Council tax band too low

Rhino666

Not the normal problem, in fact the total opposite.

40 year old substantial property, original spec, worth around £550K today with band 'B' council tax. I would expect it to be an 'E' at the very least.

What problems could a purchaser be faced with if they inherit this tax banding ?

property.advert

None, only fools ask to have their taxes raised.

Mankysteve

Next time the council does a review your rates will go up. Find out what band the house should be in and make sure you afford that rate but don't tell the council.

tealady

Rhino666 wrote: »

Not the normal problem, in fact the total opposite.

40 year old substantial property, original spec, worth around £550K today with band 'B' council tax. I would expect it to be an 'E' at the very least.

What problems could a purchaser be faced with if they inherit this tax banding ?

Jealous neighbours?

Morglin

The banding could have been reduced because someone in the home fits the disability criteria for reduction, and this will be changed when the house is sold:


http://www.direct.gov.uk/en/DisabledPeople/FinancialSupport/Taxreliefandreductions/DG_10026451

Lin

lincroft1710

Morglin wrote: »

The banding could have been reduced because someone in the home fits the disability criteria for reduction, and this will be changed when the house is sold:


http://www.direct.gov.uk/en/DisabledPeople/FinancialSupport/Taxreliefandreductions/DG_10026451

Lin

Cases where bands are reduced on account of facilities for disabled persons are rare and it would usually be a single band reduction. If a disabled person is being charged at a band lower than the actual band, then the actual band isn't reduced, just the payment.

It sounds as if one of two things has happened. Either the current owner has added a very large extension (band cannot be increased until house is sold) or the band was completely wrong in the first place. Whichever is the case expect a visit from my former colleagues at your local friendly VOA and the band considerably increased.

poppysarah

VOA by postcode to make sure it's not likely to have an update (if they extended etc)

stokesley

lincroft1710 wrote: »

or the band was completely wrong in the first place.

That's what happened with our ex-property. Banded as a 'C', should have been an 'E'. Now that we've moved it has come as something of a shock to be actually paying Band E.

Greatgimp

property.advert wrote: »

None, only fools ask to have their taxes raised.

I did, just before I put my property on the market. Some snobby people would rather pay an 'E' than a 'D'. It worked! I increased the asking price and sold it. Who's the fool now?

Rhino666

Thanks for the replies

I can tell you that the current owners built the property and no extension has been added. They are not disabled and in my opinion the banding was incorrect from the start (1993 ?). Possibly there was a much smaller property on the site at one time, demolished to make way for this property.

If the property were sold, would that automatically initiate a review of the council tax banding ?

If the new owner continued to pay council tax at the current rate, would any future review allow the council to backdate an amended rate back to the purchase date ?

The new owner would obviously have no wish to stick their head above the parapet but presumably any future need to obtain planning consent/permission would automatically initiate a review ?

00ec25

Rhino666 wrote: »

If the property were sold, would that automatically initiate a review of the council tax banding ?

search for the property here on the VOA site - if it has a flag against it then yes a review would be automatic, otherwise no it would not be reviewed at point of sale