Wrong banding?

83dons2

My flat is banded B but my neighbour is banded A. My flat is currently on sale for 10k less than his. I know the system uses notional values from 1990 or close but how can this be a fair system?! It is currently a hindrance to selling my property and I feel if it is supposed to be band A I am due back the extra amount paid over the last few years. I must admit I didn't know my neighbour was band A until I checked recently. I tried my local council but they are saying the banding is right according to their view of the value back in 1990. What a ridiculous system properties could have had all sorts of work done to them since then!

[Deleted User]

But mostly, the work would have presumably been done to increase the value, rather than decrease it.

83dons2

Exactly so if work has been done then that property should now be in the higher council tax band to reflect its greater worth? I would imagine my neighbour did not have central heating fitted in 1990 and now does. The values should be index linked to an approximation of current value not what it was in 1990.

lincroft1710

If you are in England or Scotland, the CT band reflects a dwelling's value as at 1 April 1991. This will remain in force until such time as Parliament decides otherwise. Any improvements carried out prior to 1 April 1993 (or date of last sale if this is a later date) can be reflected in the band. CT legislation does not permit improvements carried out after 1 April 1993 by the current owner to be reflected in the band.

So there is a possibility your neighbour's band could increase when their flat is sold. In fact there could have been a mistake made with their band and it should have always been Band B rather than Band A. I am presuming both flats are identical in size. When your flat is sold the new owner will have 6 months from date of purchase to formally appeal the band and if it is the case that your band is in fact incorrect, then any reduction should be backdated and you would receive a refund for any overpayment of CT.

Why is your asking price £!0K less than your neighbour, is £10k a small or large percentage of the asking price?

Finally the council do not deal with banding issues, that falls to the Valuation Office Agency (Eng) or Assessor (Scot).

MalMonroe

83dons2 said:

My flat is banded B but my neighbour is banded A. My flat is currently on sale for 10k less than his. I know the system uses notional values from 1990 or close but how can this be a fair system?! It is currently a hindrance to selling my property and I feel if it is supposed to be band A I am due back the extra amount paid over the last few years. I must admit I didn't know my neighbour was band A until I checked recently. I tried my local council but they are saying the banding is right according to their view of the value back in 1990. What a ridiculous system properties could have had all sorts of work done to them since then!

How do you know it's the tax banding that's the hindrance? I've bought and sold a few houses in the past but I've never once thought about the council tax band and it was never a feature of my choosing to live in a property or not. (Foolishly, maybe?)  I just think that if someone really wants to live in a property, they will accept the tax band. Although it really should be correct. Have you checked thoroughly via the government website?

https://www.gov.uk/council-tax-bands

I'd double check on there and then contact the council again and ask for a proper, valid reason.  Councils (in my experience, anyway) don't always (ever) know what they're doing! And often, where I live, people who work at the council actually make things up if they don't know the correct answer. I'm not suggesting this happens where you are but it's something to bear in mind. Make them tell you WHY. 

This link is also very informative : https://www.gov.uk/guidance/understand-how-council-tax-bands-are-assessed

lincroft1710

MalMonroe said:

83dons2 said:

My flat is banded B but my neighbour is banded A. My flat is currently on sale for 10k less than his. I know the system uses notional values from 1990 or close but how can this be a fair system?! It is currently a hindrance to selling my property and I feel if it is supposed to be band A I am due back the extra amount paid over the last few years. I must admit I didn't know my neighbour was band A until I checked recently. I tried my local council but they are saying the banding is right according to their view of the value back in 1990. What a ridiculous system properties could have had all sorts of work done to them since then!

I'd double check on there and then contact the council again and ask for a proper, valid reason.  Councils (in my experience, anyway) don't always (ever) know what they're doing! And often, where I live, people who work at the council actually make things up if they don't know the correct answer. I'm not suggesting this happens where you are but it's something to bear in mind. Make them tell you WHY. 

This link is also very informative : https://www.gov.uk/guidance/understand-how-council-tax-bands-are-assessed

As I stated in my previous post, councils do not deal with CT banding,  it is either the VOA (part of HMRC) in England and Wales or the Assessor in Scotland. I don't know about the Assessor, but the VOA are under no obligation to give precise reasons why dwellings are in different bands. I used to say something along the lines of sales evidence or settled appeals show the band to be correct and be no more precise than that (obviously if the band was incorrect, I would reduce it).

As I also previously said, it would be more productive for the purchaser of the OP's flat to make a formal appeal since the band will then have to be properly investigated