Council tax "Improvement Indicator"

arobinson_2

We have exchanged and are due to complete on a property in England.

Before we exchanged I was advised by our solicitor that the property has an improvement indicator on it, and is currently band D and that after the sale the banding may change. After doing some research, I've estimated it will be valued into band E (based on back dating sale price to 1991 values)

I'm aware our council tax may (will) go up and have budgeted accordingly so that isn't the issue, just looking to get an idea of the process and how long it's likely to take. Do we need to do anything or is it all done automatically by the council upon the sale completing?

AdrianC

You don't need to do anything.

When the council receive the change of occupier information, the VOA are notified automatically. Within a month or so, they'll do their do, and you'll receive notification of the new band. It might be the same, it might be higher. If you think it's wrong, you can appeal it.

Happened to us when we moved last summer. It was all fairly smooth.

arobinson_2

Great thanks.

As I said, I've budgeted for worst case scenario. I assume it will be backdated as of when we became liable for council tax?

AdrianC

arobinson wrote: »

I assume it will be backdated as of when we became liable for council tax?

Yep, it will be.

mavisangelica

Does the indicator mean that it 'will' go up or that it 'may' go up? We are in the same situation as the OP (again, I had looked it up so we have budgeted for it so not a problem).

What is the process? Do the VOA look at the work that has been done and then make judgement?

Will we get a bill for the original banding and start to pay that, then get a revised bill after a decision has been made?

AdrianC

mavisangelica wrote: »

Does the indicator mean that it 'will' go up or that it 'may' go up?

It means that VOA will investigate whether the property is still in the right band. No more, no less. It might go up. It might stay still. It might even go down. It all depends on the particular case.

What is the process? Do the VOA look at the work that has been done and then make judgement?

VOA look at the property and work out the nominal 1991 value of it, based on the same criteria that they'd use if it was a new build or any other place that they were assigning a CT band to, including comparisons with other places in the area. The old band or size of the place isn't taken into account.

In our case, when we bought the place last year, the indicator was due to a small kitchen/bedroom extension having been replaced with a larger one, together with a lot of other restoration work. My initial reaction was that the new band "felt" high, compared to other places in the village. VOA were happy to talk me through their logic and comparisons - some of which I agreed with, some I didn't - but it did explain their working. What really persuaded me the new one was right, though, was the discovery that the place - with old extension and needing work - had actually been sold in 1991 for a few quid below the banding breakpoint!

I can't remember quite how the bill worked - it was a much quicker process than I was expecting, tbh.

cancunia

I just noticed that the VOA website has an improvement indicator on my property when I checked the council tax band. Is there a way to discretely find out what the indicator is for? I'm not sure myself what it is for and it won't affect me, but I'm curious none the less!

Thanks

booksurr

cancunia wrote: »

I just noticed that the VOA website has an improvement indicator on my property when I checked the council tax band. Is there a way to discretely find out what the indicator is for? I'm not sure myself what it is for and it won't affect me, but I'm curious none the less!

Thanks

it means your local council has, at some point in the past, received a planning application for an "improvement" to your property, typically that means an extension...

there is no way to "discretely" find out, if you don't know if your property has been extended in the past then I take it you are not the owner who had the work done. In which case you have nothing to work about as a rebanding will only apply to a new purchaser of the property so it would have kicked in when you bought. The fact your CT hasn't changed means you can ignore it. (until there is a global revaluation done of every property in the country as a tax raising measure, so far thankfully no political party has the nerve to do that - other than the Welsh!)

orionmoo

Same for the property we're about to buy because in 2004 they converted the garage to an extra reception room/bedroom.

I'd hardly call it an improvement as I'd actually value the storage space of a garage more I think than an empty room that'll just end up with the washing and ironing in!

cancunia

Shame about the discreet enquiry route, but thanks for replying.

booksurr

cancunia wrote: »

Shame about the discreet enquiry route, but thanks for replying.

well you can search your council website planning applications. As far as I know many councils now have at least a good few years of planning decisions available online so you cans each on your address and see what comes up

however I remain confused why you want to know, if you are the current owner and cannot see what has changed about your property just by looking then ask the neighbours if they remember what work has been done to it

but at the end of the day you appear to be living in a property with an indicator so its impact on you will be none becuase it can only affect the CT band when the property is sold (or as mentioned before if there is a wholesale revaluation in the future, at which point we will all be appealing against any increases in banding )