Council tax reband arrears

MrsBMcF

Hi

I'm looking for some advice. I bought my house April 2016 and the garage had already been converted into a bedroom. I received a letter from the council in April 2017 advising that they'd be reviewing my band because of this "extension". Fair enough I thought, it needs reviewed from time to time. I received a letter last week advising my band has been increased. I was surprised however to also receive a bill for over £300 for the year 2016/2017. Even more surprised to learn that they were giving me less than 2 weeks notice that this amount would be deducted as a lump sum by direct debit from my bank account.

Has anyone else had experience of this backdating? And how did you deal with it? I paid everything I was asked to pay last year and I'm more than a little irritated that the delay in the review of my banding has created a debt for me. If I spread this across my 10 monthly payments and take into account the increase in tax due to the reband, then I'm paying an extra £80 per month.

I accept the reband going forward but really take umbridge at backdating. I can't imagine any other bill provider being able to backdate charges in this way. Especially with so little notice of the actual financial implications.

Thanks in advance

antrobus

MrsBMcF wrote: »

Hi

I'm looking for some advice. I bought my house April 2016 and the garage had already been converted into a bedroom. I received a letter from the council in April 2017 advising that they'd be reviewing my band because of this "extension". Fair enough I thought, it needs reviewed from time to time. I received a letter last week advising my band has been increased. I was surprised however to also receive a bill for over £300 for the year 2016/2017. Even more surprised to learn that they were giving me less than 2 weeks notice that this amount would be deducted as a lump sum by direct debit from my bank account.

Has anyone else had experience of this backdating? And how did you deal with it? I paid everything I was asked to pay last year and I'm more than a little irritated that the delay in the review of my banding has created a debt for me. If I spread this across my 10 monthly payments and take into account the increase in tax due to the reband, then I'm paying an extra £80 per month.

I accept the reband going forward but really take umbridge at backdating. I can't imagine any other bill provider being able to backdate charges in this way. Especially with so little notice of the actual financial implications.

Thanks in advance

There is no backdating. You bought the house in April 2016, your liablity for council tax starts in April 2016.

What has likely happened is this; the "garage had already been converted into a bedroom", and therefore the property was due for a review of its CT band. You would or should have known this was a possibility because there would have an 'improvement indicator' registered against the property. Your solicitor should have explained this to you at the time.

CIS

Where the valuation office have made a retrospective change then the council tax calculations will be backdated and any difference between the new and old band will be charged. The valuation office are legally required to make adjustments retrospectively, where needed, the council are required to charge any council tax due for this period - if there's been a delay in re-banding then you'd need to take that up with the valuation office.

For any council tax due on a previous year the local authority only have to give 14 days and 1 instalment - they are not required to give any longer. You can ask the local authority to spread the payments for the previous years but they are not legally required to.

Craig

lincroft1710

This type of band increase "material increase and relevant transaction" occurs when a property is altered or improved by the owner and following a sale, the band is increased. In England the effective date of the band increase is the day the band is changed, but in Wales, it is the date of last sale.

Cliveman_Pieman

Is there not a time period in which the council has from transfer of ownership after which they can no longer challenge? OP says it has taken a year, I would have thought this would be close.

CIS

Cliveman_Pieman wrote: »

Is there not a time period in which the council has from transfer of ownership after which they can no longer challenge? OP says it has taken a year, I would have thought this would be close.

Any banding issue is down to the valuation office, not the council, but they will also change the date as required to ensure it is correct.

Council tax charges can be backdated as far as needed.

Craig

lincroft1710

Cliveman_Pieman wrote: »

Is there not a time period in which the council has from transfer of ownership after which they can no longer challenge? OP says it has taken a year, I would have thought this would be close.

An incorrect CT band can be changed at any time either upwards or downwards, there is no time limit.

Cliveman_Pieman

Thank you both. For some reason I had it in my head that you were 'safe' once 12 months had passed from purchasing a property.