, then you are entitled to get backdated rebate on the excessive amount of sum that you have been paying.