Council Tax reassessed on purchase

klaatu

The house we are buying is currently in Council Tax band A. It's been considerably upgraded and extended by the current owner, it probably ought to be band C or D now. The particulars contain the usual warning that the Council Tax might be reassessed at the time of purchase.

If we end up having to pay a higher rate, fair enough, but I wondered how likely this is to happen. Has anyone here had this happen to them?

Steve

robnye

not very likely, they do carry out reassessing across the board approx every 10 years......
i have the same problem, partly due to modernisation i have done since moving in....

adr0ck

if your neighbours query / complain why your paying less...then you will be reassessed...thats what happened to me

i don't like my neighbours!!!!!!!

adr0ck

robnye wrote:

not very likely, they do carry out reassessing across the board approx every 10 years......
i have the same problem, partly due to modernisation i have done since moving in....

if you carrried out the modernisation then the property cannot be reassessed until it changes hands.....ie if you extend your house then the council tax banding will not change until you sell

doesnt make sense but thats the government for you

mac123

adr0ck wrote:

if you carrried out the modernisation then the property cannot be reassessed until it changes hands.....ie if you extend your house then the council tax banding will not change until you sell

doesnt make sense but thats the government for you

THe government postponed the proposed revaluation of ALL residential properties in this country last year but not for long and rest assured, any improvements to the property made by you or the previous owner will be part of YOUR revaluation and hence a rise

adr0ck

mac123 wrote:

THe government postponed the proposed revaluation of ALL residential properties in this country last year but not for long and rest assured, any improvements to the property made by you or the previous owner will be part of YOUR revaluation and hence a rise

thats not true!!!!!!

my house was revalued i think in 2003/4 (along with all other houses in wales) my council tax band went up

last year my house was revalued for a second time....a second time going up....this time because my neighbours complained that i was on a lower band to them (even though i'm in a smaller house)

Debt_Free_Chick

It's true that the Govt has cancelled the revaluation - but this is the general revaluation of all the bands. I don't think that there has been a cancellation of all revaluations and reassessments of those properties that have had extensions and then been sold is still going on.

I've just had my Council Tax reassessed for an extension built by a previous owner. I am appealing, but don't expect to win.

I would not be confident that the CT would not be reassessed. I think you should expect it to be and do your budget on the basis that it will be.

Lil_Dee_2

The govt. did cancel the re-assessment of Council Tax, but not in Wales, where they implemented the new bandings in April 2005. As for having had improvements on your 'new' home Klaatu, I think you'll find the following interesting reading. It refers to a 'relevant transaction' having taken place - in this case, the sale of the house would be the 'relevant transaction' :

If you are a potential purchaser, or a leaseholder thinking of extending the lease on a property you occupy, you should be aware that, if a property has been improved since 1993, the council tax band will be reviewed after the transaction has taken place. If a higher band is warranted, the new band will be based on what the property would have been expected to sell for on 1 April 1991. This is because all properties are allocated a band based on the price it would have fetched had it been sold on the open market on 1 April 1991. The subsequent increase in council tax will be effective from the date of sale.

So, if you can prove that existing nearby properties that have remained untouched since April 1st 1991, are similar to yours, but in a lower banding, then you may well find that is enough to get the council to down-grade your new grade, if you see what I mean !!!

Check out the following site, it's helped myself and my neighbours (brand new houses, which the council have tried to put into too high a banding) over the past few months. We're doing quite well, and have managed to get the council to reduce the grading on several of us now. Remember - you don't have to accept the initial findings of the courncil. It is in your interest to check if they are over-charging you, in comparison to your neighbours.

http://www.voa.gov.uk/council_tax/index.htm

HTH. LD

klaatu

As the house is in Scotland I went to the Scottish equivalent of that website - http://www.saa.gov.uk/ and it appears that the house was actually reassessed in October last year, and is now in band D. Which is what we expected. Oh well.

mac123

adr0ck wrote:

thats not true!!!!!!

my house was revalued i think in 2003/4 (along with all other houses in wales) my council tax band went up

last year my house was revalued for a second time....a second time going up....this time because my neighbours complained that i was on a lower band to them (even though i'm in a smaller house)

That is true! Wales was revalued and England has been postpones ... as I live in England, I think you'll find my post was correct (seeing as I have worked in Council Tax for 4 years, I'm correct!!

suki1964

Very likely Im afraid

We completed in Feburary and the new owners had the letter from the council informing them of their new tax banding increase waiting on them.

If you look at the tax banding website (cant remember the URL) at the property you are buying, if theirs an asterix beside it then they know of the extensions and will be reassesing when the property is sold