Council Tax Query

Mark-W_2

Hi,

I have a question relating to my fathers council tax banding.
They have a recently recieved a letter from the local VOA office stating that there are questions over their current banding, which is band C and the local officer will be coming to do an external valuation only later this week.
I suspect that they wish to put them up a band or two as its a 4 bed detached in a nice area.

However my parents bought the house in april 1991 for £62,000 so well within the C banding, although it was originally for sale at £87,000.
As my father can prove that he paid £62k therefore it was only worth £62k i wouldnt have thought the VOA had a leg to stand on.
Yet my parents are convinced they will have to pay 15 years of back dated payments.

Does anyone know where they stand?

lincroft1710

Firstly, increase CANNOT be backdated. £62K for a 4 bed det in Apr 91 does seem low - have they extended it, or was it a repossession and what year was it for sale at £87K?

Mark-W_2

thanks for the reply.

The house was a new build in1991 and my parents are the only people ever to own it, so it not a reposession.
The property was originally for sale in late 1990 for £87k and has never been extended.
The house is located in north lincolnshire where prices are still relatively low, so that may explain the low 1991 price.

lincroft1710

28% drop in 6 mnths does seem a lot, at that time where I now live it was about 10% in a year. In Mar 91 I bought a 4 bed det for £65K in Northants - newbuild, last one on estate, which wouldn't sell, perhaps similar circumstances to your parents. Price drop there about 15% in a year.

VOA can (and does) decide that certain sales are outside the norm for a particular house type in a particular location, mainly where a sale is much lower (or higher) than the average. So their original thoughts that your parents' purchase price was the going rate for the time may have changed. I would suggest that your parents ask VOA why they think band could be wrong. If band is increased, your parents will have right of appeal and for the matter to be determined by Valuation Tribunal, which is independent of VOA.

Mark-W_2

thanks.

To be honest i think the house was overvalued at £87k, last year i appealed against my tax banding but lost however during my research i proved that my house in the neighbouring village where prices are roughly 10% higher was only worth £65k.
I lost on the basis that there was one other comparable property on the estate which was also a band D and they had never appealed.

I think your right the house was one of the last properties on the estate to sell the builder went bust shortly after my parents bought the property.