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

Canary

Thank you, I have asked the local authority who have said they would not discuss the neighbours property and would not consider changing mine.

I will approach VOA and see what response I get.

Thank you.

Canary

CIS wrote: »

Only in a very simplistic view of how the calculation is made.


It looks at the open market value of the property - this is to get around any attempt at an under-priced sales or sales within a closed market. The exact terminology in legislation is "the [price the] dwelling might reasonably have been expected to realise if it had been sold in the open market by a willing vendor on 1st April 1991 ".

Essentially the VOA will value the property under their legislation (which has a list of statutory criteria to try and put all property in to an equal position) - this assessment, in an open market, should then give a value at or very close to what a property would typically sell for if you look at sale prices but it doesn't have to be the same.


For example - I sell a house with a leasehold interest for £150,000 but with a freehold it would be worth £200,000. The VOA will consider the property as if it was a freehold so their calculated open market value would be closer to £200,000 - regardless of what I actually sold the property for.

so on that basis, two identical properties, built at the same time, with no improvements since shouldn't be classified as one being band A and the other being band E.

CIS

Canary wrote: »

so on that basis, two identical properties, built at the same time, with no improvements since shouldn't be classified as one being band A and the other being band E.

Not if the properties were identical in circumstances at the point of valuation - if there's an error then the A band would be the incorrect one.

LStroud

Hi

We bought our property in March 2019. Yesterday had a letter from VOA stating
"A previous owner made alterations to your home, we must include the additional value of those alterations in the band following your purchase. If I need further information, or need to visit the property, I will contact you"
The alterations were made in 2007
TODAY had a letter from the council stating the house is now in a different band, E, and have backdated it to date of purchase and asking for £462 by March
Can they do this? I don't mind the alteration but surely it's not our fault that Council didn't put us in the correct band on purchase? I can't afford to pay that all in one go

lincroft1710

LStroud wrote: »

Hi

We bought our property in March 2019. Yesterday had a letter from VOA stating
"A previous owner made alterations to your home, we must include the additional value of those alterations in the band following your purchase. If I need further information, or need to visit the property, I will contact you"
The alterations were made in 2007
TODAY had a letter from the council stating the house is now in a different band, E, and have backdated it to date of purchase and asking for £462 by March
Can they do this? I don't mind the alteration but surely it's not our fault that Council didn't put us in the correct band on purchase? I can't afford to pay that all in one go

If you live in Wales it can be backdated to the date you first occupied (or had the right to occupy) the property, in England it is backdated to the date the band was actually changed.

CIS

Can they do this? I don't mind the alteration but surely it's not our fault that Council didn't put us in the correct band on purchase? I can't afford to pay that all in one go

The council do not set the band, that is the function of the VOA.

There is no legal requirement to report any changes that affect a banding so, when any changes are discovered by the VOA, the council are able to backdate to the relevant date the VOA set. This prevents the council from losing out due to someone not declaring, or hiding, something which would alter the banding.

In respect of the billing then only 1 instalment has to be offered by the council in this situation for any backdated council tax (technically, in England, you can get 2 instalments for the current years additional charge, if you ask and it is processed in time) .

HouseMouse

Can I ask if it's the size of the plot or the size of the property that affects its banding?


I live in one of 4 identical bungalows all rated D. The other properties in the road were all built as 3 bed detached (mostly extended now) and these were originally in Band C. (Those that have been sold since extended are now also in band D)
Given that the bungalows are 2 bed and so smaller overall than the houses (though admittedly with bigger footprints) surely they should also have been in Band C?


I can't get accurate historical valuations for various reasons but these days the 3 bed houses are going for about 25-30% more than the bungalows. Would this relative valuation have also applied in 1991?

lincroft1710

HouseMouse wrote: »

Can I ask if it's the size of the plot or the size of the property that affects its banding?


I live in one of 4 identical bungalows all rated D. The other properties in the road were all built as 3 bed detached (mostly extended now) and these were originally in Band C. (Those that have been sold since extended are now also in band D)
Given that the bungalows are 2 bed and so smaller overall than the houses (though admittedly with bigger footprints) surely they should also have been in Band C?


I can't get accurate historical valuations for various reasons but these days the 3 bed houses are going for about 25-30% more than the bungalows. Would this relative valuation have also applied in 1991?

It is the 1991 value that is the basis of banding, so the property size which is important. In most cases the VOA are unaware of plot sizes. Bungalows tended to sell for much more than equivalent sized houses. Also because of band widths a dwelling worth £70,000 in 1991 and one worth £85,000 in 1991 would both be in Band D.

Darren_Thomas

I pay my council tax over the 10 months and I do enjoy the free two months that I do not have to pay. I did not realise that I was doing this until I phoned the council and informed me this. It was a lovely surprise but I would not have known I was doing it this way if I had not of contacted them

lincroft1710

Darren_Thomas wrote: »

I pay my council tax over the 10 months and I do enjoy the free two months that I do not have to pay. I did not realise that I was doing this until I phoned the council and informed me this. It was a lovely surprise but I would not have known I was doing it this way if I had not of contacted them

You do realise that by paying over 10 months you can actually lose rather than gain. For example let us say your CT bill is £1200 and you have this money so invest it in an account paying 3% per annum, but adding one twelfth of 3% interest on the balance remaining at the end of every calendar month.

So paying over 10 months at the end of the 1st month you would have interest payable on £1080, the 3rd month £840 (plus accrued interest), the 6th month £480 (plus accrued interest). Paying over 12 months those figures would be £1100, £900, £600 respectively (plus accrued interest).