Council tax advice on new builds needed

jakub85

Hi,

Last week I received a letter from the Valuation Office (VO) indicating the band for my flat. This was set at Band E. The property is located in London, SE16 and is a new build. I bought it from the developer for ca. £450k in October 2013 (completion was only October'15).

I have strong case for believing that the property should be set at most in Band C. This is because:

1) Similar properties (2 bed flats) on a street opposite to mine were assigned Band C in 1995, when naturally it was much easier to make such estimates as the time horizon was shorter. These were also new build flats at that time.

2) Significant changes have occurred in this area, with new tube and overground station since 1991, which naturally led to significant value appreciation since that time.

3) £ values of nearby properties in 1995 (new builds) were well below the minimum threshold needed for Band E. In fact Band E was assigned to terrace houses on the street opposite to mine!


Now my questions...

- Do I stand any chance in winning this appeal if this band was assigned to 200+ other flats in my development starting from as early as 2013?

- Do I stand better chance of winning the claim by going myself or rather doing a group appeal?

- Is it possible that the tax band will be adjusted for myself only if the VO agrees with my case, and left unchanged for others?

- Are there any cases where people won appeals on new build properties, where the bands seem to be assigned pretty subjectively? I read about cases of people winning when they had old properties, and where poor values were assigned back in 1991 when the process was rushed, but have not seen any notices about new properties.


Finally, part of my appeal is because upon calling the VO I was told - "well, bands is where it is because this is a desirable area, with plenty of new developments, etc". This should have no bearing for the decision - as the key consideration is what the value was as of 1 April 1991.

Thanks!

lincroft1710

jakub85 wrote: »

Now my questions...

- Do I stand any chance in winning this appeal if this band was assigned to 200+ other flats in my development starting from as early as 2013?

It will depend on the evidence

- Do I stand better chance of winning the claim by going myself or rather doing a group appeal?

It will depend on the evidence. Plus if some appellants aren't 100% behind the appeals, VOA may be able to get their appeals withdrawn prior to a Tribunal hearing and present this as evidence of settled appeals

- Is it possible that the tax band will be adjusted for myself only if the VO agrees with my case, and left unchanged for others?

It will depend if there is anything significant which is applicable only to your home. If not and your CT band is reduced then the bands of any other identical flats should be subsequently reduced

- Are there any cases where people won appeals on new build properties, where the bands seem to be assigned pretty subjectively? I read about cases of people winning when they had old properties, and where poor values were assigned back in 1991 when the process was rushed, but have not seen any notices about new properties.

Plenty of newbuilds have had their CT bands reduced


Finally, part of my appeal is because upon calling the VO I was told - "well, bands is where it is because this is a desirable area, with plenty of new developments, etc". This should have no bearing for the decision - as the key consideration is what the value was as of 1 April 1991.

You are wrong, the bands reflect values as they would have been as at 1 April 1991, but the physical state of the vicinity is reflected as at the date the valuation is carried out i.e. 2013.

As above.....

jakub85

Thank you.

#1 I guess I was just asking whether the fact that they assigned this tax band already to 200+ flats will make it more difficult to win an appeal. But now I understand it won't so fair enough.

#2 Ok, will appeal myself.

#3 Excellent.

#4 Thanks for pointing that out! I will drop this from my appeal and will concentrate on the fact that bands in flats opposite to me are 2 levels lower.

lincroft1710

How do current sale prices of the Band C flats opposite compare with your purchase price?

jakub85

Sales prices - or rather those values which are in the land registry records - are within a similar ballpark of my flat or up to 10% lower. However, this is surely to be expected because this is a new build flat. Much like those others flats were at that time back in 1995, a new build will command some premium.

Even if you assume that this difference is valid (objectively flats are nicer), and you discount £450k and £400k, back to 1991 levels you can appreciate that the difference in absolute terms will decrease the further you will move.

jakub85

Also in terms of current prices, my friend has a flat in Angel/London (and these cost twice the value mine is in the current market) and she is also in Band E...

lincroft1710

My house is worth maybe £275K max and is Band D (and the band had to be verified by senior VOA person when I moved there in 1998). So if your flat cost £400K, Band E doesn't seem unreasonable. If the flats opposite are selling for around £360K, Band C seems far too low.