How to cut your council tax bill by challenging your band
It is estimated that hundreds of thousands of people are paying the wrong amount of council tax due to being placed in an incorrect council tax band.
This could have happened because of changes over the years – perhaps it was once a larger property that has since been split into flats, for example, or maybe it was wrong from the start.
If you suspect you’re in the wrong council tax band, you can ask for it to be reassessed. If you’re successful, your council tax bills will get cheaper – but there’s also a risk of being placed in a higher band and paying more.
In this guide, Telegraph Money outlines the steps you need to take:
Step 2: Check your current council tax band and property details
Step 8: Prepare and present your case for a tribunal hearing
Step 1: Understand how council tax bands are worked out
In England, properties are placed into one of eight bands (labelled A to H) depending on what the house would have been sold for on 1 April 1991. These are shown in the table below:
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If the property didn’t exist in 1991, an estimate of its value will be made based on the property’s size, layout, style and location compared to similar properties in the same area.
In England and Wales, the Valuation Office Agency (VOA) will make the assessment, whereas in Scotland it’s the Scottish Assessors Association (SAA).
Properties in Scotland are also placed into eight bands labelled A-H. However, the valuations are different:
Meanwhile, in Wales, there are nine bands (A-I) and these are based on property values on 1 April 2003. The table below shows how the bands are split:
The Northern Ireland system works differently, based on a system of domestic rates.
Step 2: Check your current council tax band and property details
You can find out the council tax band for a home in England and Wales by visiting the Government website and typing in the relevant postcode.
Choose the correct property details from the list provided and the site will show its local authority reference number, council tax band and what date it took effect.
Your own band should also appear on any council tax bill sent to your address by the local authority.
Once you know your tax band, you can use our council tax calculator to find out how much you’re set to pay this year.
Step 3: Gather information for similar properties
The next step is to begin working out whether your property is in a different band to other comparable properties in your area.
The postcode search tool linked to in Step 2 will show a list of all properties in your postcode and which council tax band they’re in.
If you happen to know which are similar to your own, that can provide a basis for your argument – otherwise it might be worth having a look around to scope out similar properties on surrounding roads.
It could be worth asking your neighbours about their council tax band.
Step 4: Obtain a 1991 property valuation
The key to establishing whether or not a property is in an incorrect council tax band is down to its 1991 value in England, or 2003 in Wales.
This is tricky, since many properties around today did not exist in that year, or have changed substantially since.
There are several tools from lenders and property portals that will calculate the past value of your property. These can be useful to get an idea of the value, but the VOA will not accept the results as evidence when making a challenge.
The VOA may accept property sales price information of your property or similar properties in the area between:
April 1 1989-March 31 1993 for properties in England
April 1 2001-March 31 2005 in Wales
You can search for past property prices online via the Government website.
Once you know how much yours or similar properties sold for during the relevant time period, you should compare the value against the council tax band thresholds.
If your council tax band doesn’t match up, you could have a case.
Step 5: Collect supporting documents
Now you’ve got information about how similar properties are in a different council tax band, and how much the property would have been worth in 1991, you need to collect relevant documents.
This will vary depending on the circumstances. If you think the property should move bands because of changes, you should give a description of what they are – they might be details of the property’s change of structure, if there’s been a change of use, whether any physical works have taken place or how your local area has changed physically.
If you think your band is wrong, you’ll need to provide addresses for at least five properties that are similar to yours and which are in a different council tax band.
They’ll need to be of the same or similar type (detached or semi-detached, for example), size, age and style. If you live in a town or city, they must be on the same street or estate or in the same village if you’re in the countryside.
You’ll need the properties’ addresses, sale prices and the date each property was sold.
Land Registry details, invoices for works, photographs, copies of old newspapers showing properties for sale, and past tribunal decisions are examples of evidence that could be useful.
Step 6: Submit an informal challenge
The first step to getting your council tax band changed is to make a challenge – this request will go to the VOA, and it’s an informal challenge at this stage.
You can begin the process online. The government website has a portal where you can enter your postcode to search for a property – simply select your property from the list and then click the “Challenge this Council Tax band” button. You’ll then be guided through the required steps.
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Alternatively, you can contact the VOA by email at ctinbox@voa.gov.uk – or phone 03000 501 501 if you’re in England, or 03000 505 505 if the property is in Wales. Phone lines are open Monday to Friday, from 9am to 4.30pm.
A challenge can take up to two months to review – if more evidence is required, then the VOA will get in touch.
After this time, it will either change your council tax band and adjust your payments accordingly, or explain why your band cannot be changed.
In Scotland, the SAA website sets out the required steps for making a proposal to alter your council tax band.
Step 7: Appeal to the Valuation Office Agency (VOA)
If your band has not been changed, you may be able to make an appeal to the Valuation Tribunal in England, or the Valuation Tribunal for Wales.
The decision provided by the VOA will tell you whether you can appeal, and how to go about it.
Broadly, if there’s been a change affecting your property, you can appeal – if you think your property is simply in the wrong band, you can only appeal if you’ve been in your property and paying council tax for less than six months, or if your band has changed in the last six months.
Appeals must usually be made within three months of receiving the decision. The process is free, but you have to pay your own costs.
Step 8: Prepare and present your case for a tribunal hearing
Preparing for a tribunal hearing might be daunting, but the valuation tribunal website has a wealth of information on how the appeals process works, and how to prepare for the hearing.
The main thing to consider is how to convince the tribunal panel to support your case. You’ll need to explain what you and the VOA disagree on, and set out your arguments for why you believe its decision was wrong.
For the strongest case, refer to any legislation or previous tribunal cases that support your argument, and try to gather more evidence to support your case.
The tribunal process can be lengthy, and currently takes around nine months. The first step is to complete an appeal form within three months of receiving the appeal decision from the VOA.
You’ll then be required to attend an appeal hearing. According to the Valuation Tribunal website, these are being conducted remotely. The panel will ask you and the VOA to present your cases. You can ask questions, and should be prepared to answer questions about your case.
You can contact the Valuation Tribunal on 0300 123 2035 for help.
The outcome should be sent to you as a decision notice within one month of the hearing – you can choose how you want to receive this. This will include the reasons why the decision was reached.
Step 9: Understand the outcome
The Valuation Tribunal’s decision is final. Decision reviews and getting the case reheard by a different panel will only happen in limited circumstances, such as if there are mistakes in the decision or if the panel misunderstood your arguments.
If the decision is in your favour, the VOA must change the band within two weeks, and it must then inform the council within six weeks. The council will then recalculate your council tax bill.
Decisions are published on the Valuation Tribunal’s website. You can apply to have certain information removed, but it will still show whether your proposal was successful or not.
You can download a pdf of the Valuation Tribunal’s guide to understanding its decision at Step 7 of its guide to the appeals process.