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Retrospective Claim for Incorrectly Charged Council Tax

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Comments

  • Evening

    Sorry, I realise that this is an old thread but I was hoping I could press for more details around your resolution with the council. I have a similar situation now myself and I'm wondering how to approach 

    Thanks in advance
  • Alderbank
    Alderbank Posts: 4,343 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper
    Welcome to the forum.

    Yes it is an old thread and the original poster has not returned for some time.

    If you read the thread, you will see that @user1977 said 'Council tax has its own legal setup and is nothing to do with general consumer rights'. However a different part of this site does have people who deal with council tax and might be able to help you.   

    Follow this link:


    https://forums.moneysavingexpert.com/categories/other-reclaiming-mortgage-fees-council-tax-etc
  • DullGreyGuy
    DullGreyGuy Posts: 18,613 Forumite
    10,000 Posts Second Anniversary Name Dropper
    Last February, my local council informed me, by letter, that they had undercharged me and my wife’s Council Tax, since July, 2015. They had applied a student discount that was not appropriate. In April, this year, I received 7 separate ‘bills’, for each Tax period, totalling just over £2500. The council employee, I spoke to on the phone, admitted that the error was made by the council. 

    Is it legal to retrospectively claim this money? For services already provided? And if so, could others;  such as my mortgage company, or local filling station , make similar claims?

    Thank you, in anticipation of your thoughts and replies,
    Stephen
    Council Tax debt is an unsecured debt which means that it will expire after 6 years according to the Limitation Act 1980 in England & Wales. Scotland is 5 years. 

    In other words, they can only pursue you for the last six years worth of underpayments which would be from 2017 (England & Wales) or from 2018 (Scotland). 

    Unfortunately, you are still liable for the last six or five years depending where you live in the UK. 

    I would however hope that if the council made the error, they would give you a reasonable timeframe to pay or a payment plan.  
    Council Tax is a tax and as such is not subject to the 6 year rule. Plenty of examples on this forum of CT payers being chased for CT under or non payment dating back more than 6 years. 
    Not exactly true @lincroft1710. It's not subject to the Law of Limitations but the Council Tax (Administration and Enforcement) Regulations 1992 regulation 34(3) gives a 6 year limitation. 

    Once a magistrate order is obtained there is no time limit for enforcement 
  • lincroft1710
    lincroft1710 Posts: 19,502 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Last February, my local council informed me, by letter, that they had undercharged me and my wife’s Council Tax, since July, 2015. They had applied a student discount that was not appropriate. In April, this year, I received 7 separate ‘bills’, for each Tax period, totalling just over £2500. The council employee, I spoke to on the phone, admitted that the error was made by the council. 

    Is it legal to retrospectively claim this money? For services already provided? And if so, could others;  such as my mortgage company, or local filling station , make similar claims?

    Thank you, in anticipation of your thoughts and replies,
    Stephen
    Council Tax debt is an unsecured debt which means that it will expire after 6 years according to the Limitation Act 1980 in England & Wales. Scotland is 5 years. 

    In other words, they can only pursue you for the last six years worth of underpayments which would be from 2017 (England & Wales) or from 2018 (Scotland). 

    Unfortunately, you are still liable for the last six or five years depending where you live in the UK. 

    I would however hope that if the council made the error, they would give you a reasonable timeframe to pay or a payment plan.  
    Council Tax is a tax and as such is not subject to the 6 year rule. Plenty of examples on this forum of CT payers being chased for CT under or non payment dating back more than 6 years. 
    Not exactly true @lincroft1710. It's not subject to the Law of Limitations but the Council Tax (Administration and Enforcement) Regulations 1992 regulation 34(3) gives a 6 year limitation. 

    Once a magistrate order is obtained there is no time limit for enforcement 
    In my VOA career I came across several instances where councils issued CT demands going back more than 6 years
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
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