Council Tax. Are You Paying More Than Your Neighbours? Check It Out

Turning_into_scrooge

My house is actually in Band A but after looking at the explenatin of the bands we should actually be in band E due to the hike in house prices over the last 12 months. So does this mean that from this year my council tax will rise from band A to band Eor will the have to re evaluate the banding system to take into account all the current house price rises to alter the house value figures. My house is a 2 bed mid terrace house with only 1 bathroom and 3 rooms downstairs. If i end up paying what is currently band E we wouldn't have food on the table.

pseudopensioner

My house was rebanded and backdated to 1993, this was in Oct 2005. However I am still waiting for the money.

Telephone call to local council and guess what, new computer problem.

I am anticipating approximately £1500.

Anyone else having to wait for the payment? and dare I be cheeky and ask for interes?

pseudopensioner

My house was rebanded and backdated to 1993, this was in Oct 2005. However I am still waiting for the money.

Telephone call to local council and guess what, new computer problem.

I am anticipating approximately £1500.

Anyone else having to wait for the payment? and dare I be cheeky and ask for interest?

timsy

I have just found out that my next door is on a lower council tax band. I want to appeal to get the same band as them but I am worried in case during the process of this, it encourages the council to increase their band. Do you think that this is a possibility?

irnbru_2

Turning_into_scrooge wrote:

So does this mean that from this year my council tax will rise from band A to band Eor will the have to re evaluate the banding system to take into account all the current house price rises to alter the house value figures.

A re-evaluation would have to occur across the housing stock.

Don't worry, they won't penalise you personally for the rise in the housing market

Vital_Spark_2

Maisie wrote:

---

Yes I am in the same situation. House along the road with a big extension same band as ours.

Either the Valuation ofice don't know about it or haven't caught up with extension.
I did read further on that site that if the house is sold after the extension the band would be revised.

This one has been sold but rating band not changed.

Hmmm, I must have been in hibernation. I thought that the area not the size of the house was what determined the band.

The old tax system used the size of the houes but was considered unfair because the services delivered were the same. This was regarded as especially unfair in such a case as an elderly lady/man, widowed, children grown up and away from home in her/his own home using very little in way of services.

Wasn't the Council Tax and its predecessor the Poll Tax supposed to flatten out the rate for all folk?

Oh I give up. How are we ever supposed to keep track of what government does? I reckon they are deliberately obtuse to cause such confusion and bewilderment.
Maybe if they cut the CR** regarding their expenses, fancy entertainemnt bills and council cars, we wuld get a fairer system.

Why do visiting dignitaries have to eat smoked salmon etc when a good plate of stew and dumplings is much more indicative of what the folk in the hosting country or region are likely to be eating? More filling and comforting in our weatehr too.

whatamess_2

Hi all thanks for the link to the site. :T Have found I am a band C all other propertys around are A or B. Have appealed on the grounds that the pubs garden (it runs along side my back garden) has been extended since the original valuations were made. Only been here a year but every little helps. There is a £138 difference between C and B.
Will post the outcome.
Hopefully in my favour.
regards Messy

taxcollector

Council Tax came into effect on 1 April 1993 and is a tax on domestic property based on the capital value of the property. Council Tax is payable on every domestic property and revenue raised from this source pays for some of the services provided by the Council.

Non Domestic Rates (NDR) are payable on non-domestic properties, i.e. shops, offices, factories, etc.

The amount people have to pay varies according to the value of their property. All properties are allocated 1 of 8 Bands by the Valuation Office according to their value as at 1 April 1991.

Any new properties are allocated a band according to their value as at 1 April 1991, not their current value.

N.B. The Valuation Office is responsible for deciding which band a property is allocated not the Council.

Band Value
A up to £40,000
B £40,000 to £52,000
C £52,001 to £68,000
D £68,001 to £88,000
E £88,001 to 120,000
F £120,001 to 160,000
G £160,001 to £320,000
H Over £320,000

The Council Tax is set each year by calculating the amount of money to be raised in terms of Band D. A factor is applied as a proportion to 9 to determine the level of charge for each band. Therefore, if Band D charge is £900, Band A would be 6/9 of £900 = £600 and Band H would be 18/9 of £900 = £1800.


