Council Tax rebranding Wales

catryn

I bought a house in Wales in July 2013. It was sold for £250000 in 2005. In 2007 there was a loft conversion with bedrooms and a bathroom. We bought it for 200000.
It was council tax band E and we have had a letter to say that the improvements were after 2005 we have been revalued to band F.

As the property value has decreased despite the improvements is it worth trying to appeal this increase?

Thank you

lincroft1710

The year of valuation for CT purposes in Wales is 2003, so what the VOA would look at is, had the property existed in 2003 in its July 2013 physical state, how much would it have sold for.

The question to be asked then is would the loft conversion have added sufficient value to achieve the lowest amount of a Band F, which would be £162,001.

catryn

In July 2002 it was sold for £125,000

lincroft1710

Certainly in England prices rose between 2002 and 2003, and from your sales info, prices doubled between 2002 and 2005 in Wales so together with the added value of the loft conversion, the theoretical 2003 sale price could have exceeded £162K.

However I don't see you have anything to lose by appealing the rebanding and even if the band remains at F, you will have the opportunity to see the VOA's evidence which supports that band.

catryn

Thanks for the reply, it's certainly worth the cost of a stamp! Unfortunately I can't compare to any of the local houses because they are all different sizes!
It was sold for £125,000 in 2002.

catryn

Hi lincroft1710, I am preparing my appeal, do you think that I should add anything to this? Thank you for all your help.

'I understand that date for valuation was 1 April 2003. On that date the property was known as #### and on 5 July 2002 it was sold for £125,000. The property was next sold on 30 June 2005 for £249,950. The lowest amount for band F at the time of valuation was £162,001. Whilst some improvements were made to this property I contest that this would not have added sufficient value to the property to result in the revaluation. Incidentally the improvements to the property have resulted in a decrease in value of over £50,000 in 8 years.

I therefore contest the statement that ‘the improvements that were made to it in the past now need to be incorporated into the assessment of its value’. These improvements would not have added £37,000 to the value of the property and the property should be returned to the original tax band E.'