Council tax rebanding

Council tax check & challenge your band
How 400,000 may be able to lower their bands and gain £1,000s

Hundreds of thousands of homes throughout England and Scotland are believed to be placed in incorrect council tax bands. Ensuring your property is in the correct band is crucial, and our reliable system can assist you in this process. Many individuals have been overpaying for years, even decades, and the problem is exacerbated by the yearly increases in council tax rates, making refunds worth £1,000s quite common.

100,000s are in the wrong band: how council tax was originally calculated

Many homes have been assigned incorrect council tax bands since 1991. Here’s the story:

Back in 1991, in preparation for the new council tax system, the Government needed to categorize every property into a valuation band. The task was enormous and time was running out, so they enlisted the help of estate agents and others.

Despite the assistance from estate agents, there wasn’t enough time to gather detailed information. Instead, they quickly assigned bands by driving down streets and estimating the value of properties with just a quick look. These hurried assessments were termed “second-gear valuations” because they rarely stopped their cars, let alone got out.

Years went by without any re-evaluation of the properties in England and Scotland, although the Welsh Government did reassess all homes there. Consequently, the inaccurate valuations still determine the council tax bands, leading to situations where you might be paying more than your neighbor despite having the same size property.

It may sound like a fairytale, but every bit of this story is true.

Council tax reclaiming: step-by-step

Follow the steps below to check if you’re eligible for a payout:

Step 1: The neighbours check

The most crucial action is to determine if your property’s band is higher compared to similar or identical properties nearby. Although you could directly inquire with your neighbors, it’s not necessary since this information is publicly accessible.

You can find the band for any property in England and Scotland on the following websites…

First, examine your band and compare it with those of your neighbors. Ensure that the properties are similar in size and value. Unfortunately, due to the extensive database, some properties might be excluded. If you find this to be the case, either talk to your neighbors directly or reach out to the council to inquire about the discrepancy.

If neighbours in similar properties are in a lower band than you, then you may have a claim (though it may just mean that they’re all in the wrong band). This happened to a street in Hull, when one unidentified resident appealed as she was in band B, and all her neighbours in similar properties were in band A.

Instead of her receiving a council tax reduction, her neighbors are now confronted with higher bills due to being rebanded. Therefore, it is crucial to perform the Valuation Check outlined below.

Step 2: The valuation check

Another essential step is to determine the value of your home in 1991, as this is the basis for the council tax bands.

Although this information CANNOT be used as evidence in an appeal, it allows you to compare property prices on your street and ensures you’re on the right path if you choose to contest your band.

To carry out the valuation, adhere to the steps outlined below:

A. Value your property

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 websites
  To find a price quickly, use a website which offers free historic sales price information. These include Nethouseprices, Zoopla and Rightmove.Enter your street name and it’ll tell you the prices of all properties sold there since 2000. For more on valuation tools, read the full Free house price valuations guide.
• Note down the price and date
  Find the most recent sale price of a similar property to yours in your street. Now note down both the price and the date of sale.

B. Find out what it was worth in 1991

Once you have that data, you can use it to estimate your property’s value in 1991 and determine its tax band. We’ve created a calculator to assist you, utilizing house price data from Nationwide.

Note. If you’re entering your property price in the current year, you’ll need to select the quarter previous to the current one to get your 1991 valuation.

This is a preliminary but essential safety measure. You might be classified in a higher band compared to your neighbors due to an error on their part, not yours. If you appeal and maintain your band while theirs is corrected and raised, it might cause friction.

This extra verification reduces the likelihood of such scenarios. If this assessment suggests your band is too high, it’s advisable to evaluate the extent of the discrepancy as part of your decision-making process for challenging your band.

How to work it out manually

To do this, go to the Nationwide House Price Calculator. This is actually designed for people to put in their property price when they bought it, and work out what it’s worth now. Yet it is possible to use it in reverse to get a rough value back in 1991. How to use the calculator:

• Scroll down the page to the calculator.
• In ‘Property value’, note the sales price from earlier.
• In ‘Valuation year 1’, enter the date of sale from earlier. (Make sure you enter which quarter of the year it was.)
• In ‘Valuation year 2’, enter 1991, and Q2.
• Select your region from the dropdown list.
• Click ‘calculate the results’.

The results then appear, for example:

A property in north west England valued at £170,000 in Q2 of 2010 would have been worth approx £67,000 in Q2 of 1991.