A person may appeal against the banding of their property within the first 6 months of becoming the new occupier. If they have lived in the property for more than 6 months they can only appeal in certain circumstances, i.e. if part of their property is demolished or the physical state of the locality has changed.

Liability
The occupier of the property is normally liable to pay the Council Tax, however there are exceptions to this when the owner is deemed to be liable. Where there is more than 1 person living in the property the person with the highest legal interest will be held liable. Legislation lays down a hierarchy to determine who should be liable for the charge: -

1) Resident freeholder
2) Resident leaseholder
3) Resident statutory tenant
4) A Licensee
5) A resident (can be a squatter)
6) A non resident owner

Definition of a resident: -
A person aged 18 years or over who has their sole or main residence in the property.

Where the person has more than one home, i.e. lives somewhere Monday to Friday to be near their workplace and then spends the weekends at another address, the question of sole or main residence will arise. Sole or main residence is not defined in law, however a great deal of case law is available to help Council’s reach decisions as to where the person’s sole or main residence is.

Joint and Several Liability

People, who are living together as man and wife, can be held jointly liable for the charge. Where 2 or more people have the same legal interest in the property they will also be jointly liable for the Council Tax.

N.B. The Council can look to any of the persons held jointly and severally liable to make payment in full.

Someone who is severely mentally impaired can be solely liable to pay Council Tax, however where there is another person holding the same legal interest in the property they will not be held jointly & severally liable.


Completion notices are used to determine the date when newly built properties will be complete. They are served on the owners of properties, which have been completed or are expected to be completed within the next 3 months. The notice will state a proposed completion date and unless the person appeals against the proposed date, this will become the actual completion date. Completion dates are important, as they will determine from what date the 6 months Class C exemption runs, should the property remain vacant.

Any disagreement over the date may be raised with the Council, however the owner does not have to do this and has the right to appeal direct to the Valuation Tribunal within 28 days of the notice being issued.


Appeals

Appeals may be made against any decision made by the Council regarding: -
 entitlement to exemption,
 entitlement to disabled relief,
 who is or isn’t the liable person,
 entitlement to discount,
 calculation of the amount payable.

In the first instance the aggrieved person should write to the Council stating what they are disputing and why. The Council may: -
 reject the appeal,
 accept the appeal and amend the account accordingly,
 make changes but this not satisfy the person or
 fail to respond in the time allowed, i.e. 2 months.

An appeal to the Valuation Tribunal can be made either: -
 within 2 months of being notified by the Council of their decision, or
 within 4 months if no reply is received from the Council.


Liability for Council Tax is calculated on a daily basis.
If someone moves out or into of an address or becomes entitled to or ceases to become entitled to a discount, exemption or rebate a bill will be issued to reflect the change in their circumstances.

taxcollector

If any person living in the property is disabled and the property has one of the following features: -

• a second bathroom or kitchen required for meeting the needs of the disabled person,
• a room set aside to provide facilities for the disabled person,
• sufficient room for the disabled person to use their wheelchair indoors (must use the wheelchair indoors),

the liable person will be entitled to a reduction in their Council Tax bill. The above provisions must be essential or of major importance to the disabled person’s well being.

The amount of Council Tax payable will be based on the band below that in which the property has been placed. However, it should be noted that the Band in the Valuation List will remain the same.

From 1 April 2000 Band A properties are also entitled to receive a reduction of 1/9 of Band D charge. (If easier to calculate - reduction is equivalent to 1/6 of Band A charge).

taxcollector

Class A Dwellings requiring or undergoing major repair or structural alterations

Applies to vacant dwellings – maximum 12 months exemption.

This exemption is limited to a maximum of 12 months from the date it is awarded and is applicable where:
 Properties require or are having major repair works to make them habitable
 Properties are undergoing structural alterations
 Properties have undergone major repair work or structural alterations and less than 6 months has elapsed since the work was completed.

If the property remains unoccupied after 12 months a 50% charge will apply.

Class B Empty dwellings occupied by Charities

Applies to unoccupied dwellings – maximum 6 months exemption.

A dwelling which is owned by a charitable organisation, which when last occupied was used for the purposes of that charity and which has been unoccupied for less than six months.

