Council Tax change after buying home

Hallux

We had a disturbing letter this morning from the Valuation Office Agency suggesting they might change our council tax band because of changes made to our bungalow by the previous occupant in the past.  We only moved here 4 months ago in Feb 2022 and we budgeted and bought the property based on the information given in terms of price, council tax etc. at the time. 

These changes were made way back in 2006 according to the planning documents left by the seller.  Surely any communication by the VAO on changes to valuation should and would have been made at the time or long ago?

I presume the seller always paid council tax on the original council tax band and surely never received any document suggesting it might be increased as we have inherited the same band until now from the council.

(Not only that, the property is isolated in a corner next to trees without a street light even and the changes affect nobody else.)

We have paid over the odds for this bungalow (which may falsely affect their valuation?) using my life savings, inherited an old bodged conservatory which leaks and fences which blew down and all needed replacing and like everyone else are experiencing these huge cost of living increases.

Having budgeted for this move as (despite being diligent savers) our combined net income is relatively low and below £30K p.a.  it would seem an absolute travesty of justice to apply an increase to us at this stage after the seller had been paying the existing band for nearly 16 years!

Rodders53

Perfectly normal.  

If you check the CT band for your address you'll likely see an "improvement indicator" on the property.  https://www.tax.service.gov.uk/check-council-tax-band/search

The change to CT band/value only happens when the property is sold.

Improvement indicator
If the property has been improved or extended since it was placed in a Council Tax band, a Yes will be shown. If a Yes is shown, the band will be reviewed and may increase following the sale of the property.

lincroft1710

As Rodders has said, perfectly normal, also it happens all the time and most importantly is correct in law


CT legislation permits the owner of a dwelling to improve it without being penalised by an increased CT band. However if that dwelling is subsequently sold, then the band can be increased if need be. This legislation has been in force since the start of CT in 1993. Solicitors and property conveyancers were made aware of the possibility of increased CT band and are supposed to advise their clients accordingly.


If you paid what you believe to be over the odds for the bungalow and use up your life savings, that was your choice. You should have checked the condition of the fences and conservatory before you bought and either budgeted for their repair/replacement or negotiated a lower purchase price. Similarly if you thought that being near trees and lacking a street light was disadvantageous you should have negotiated a lower price. As CT bands are based on 1991 levels of value there may be no regard paid to your purchase price.


I would finally point out that the VOA on seeing the works which have been carried out, may decide that current band does not need to be increased.

Maskface

This is indeed perfectly normal. It seems you may not have understood at the time of buying. Your conveyancing should certainly have picked it up. As per the other things like condition of conservatory and fencing, the time to negotiate a lower price based on the condition of those is before agreeing to buy. It won't be the reply you want of course but none of this is about a travesty of justice but more about not doing your due diligence beforehand. Had you known all this beforehand you possibly wouldn't have paid over the odds.

Hallux

Maskface said:

This is indeed perfectly normal. It seems you may not have understood at the time of buying. Your conveyancing should certainly have picked it up. As per the other things like condition of conservatory and fencing, the time to negotiate a lower price based on the condition of those is before agreeing to buy. It won't be the reply you want of course but none of this is about a travesty of justice but more about not doing your due diligence beforehand. Had you known all this beforehand you possibly wouldn't have paid over the odds.

I didn't say the other significant stuff was about a travesty of justice - just the later council tax band shock letter which is not openly declared beforehand to an unwitting buyer. 

The "other stuff" was just to give context along with the cost of living rises which we are all facing to show how much this hurts (not that you should care).  To make it even more galling we left a band D property with solar panels after over 30 years there and never got an energy rebate.  Still, Ukraine helps us keep perspective and count our blessings!
 
I observed some bodging and queried re the conservatory but they played dumb (the most knowledgeable owner had died) and the seller just shrugged shoulders.  It is not easy to be pushy and assertive in such a sensitive encounter. 

I did do my diligence and trusted the owner, solicitor and estate agent apart from the fact that I was not prepared to fork out a lot of extra money for an expert to survey as I was already stretched to my limit financially.

Maskface

It wouldn't get openly declared. That's what your conveyancing is for. So your conveyancer didn't pick up something as basic as a future change of banding which would have been highlighted and you didn't pay for a survey either? But you did do your diligence? I have a feeling the dodgy conservatory is just the start of your problems....

longjohnjohnson

Hallux said:

Maskface said:

This is indeed perfectly normal. It seems you may not have understood at the time of buying. Your conveyancing should certainly have picked it up. As per the other things like condition of conservatory and fencing, the time to negotiate a lower price based on the condition of those is before agreeing to buy. It won't be the reply you want of course but none of this is about a travesty of justice but more about not doing your due diligence beforehand. Had you known all this beforehand you possibly wouldn't have paid over the odds.

I didn't say the other significant stuff was about a travesty of justice - just the later council tax band shock letter which is not openly declared beforehand to an unwitting buyer. 

