Does a Council Tax refund attract interest and if so then at what rate?

After 11 months of correspondence and a pending appeal to the Valuation Tribunal, my local authority have conceded and agreed a refund of several thousand pounds. This represents only the actual amount overcharged. They are refusing to pay interest on the amount. If they failed to make the repayment and I were to sue them then I could claim interest. As far as I am concerned they deliberately delayed their decision in order to either hope I would go away or to hang on to my money for as long as possible thus compelling me to keep making payments by the threat of court enforcement. They have profited from banking my money and they intend to hold on to that interest in effect making a fraudulent secret profit. How do I get the interest out of them?

Comments

  • BoGoF
    BoGoF Posts: 7,098 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 10 January 2024 at 5:26PM
    Unless there is specific legislation stating that they will pay you interest then the answer to your question is "with great difficulty"

    There is a specific council tax board where you might get better knowledge - https://forums.moneysavingexpert.com/categories/other-reclaiming-mortgage-fees-council-tax-etc
  • Johnjdc
    Johnjdc Posts: 392 Forumite
    Ninth Anniversary 100 Posts Name Dropper
    The local authority don't "concede", because they don't determine council tax bands, the Valuation Office Agency determines them.
  • Thanks BoGoF I'll have a look. I'm thinking maybe "unjust enrichment"?

    Thanks Johnjdc. I clearly didn't make the position clear enough. It's nothing to do with banding but single occupant discount hence the tribunal pending.
  • lincroft1710
    lincroft1710 Posts: 18,702 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    There is no provision in CT legislation for interest to be paid on a refund of CT overpayment, so a council will not pay interest. In fact any council which paid interest in such circumstances would be criticised by its auditors. Forget such things as "unjust enrichment", what you need is what you don't have, a legal entitlement. 
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
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