C. Check council tax bands for the property’s 1991 price

Now you’ve worked out roughly what your property was worth in 1991, you can compare this to the table below to see what band you should have been put in, based on that home value.

Council tax bands at 1991 property values

Step 3: Are you in the wrong band?

At this juncture, we must issue a significant caution.

Testing your band should not be done on a whim without proper verification, for one straightforward reason:

You can’t just ask for your band to be lowered – only for a ‘reassessment’, which means it could be moved up or down.

Your neighbors’ band could potentially increase, although this is uncommon.

That’s why it’s essential to perform BOTH checks and to be particularly cautious if you’ve added an extension or made improvements that enhance your property’s value.

When considering eligibility for a reduction, the most critical assessment is the Neighbors Check, though the secondary Valuation Check is also beneficial for determining if your band is too high or if your neighbors’ band is too low.

Refer to the table below to evaluate the strength of your case and determine if it’s worthwhile to challenge.

How strong is your case for revaluation?

Step 4: Challenge!

If you believe that your property band is unjust, it’s important to contest it.

Keep in mind that the formal challenge checklist serves primarily as a precautionary measure before initiating your appeal. Its usefulness in your case is somewhat limited. However, gathering real sales prices from around 1991 can provide more compelling evidence for your challenge.

How to challenge if you’re in England

If you’re in England, the Gov.uk website helps explain how to go about challenging your council tax band. You can either contact the Valuation Office Agency (VOA) directly, at which point 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 check your band by entering your postcode and selecting your address from a list. Then you can 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.

How to challenge if you’re in Scotland

In Scotland, the Scottish Assessors’ Association (SAA) deals with council tax bands. Enter your postcode in the Council Tax Bands search box on the SAA homepage. Select your property from the list. If you want to challenge the banding, click on “Make a proposal”. You can then fill in an online form which will be sent to your local assessor, who will contact you.

Possible outcomes

A: You get told you can’t challenge – but don’t be fobbed off by this

From a technical standpoint, you can only officially dispute your council tax band—also known as proposing a change to your council tax band—if you have occupied the property for six months or less.

However, we believe this is an unfair limitation. Discussed the matter with former Government ministers, who have informed him that the VOA has a legal obligation to maintain the “integrity” of the council tax banding system.

So, if you are told that you can’t challenge your band because you’ve lived in the property for over six months, don’t lose hope. You still have the option to contact the VOA with supporting evidence for why you believe your band should be adjusted. The VOA will then decide whether your case merits a review.

Requesting a review differs from making a formal challenge. According to the VOA, it is more efficient and faster to call 03000 501 501 if you’re in England. This allows you to speak directly with an expert who can assist you with your inquiries and clarify the process.

However, you can also 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 to check, and correct it if it is in the wrong band.” You will need to provide evidence along with your letter (for more, see the Gov.uk guidance on how to challenge your council tax band).

Send your letter to: Valuation Office Agency, Customer Service Centre, Wycliffe House, Green Lane, Durham, DH1 3UW.

This approach has proven effective and continues to be so, although results cannot be guaranteed. It might require persistence on your part, and you might only secure a change in your council tax band moving forward, with no retroactive refunds. For more insights and experiences from others who have pursued this route, check out the council tax successes forum thread.

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, not disagreements with its decision).

Live in Scotland?

For those in Scotland, proposals to change a council tax band are dealt with by your local assessor.

Similar to in England, technically you can only formally challenge a band if you’ve lived in your property for six months or less, though there are scenarios where you can challenge even if you’ve lived there for longer – see details of these on the Scottish Assessors’ Association website.

If the assessor decides that you are unable to contest the decision for any reason, you will be formally notified. You have the right to appeal this determination, but the appeal must be submitted within four weeks of receiving the notice. Should the assessor maintain their initial ruling, your appeal will be forwarded for review by the Valuation Appeal Committee.

B: Your challenge gets rejected

If you challenged your banding in England and were rejected – and you think it’s wrong – you’ve got three months to appeal to the Valuation Tribunal.

This option is available only if you have resided in the property for six months or less, or if other qualifying conditions apply to your situation.

If your stay exceeds six months and the VOA has either determined that there is insufficient evidence to reassess your case or has reviewed it without altering your band, you cannot appeal further, and the process concludes. Nonetheless, if you uncover new evidence that has not yet been reviewed, you have the opportunity to try again.