The "other stuff" was just to give context along with the cost of living rises which we are all facing to show how much this hurts (not that you should care).  To make it even more galling we left a band D property with solar panels after over 30 years there and never got an energy rebate.  Still, Ukraine helps us keep perspective and count our blessings!
 
I observed some bodging and queried re the conservatory but they played dumb (the most knowledgeable owner had died) and the seller just shrugged shoulders.  It is not easy to be pushy and assertive in such a sensitive encounter. 

I did do my diligence and trusted the owner, solicitor and estate agent apart from the fact that I was not prepared to fork out a lot of extra money for an expert to survey as I was already stretched to my limit financially.

An energy rebate for what, exactly?

Hallux

longjohnjohnson said:

Hallux said:

Maskface said:

This is indeed perfectly normal. It seems you may not have understood at the time of buying. Your conveyancing should certainly have picked it up. As per the other things like condition of conservatory and fencing, the time to negotiate a lower price based on the condition of those is before agreeing to buy. It won't be the reply you want of course but none of this is about a travesty of justice but more about not doing your due diligence beforehand. Had you known all this beforehand you possibly wouldn't have paid over the odds.

I didn't say the other significant stuff was about a travesty of justice - just the later council tax band shock letter which is not openly declared beforehand to an unwitting buyer. 

The "other stuff" was just to give context along with the cost of living rises which we are all facing to show how much this hurts (not that you should care).  To make it even more galling we left a band D property with solar panels after over 30 years there and never got an energy rebate.  Still, Ukraine helps us keep perspective and count our blessings!
 
I observed some bodging and queried re the conservatory but they played dumb (the most knowledgeable owner had died) and the seller just shrugged shoulders.  It is not easy to be pushy and assertive in such a sensitive encounter. 

I did do my diligence and trusted the owner, solicitor and estate agent apart from the fact that I was not prepared to fork out a lot of extra money for an expert to survey as I was already stretched to my limit financially.

An energy rebate for what, exactly?

Sorry, not well expressed, I was referring to the £150 government grant.

Rodders53

I'm afraid you didn't do your due diligence properly.

When we moved home last time one of the (many) things I checked was the Council Tax band, if there was an "improvement indicator".  I also checked whether there had been Planning consents on the property (and in the local area for Developers building new homes)...

All especially relevant careful as we were moving hundreds of miles...

As for Council Tax rebate on the old Band D home:  you simply weren't living there on April 1st this year (the qualifying date) so don't get it for that property. https://www.gov.uk/guidance/council-tax-rebate-factsheet#will-i-be-eligible-for-the-council-tax-rebate
If your new home is currently Band D you will get it IF the band doesn't change, despite the improvements made.  If it is, or changes to, band E or above, you won't qualify.  

It was your choice to (over)-stretch yourself financially and move, taking some (risky) shortcuts.  In five or ten years the pain will have lessened and you'll look back on a lot of fuss over something relatively trivial in the grand scheme of life and home ownership.

I wish you and yours well and truly hope you will enjoy your new home.

Hallux

Rodders53 said:

I'm afraid you didn't do your due diligence properly.

When we moved home last time one of the (many) things I checked was the Council Tax band, if there was an "improvement indicator".  I also checked whether there had been Planning consents on the property (and in the local area for Developers building new homes)...

All especially relevant careful as we were moving hundreds of miles...

As for Council Tax rebate on the old Band D home:  you simply weren't living there on April 1st this year (the qualifying date) so don't get it for that property. https://www.gov.uk/guidance/council-tax-rebate-factsheet#will-i-be-eligible-for-the-council-tax-rebate
If your new home is currently Band D you will get it IF the band doesn't change, despite the improvements made.  If it is, or changes to, band E or above, you won't qualify.  

It was your choice to (over)-stretch yourself financially and move, taking some (risky) shortcuts.  In five or ten years the pain will have lessened and you'll look back on a lot of fuss over something relatively trivial in the grand scheme of life and home ownership.

I wish you and yours well and truly hope you will enjoy your new home.

It's easy I suppose to check on an "improvement indicator" if you know it exists - I didn't.  There was nothing apparent and no one gave me a clue that it did or that something so unexpected could happen many months later .. apart from those employed who I was relying on who work in this field - I don't.  I'd never heard of such a thing and hadn't moved for over 30 years.  Hindsight is a wonderful thing.

 I have no regrets whatsoever about anything I did based on our circumstances, goals and resources.  Although I took a calculated risk not paying for a survey that still doesn't make anything and everything ok.  I always refine my checklists and learn from experience and avoid slipping up on anything twice.

If the council tax band changes it will still be costing us in 10 years time.  Thanks for the good wishes.

Maskface

That's sort of the point really, perhaps you should be asking the people you employed why they didn't pick this up. Hopefully the foolhardy decision you made not to have a survey doesn't cause even bigger future slip ups than your council tax banding. That should be the bigger concern considering the financial implications of major structural issues which a proper survey would have picked up.