Money-saving guru Martin Lewis has urged all Brits who have moved house in the last six months to check their Council Tax band – as hundred of thousands of households are thought to be overpaying
Martin Lewis has urged Brits who have recently moved to make one Council Tax check that could be worth £1,000s. Earlier this year, more than 150 top-tier local authorities in England increased their Council Tax, with six areas given permission from the government to exceed the 4.99 per cent spike without triggering a local vote or referendum.
The news came alongside multiple bill hikes – including soaring energy costs, higher road taxes, and even a more expensive TV Licence – in what was nationally dubbed as ‘Awful April’.
Used to fund services such as rubbish collection, roads, and street lighting – Council Tax is controversially based on the price your property would have sold for on the open market on April 1, 1991, in England, or 2003 in Wales. This means many Brits living in new build homes pay are on a higher tax band than those in million-pound houses that were built way before 1991.
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However, it is thought that hundreds of thousands of homes across England and Scotland are thought to be in the wrong Council Tax band altogether. “Moving or just moved house?” Martin Lewis wrote on X (formerly Twitter).
“One of the most important things you should do is check whether you’re in the right council tax band. You only have six months to make a formal challenge, after that it’s much trickier.”
As Martin explains on his MSE website, the valuation of Council Tax bands was a rushed job – and in an attempt to band every house in time for the 1991 ruling, desperate officials asked estate agents to help.
“They didn’t have time to get the detailed information together, so [estate agents] set about doing it quickly by pairing up and driving down countless streets, allocating each property a band with just a glance,” the money-saving expert wrote. “They became known as ‘second-gear valuations’ as they mostly never even stopped their cars, never mind got out of them.”
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If you’ve just moved house – it’s worth checking to see whether you’re in the right band. You can start off by finding out if you’re in a band higher than your neighbours, or similar properties in your area using the Government’s website. This is a good indicator as to whether you’re being overcharged.
But, it’s important to understand that you can only ask to have your band revalued – and not just request if it can be lowered. This means you risk having your band (or your neighbour’s band) increased – which has happened in the past.
If you’re still certain you’re in a higher band than you should be, you can calculate how much your house was worth in 1991 (if it’s old enough) for free on housing websites such as Zoopla and Rightmove. This mainly applies to those living in England as Wales revalued its properties much more recently.
“In general you must’ve lived in the property for six months or less (it doesn’t matter whether you own or rent, though if renting you should notify the landlord as a courtesy),” Martin added. “If you’re able to challenge formally (also known as a ‘proposal’), the Valuation Office Agency (VOA) must review your band. Although you don’t have to officially provide evidence about nearby properties, we’d strongly suggest you don’t skip that part.
You can challenge your Council Tax band here.
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