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Tax banding with attic conversion but no value increase

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248Matt
248Matt Posts: 6 Forumite
Fourth Anniversary First Post
edited 5 March 2024 at 12:09AM in House buying, renting & selling
Hello. We purchased our home in Dec 2017. One of the reasons we went for this particular property is the benefit of a attic bedroom conversion and on the 1st floor two of the bedrooms had been knocked into one. So our three bedroom house had become a fourth with the attic. but then returned to a three via joining two up. 

My tax banding is one level above my neighbours however, with recent research I have found that my house value is pretty much the same as the neighbours.

Now I was told tax banding goes up with extensions/conversions due to the increase in value, but my house value hasn't increased 

Can someone shed light on this for me please, before I began to look into it being officially checked 

Thank you

Matt

Comments

  • MattMattMattUK
    MattMattMattUK Posts: 11,149 Forumite
    10,000 Posts Fourth Anniversary Name Dropper
    248Matt said:
    Hello. We purchased our home in Dec 2017. One of the reasons we went for this particular property is the benefit of a attic bedroom conversion and on the 1st floor two of the bedrooms had been knocked into one. So our three bedroom house had become a fourth with the attic but then returned to a three with two being opened into one. 

    My tax banding is one level above my neighbours however, with recent research I have found that my house value is pretty much the same as the neighbours.

    Now I was told tax banding goes up with extensions/conversions due to the increase in value

    Can someone shed light on this for me please, before I began to look into it being officially checked 

    Thank you

    Matt
    It can go up, it depends if the property moves into the next band or not, the value might move but remain within the band, or it might move from one to the next.
  • 248Matt
    248Matt Posts: 6 Forumite
    Fourth Anniversary First Post
    But if the value of my house price is similar to my neighbours then surely my council tax should be the same also?

    I was under the impression that improvements such as extensions/conversions can cause your council tax band to increase but that would be in relation to the house value increasing?
  • markin
    markin Posts: 3,860 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper Photogenic
    The Value has gone up as it now has more sq footage, and it could be made a 4 bed again with just a days work.
  • Bigphil1474
    Bigphil1474 Posts: 3,531 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Was your council tax band changed when you bought it? Sure I read somewhere that CT bands can be reviewed when properties change hands - if your neighbours hasn't, maybe they've got that to come. If your house is similar to others in the area and they are all a lower band, then you might have an argument to have yours reduced. 
  • Albermarle
    Albermarle Posts: 27,776 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Was your council tax band changed when you bought it? Sure I read somewhere that CT bands can be reviewed when properties change hands - if your neighbours hasn't, maybe they've got that to come. If your house is similar to others in the area and they are all a lower band, then you might have an argument to have yours reduced. 
    We tried this, although we knew from research that getting your council tax band changed is not easy.
    The end result was that they increased the neighbours tax band instead.
  • GDB2222
    GDB2222 Posts: 26,194 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Was your council tax band changed when you bought it? Sure I read somewhere that CT bands can be reviewed when properties change hands - if your neighbours hasn't, maybe they've got that to come. If your house is similar to others in the area and they are all a lower band, then you might have an argument to have yours reduced. 
    We tried this, although we knew from research that getting your council tax band changed is not easy.
    The end result was that they increased the neighbours tax band instead.
    That must have made the neighbours happy? 
    No reliance should be placed on the above! Absolutely none, do you hear?
  • Albermarle
    Albermarle Posts: 27,776 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    GDB2222 said:
    Was your council tax band changed when you bought it? Sure I read somewhere that CT bands can be reviewed when properties change hands - if your neighbours hasn't, maybe they've got that to come. If your house is similar to others in the area and they are all a lower band, then you might have an argument to have yours reduced. 
    We tried this, although we knew from research that getting your council tax band changed is not easy.
    The end result was that they increased the neighbours tax band instead.
    That must have made the neighbours happy? 
    They were surprisingly understanding  :)
  • My neighbour bought his house in August 2023, the previous owner had done work to extend it to add a small bedroom in 2016. There was no increase in Council Tax band until it sold last August. My understanding is the Council inform the Government Valuation Office (VO) of a Planning Permission granted (the extra bedroom in this case) but the Council Tax band is not reviewed by the VO until the next sale. My neighbour received the VO notice changing the band 6-months after purchase, not happy!
  • lincroft1710
    lincroft1710 Posts: 18,871 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    If alterations are made to a property and planning permission and/or building regs applied for and granted, then the entry for the property in the Valuation List will have the letter "I" against it for "Improvement Indicator". This shows that following the next sale the VOA will review the CT band because of the alterations and warns potential purchasers there may be a band increase.

    Without more detail about the neighbour's property and how the value of each property was obtained, it is not possible to ascertain if the OP may have a case for rebanding. In these cases it is always helpful to know the band of the subject property

    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
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