It’s important to note that the check and challenge system does not guarantee a change in your banding. While passing both checks strongly suggests that you should consider challenging your banding, it does not ensure that a change will be made.

Live in Scotland?

In Scotland, if you have the authority to contest your property banding and your local assessor cannot resolve the issue within six months, the matter will be escalated to the Valuation Appeal Committee. You will receive notification regarding the date and time of the hearing, along with additional information about the process.

Top tips if appealing or asking for a review

Many peoples have achieved notable victories in council band challenges by initially having their claims rejected but later succeeding with additional, compelling evidence. Check out the dropdown below for their top recommendations:

‘My challenge was rejected – is it worth appealing or asking for a further review?’

We frequently receive messages from individuals who ask, “I followed all the necessary procedures, the investigation was conducted, and my request was denied – what should I do next?” For many, once all evidence has been thoroughly reviewed and exhausted, it may be time to consider moving on.

Nonetheless, if you have a strong justification to advance your case and possess new or recently discovered evidence to support it, there might still be options available. You could consider appealing to the Valuation Tribunal if you’ve been in your property for less than six months. Alternatively, if you’ve occupied the property for more than six months, you might request a further review from the Valuation Office Agency. For additional guidance on appeals or reviews, please refer to the tips provided above.

It’s important to note that the ‘valuation check’ calculator in this guide cannot be used to determine house values from 1991. However, if you can obtain actual sale prices from that period, they can be used as evidence.

The Gov.uk website provides further details if you’re appealing via the Valuation Tribunal. If the Valuation decides against you, it’s almost certainly time to give up. You do have a final right of appeal through the High Court if you really want it (though you’d need to prove the Valuation Tribunal made an error in law, not just that you disagree with what it said).

C: You succeed!

Be prepared for your band to be reduced, and ensure you claim a backdated rebate starting from either the date you moved into the property or from 1993, whichever applies. Additionally, it might be worth reaching out to former occupants, as they could also be eligible for a refund.

Share your experience with us. The more details we gather, the more effectively we can navigate this process.

How much can you expect to get if you successfully challenge your band?

Successfully lowering your council tax band can usually save you between £100 and £400 annually. Additionally, you should anticipate receiving a refund for the excess amounts you’ve paid, retroactive to your move-in date, potentially as far back as 1993 when the tax began. These backdated refunds can amount to £1,000s.

Council tax rebanding FAQs

Here are a few commonly asked questions. If yours isn’t answered below, take a look at the forum discussion.

Q – I’ve been rebanded because my neighbour challenged their band. Can I appeal?

A – We’ve not heard of this happening often, though there was big news back in 2015 when it happened to a street in Hull.

One neighbour was in band B, with all other similar houses in the street in band A. The person in band B challenged the banding, and instead of her council tax being lowered, all her neighbours’ council tax bands were raised, putting them all in band B.

If this happens to you, and you believe it’s wrong, you need to start your own challenge under the normal system. However, since the neighbours check won’t work if you’ve all been revalued, you’ll need to rely on the valuation.

Again, you can’t just use the calculator above to estimate your home’s 1991 value and present that as evidence. But if you can get evidence of sale prices of your home (or similar homes in your street) from 1991, this would be strong evidence with which to make your case.

If you believe you have grounds to contest your banding, follow these steps to dispute it. Be ready to escalate the issue to the Valuation Tribunal, since the Valuation Office Agency has already determined that your property should be reclassified to a higher band.

Q – Do payouts mean everyone else in the area will pay more?

A – Tony Travers, a local government expert from the London School of Economics, notes that it is the central government’s responsibility to cover the expenses associated with significant rebanding. Although the specifics of this arrangement are intricate, it effectively distributes the costs. Interestingly, some individual councils might benefit from this system, as they receive larger subsidies when a greater number of residents fall into lower tax bands.

To clarify, the main objective here is to recover any overpaid council tax from previous years. As more properties undergo revaluation, it will increase the pressure on the Government to implement a nationwide revaluation, ensuring that everyone is contributing a fair share.

Q – Why doesn’t this apply to Wales & Northern Ireland?

A – Northern Ireland operates under a system distinct from council tax, rendering this information irrelevant for that region. In Wales, although a council tax system is in place, a comprehensive revaluation was conducted in 2003, minimizing the likelihood of errors and their persistence (though you can still contest it if you believe it is inaccurate). Consequently, this guide primarily addresses England and Scotland.

