Council Tax Cost Cutting: reduce your band and grab any discounts Discussion Area

simonturner

My first posting and some help required please

I own a Furnished Holiday Let and purchased this in 2012. I have mistakenly paid council tax since that date as a second home and am in process of transferring over to business rates where with rateable value I should get a refund of council tax.

Issue is that the council have said that due to the revaluation exercise in April 2017, I can only receive refund from that date as everything before doesn't qualify??

Given I would receive 100% small bus rates reliefs this seems unfair and I don't just want to take their word for it. Any help appreciated as I would have saved 6 years at c£1200 pa if I registered the property correctly - that is my fault but I don't get why I can't go back and claim?

CIS

simonturner wrote: »

My first posting and some help required please

I own a Furnished Holiday Let and purchased this in 2012. I have mistakenly paid council tax since that date as a second home and am in process of transferring over to business rates where with rateable value I should get a refund of council tax.

Issue is that the council have said that due to the revaluation exercise in April 2017, I can only receive refund from that date as everything before doesn't qualify??

Given I would receive 100% small bus rates reliefs this seems unfair and I don't just want to take their word for it. Any help appreciated as I would have saved 6 years at c£1200 pa if I registered the property correctly - that is my fault but I don't get why I can't go back and claim?

It's an odd one and not one I've seen before in this particular circumstance - I deal regularly with the council tax side but this one for the business rates side is a new one on me as it does also have implications that will knock on to the council tax side. What date have the valuation office decided that the property will be removed from the council tax list and what date have they said it will be entered in to the ratings list ?

lincroft1710

simonturner wrote: »

I own a Furnished Holiday Let and purchased this in 2012. I have mistakenly paid council tax since that date as a second home and am in process of transferring over to business rates where with rateable value I should get a refund of council tax.

Issue is that the council have said that due to the revaluation exercise in April 2017, I can only receive refund from that date as everything before doesn't qualify??

Given I would receive 100% small bus rates reliefs this seems unfair and I don't just want to take their word for it. Any help appreciated as I would have saved 6 years at c£1200 pa if I registered the property correctly - that is my fault but I don't get why I can't go back and claim?

The 2017 Revaluation ieffectively locked the previous Non Domestic Rating List, so any entry in the current Rating List can only be backdated to the 1 April 2017. Unless it is exempt from Rating or Council Tax, a property must appear in either the Rating or Council Tax List. So as CIS suggests it will depend on whether the VOA delete the CT entry from 1 April 2017 so that the property is continuously in a List or from the date of your purchase.

But as the start date of the property being a holiday let is unclear, there is a possibility the VOA may make the effective date, the date they enter the property into the Rating List, and that would correspondingly be the date the CT entry is deleted.

My advice would be ask the VOA what happens in such circumstances and speak to someone who is well versed in Rating List law and procedure and also someone similarly versed in CT List law and procedure

Jellybeanio

Hi Lincroft,


Could you please help?


Other than the Disabled Band Reduction Scheme which I know is not applicable for the properties in question. What "circumstances affecting these two properties only" might the VOA be referring to as a reason/s for having a band reduction? The properties are identical (actually larger) than mine but in a reduced band.


Thank you.

lincroft1710

Jellybeanio wrote: »

Hi Lincroft,


Could you please help?


Other than the Disabled Band Reduction Scheme which I know is not applicable for the properties in question. What "circumstances affecting these two properties only" might the VOA be referring to as a reason/s for having a band reduction? The properties are identical (actually larger) than mine but in a reduced band.


Thank you.

Usually it would be an external factor which would reduce the value of the property. Examples would be next to or near a factory, filling station, school, bus stop etc. Or the properties may have subsidence problems. The best thing would be to ask the VOA for the precise reason.

If the properties are larger than yours they cannot be identical. Are there any other differences,e.g. semi versus detached, single versus double garage? These are factors which affect value and thus can affect bands.

Jellybeanio

Thank you Lincroft.


The VOA anticipated that exact question by telling me that due to taxpayer confidentiality they were unable to provide me with any further details of the circumstances. None of the reasons you state apply. Although, the subsidence I do not know about. Although, the sale price for one of them most certainly did not reflect subsidence.


Of course you are right ref identical! What I meant was that the properties are of the same type with the same number of bedrooms and parking facilities except that theirs are on larger plots.


These 'circumstances' have me baffled.

lincroft1710

Jellybeanio wrote: »

Thank you Lincroft.


The VOA anticipated that exact question by telling me that due to taxpayer confidentiality they were unable to provide me with any further details of the circumstances. None of the reasons you state apply. Although, the subsidence I do not know about. Although, the sale price for one of them most certainly did not reflect subsidence.


Of course you are right ref identical! What I meant was that the properties are of the same type with the same number of bedrooms and parking facilities except that theirs are on larger plots.


These 'circumstances' have me baffled.

"Taxpayer confidentiality" is rubbish! It is the house that is the subject of the reduction, not the circumstances of the taxpayer! If the reduction had been determined by the Valuation Tribunal, details would be in the public domain. Ask them again.

The plot size makes very little if any difference to a CT banding.

Jellybeanio

Thanks again Lincroft.


Ask them again? That's all I ever seem to do.


This little nugget of information was given to me in their response to a Tier 1 complaint. Over the past 16 months they have conducted what they consider to be 3 thorough reviews without offering any justification as to why so many comparable properties are in a lower band than me. In fact, they make no reference to the vast majority of them at all. Instead, just focussing on one in particular. First calling it an error (just as they claimed in 2008) and not once acknowledging that the property had actually been sold since 2008 having clearly not undergone a review. Now, the reason has changed to 'circumstances affecting these two properties only' for that particular property and the adjoining semi.


After the third review I asked if they were not prepared to conduct a thorough review which addresses all my evidence then would they please consider my reply a complaint. They clearly did just that! I just didn't know how many reviews it was going to take before I finally had answers but unfortunately the complaint response has now left me not only none the wiser but with this new question too!


I will most certainly ask the same questions again and ask about these 'circumstances.' Particularly, because they have quoted no data protection laws such as they did when claiming I had asked to see sales evidence. I did not ask to see any such evidence BTW I merely asked for some of the sales figures they were referring to within the locality without disclosing addresses.

lincroft1710

Jellybeanio wrote: »

I will most certainly ask the same questions again and ask about these 'circumstances.' Particularly, because they have quoted no data protection laws such as they did when claiming I had asked to see sales evidence. I did not ask to see any such evidence BTW I merely asked for some of the sales figures they were referring to within the locality without disclosing addresses.

Normally I do not advise council taxpayers to involve their MP as the VOA is very adept at answering MPs' letters and telling the MP that the band of their constituent's home has been thoroughly investigated etc, etc, so that the MP is happy everything that could be done has been done.

But in this case I think you should write to your MP and explain all that has happened so far and ask if he can get a sensible answer from them

Jellybeanio

Hi Lincroft,


Thanks again for the advice. I will go through the motions tier 2 etc. then no doubt ultimately have to do what you advise.