Council tax "Improvement Indicator"

ckspark

Hi
Does anyone know where to find the correct definition and terms of application for an Improvement indicator? I have searched everywhere and read the Government advice manual for VOA to no success. I mainly wish to know under what circumstances they are applied and if they have any time limit.
Thank you.

lincroft1710

ckspark wrote: »

Hi
Does anyone know where to find the correct definition and terms of application for an Improvement indicator? I have searched everywhere and read the Government advice manual for VOA to no success. I mainly wish to know under what circumstances they are applied and if they have any time limit.
Thank you.

There is no "correct definition". All an Imp Ind is, is a notification that a dwelling has had alterations carried out since the CT band was applied and following its next sale, the band may need to be revised.

There is no time limit

ckspark

So if a property has an Improvement indicator and is then sold, what factors or procedures are taken into account to decide if it will be rebanded or not.

If a potential purchaser is looking at a property that has an improvement indicator against it, how can they find out if that property will be rebanded or not before committing to the purchase? Obviously the outcome will affect the decision to purchase or not, or the amount a purchaser may be willing to offer. Vice versa how can a home owner assure a potential buyer that the property will or will not be rebanded?

jimbog

When I bought a house which had an indicator on it - the chap came out and assessed how many square metres of 'liveable' space it had been extended (not 100% sure but I don't think it includes hallways etc.). I do rememeber that in the loft it only included floor space which had a height over 1.5m to the ceiling.
It also depends which drawing of the original 'rateable' dimensions he had on his record (which was wrong in my case anyway - something had been demolished in the meantime).
Obviously if you were on the lower end of the band you were on then an increase may mean that you are still within the same band

Look at the council website and see what an increase of one band would cost you extra per year - and negotiate accordingly

Red-Squirrel_2

Can a property be re-assessed/rebanded after a sale if there's no improvement indicator? Is there any other trigger?

I've just had a look for a property I might be interested in, and its a B with no indicator, but every other property in the postcode including the identical other half of the semi is a C!

lincroft1710

Red-Squirrel wrote: »

Can a property be re-assessed/rebanded after a sale if there's no improvement indicator? Is there any other trigger?

If the VOA (Assessor in Scotland) realise or it is brought to their attention that a band is incorrect, then they can increase (or reduce) that band at any time

lincroft1710

jimbog wrote: »

Look at the council website and see what an increase of one band would cost you extra per year - and negotiate accordingly

Why would a homeowner reduce the price because there is a chance the Council Tax may increase for the new owner? It may only be £300 a year, but for how many years. In any case the new band would be the band expected for a house of that type and size.

lincroft1710

ckspark wrote: »

So if a property has an Improvement indicator and is then sold, what factors or procedures are taken into account to decide if it will be rebanded or not.

If a potential purchaser is looking at a property that has an improvement indicator against it, how can they find out if that property will be rebanded or not before committing to the purchase? Obviously the outcome will affect the decision to purchase or not, or the amount a purchaser may be willing to offer. Vice versa how can a home owner assure a potential buyer that the property will or will not be rebanded?

If the improvements would push the dwelling's 1991 value (Eng & Scot) or 2005 (Wales) into the next band. Only the VOA (E&W) or Assessor (Scot) can decide that, and they usually would not make an inspection until after the dwelling has been sold. So there is really no way a prospective purchaser can tell, neither can a vendor give any assurance that the band won't increase.

As I stated in a previous reply the new band would be the band expected for a house of that type and size. An increase in CT payments of £300 a year, is only £6 a week, so if your budget is that tight, should you be spending so much on a house?

Pete9501

lincroft1710 wrote: »

Why would a homeowner reduce the price .

I think when it all first started there were a number of owners in the likes of Mayfair and Kensington who were horrified to find they were not in band H and surely there must have been a mistake.