Q – My property usage has changed. Can I still apply?

A – The property bandings were last evaluated on 1 April 1991 and have not been updated since then (with the exception of Wales). Consequently, these bandings are often outdated for many individuals. For instance, there may have been a nightclub constructed next to your residence, or your property could have been converted into apartments. Alternatively, you might be paying too little if your home has seen significant improvements, or the property values in your area might have decreased relative to other locations.

Historically, this has been the primary reason for requesting a rebanding of your property. Prior to the introduction of the check and challenge system, most appeals were based on such circumstances. Therefore, you can still dispute your banding if you find yourself in a similar situation.

Q – A company has said it can get my council tax back for a fee. Is this true?

A – Some companies may assert they have special influence or expertise, but in reality, their power often matches your own. Consider whether you might bypass these intermediaries and handle the task on your own.

For most people who are literate, numerate, and have internet access, reclaiming council tax is a relatively simple task. It requires some time and effort, but the resources provided should equip you to manage it independently.

However, if you prefer assistance, you can turn to a lawyer or a ‘claims handler’—as they are commonly known. Keep in mind, though, that their services can be pricey and they may take up to a third of the reclaimed amount. Generally, there’s no need to engage a company; this site maintains that it’s both easier and more profitable to use the provided information to handle the process yourself.

Nevertheless, there are situations where professional help might be appropriate, especially for those with severe financial anxiety, limited internet skills, or mental health concerns. If you find yourself in this category, it’s crucial to thoroughly vet any lawyer or claims handler you consider using.

Never pay anything upfront!

There are some companies that will offer to carry out your claim for an upfront fee, but if the company is not open and upfront about its fees, which as a rule of thumb shouldn’t be much more than 25% of what you win, then don’t go there. Also feel free to ask for references from other satisfied customers, which it should be happy to do if kosher.

All claims firms must be regulated for claims management activities and will have a reference to check (such as CRM1234) on the Ministry of Justice database. Avoid anyone not on this list.

Q – What does council tax get spent on?

A – Council tax funds various essential services like policing, education, and waste management. It was introduced in 1993 to replace the controversial poll tax, though Northern Ireland continues to use the older rates system. The fairness of council tax remains a subject of ongoing discussion.

Q – What type of properties have to pay council tax?

A – Whether it’s a house, apartment, mobile home, or houseboat, council tax applies to all residential properties. However, it’s important to note that not all households are charged the same amount.

Q – Can I do it if I rent / am a tenant?

A – Council tax is applicable to anyone residing at a property, whether you’re the owner or a tenant. Therefore, if you’re renting, it’s definitely a good idea to review the system. Before formally disputing your tax band, it’s courteous to first have a conversation with your landlord.

Q – Are ‘second-gear valuations’ for real?

A – In 1991, the valuation process was often expedited by outsourcing it to various organizations, such as estate agents. These agents were provided with a list detailing property sizes and instructed to evaluate them from an external viewpoint. Within the industry, this method became known as ‘second-gear valuations,’ because agents typically conducted their assessments while driving past properties in second gear, assigning value bands as they went.

One estate agent shared: “We were pressed for time, needing to evaluate 400 homes daily from a list. In rural areas, it was often impossible to see the properties, so we had to rely on rough estimates. The system might have worked if rebanding occurred every five years.”

However, rebanding did not take place, which explains why so many valuations are now inaccurate.

Q – What should I do if I think I’m in too low a band?

A – You are under no compulsion to take any action or inform anyone. Recent data reveals that although 10,120 properties were reassigned to a lower band, only 30 were elevated to a higher band. This indicates that most individuals tend not to report if they believe their property is undervalued.

Deciding whether to report and request an increase in your band is a personal choice guided by your own ethical standards. Even if you choose to do so, there is no assurance that your property will be reclassified to a higher band.

Are you eligible for a council tax discount?

The full council tax rate is the default setting, but many people qualify for a discount or reduction.

Discounts and reductions are worth at least 25% off your total bill, though there are also many people due nearer to off 50% – if not the whole bill wiped entirely. Head over to our Council tax discounts guide which has full information on who qualifies and how to apply.

In brief though, discounts and reductions can be awarded to people including (but not limited to):

• Students
• People who live alone (or only with under-18s)
• People living with a severe mental impairment (SMI)
• Those on a low income / benefits / universal credit
• Those on pension credit

Discounts can also be awarded to certain properties too. See our Council tax discounts guide.