Any occupation of less than 6 weeks must be disregarded when determining the last day of occupation.

Class C Empty and unfurnished dwellings

Applies to vacant dwellings – maximum exemption 6 months.

Properties that have been unoccupied and unfurnished for less than six months are exempt.

N.B. If the property is sold or transferred to another ‘owner’ during that period, the six months continues to run as though there had been no break in ownership. Therefore, the new owner is only entitled to the residue of the 6 months exempt period before becoming liable to pay the 50% charge due on unoccupied dwellings.

If a property is occupied/furnished for a period of less than 6 weeks after which it again becomes unoccupied, it is only entitled to receive the outstanding balance of the 6 month exemption period and not a new 6 month period. Also during the period of occupation the liable person is responsible for the Council Tax in the usual manner.


Class D Dwellings left empty by prisoners

Applies to unoccupied dwellings – exemption granted for period of detention.

Applies where the person liable to pay the Council Tax is in Prison or is detained in Hospital or another place under a Court Order. Imprisonment for non-payment of Council Tax or fines, does not give entitlement to this exemption.


Class E Dwellings left empty as person in Hospital/Care Home

Applies to unoccupied dwellings.

This exemption applies where the relevant absentee has their ‘sole or main’ residence in a hospital or a residential care home, nursing home, or hostel in which they are receiving care or treatment.

Class E exemption is not affected by a period of occupation by a tenant, provided the liable person has been a resident in a Care Home/Hospital since leaving the property.


Class F Dwellings left empty by deceased persons

Applies to unoccupied dwellings – maximum 6 months after grant of probate/letters of admin.

Dwellings that have been unoccupied since the date of death of the owner or tenant will be exempt until: -

 The property is sold or the lease terminated, or
 6 months have elapsed since the grant of probate or letters of administration.

If the property has not been disposed of within 6 months of letters of administration or probate being granted a 50% charge will become payable provided the property remains unoccupied.

Class G Empty dwellings where occupation is prohibited by Law

Applies to unoccupied dwellings -indefinite.

Dwellings that cannot be occupied because occupation is prohibited by law or kept empty under statutory powers, e.g. dwellings that are certified unfit for habitation by the Local Authority, compulsory purchase orders, etc. are exempt from Council Tax so long as the prohibition continues.
N.B. Any illegal occupation, i.e. squatters, overrides this exemption.


Class H Dwellings held empty for occupation by a minister of religion

Applies to unoccupied dwellings.

This class of exemption refers to dwellings such as Vicarages, Presbyteries and Manses, which are being held ready for occupation by a Minister of ANY Religion, from which to carry out the duties of their office.


Class I Dwellings left empty by someone receiving care elsewhere

Applies to unoccupied dwellings.

In circumstances where a dwelling is unoccupied and the last adult resident is away in another place, other than in a hospital, hostel or residential home, receiving care (perhaps at the home of a relative), the dwelling is exempt from Council Tax whilst that situation continues.

The care must be required due to old age, disablement, illness, drug or alcohol dependency or mental disorder.


Class J Dwellings left empty by someone providing care elsewhere

Applies to unoccupied dwellings.

Dwellings that are unoccupied because the owner/tenant is living elsewhere to provide care for another person, i.e. a relative, are exempt from Council Tax. The relevant absentee, need not be living at the same address as the person needing the care but it is essential that the relevant absentee is near to provide the level of care needed.

The care must be required due to old age, disablement, illness, drug or alcohol dependency or mental disorder.


Class K Dwellings left empty by students

Applies to unoccupied dwellings.

This exemption applies to dwellings, last occupied as the sole or main residence of the owner/tenant, who has now become a student. To qualify the person must have been a student since last occupying the dwelling or become a student within 6 weeks of the last day of residence.

If the property is let out to tenants, Class K will not apply even if they subsequently leave. For Class K to apply, the last occupier must have been the owner who is or has become a student.

Class L Repossessed dwellings

Applies to unoccupied dwellings - indefinite.

This class of exemption applies to property that has been re-possessed by the mortgagee
(e.g. a building society or bank). Whilst the property remains in the possession of the mortgagee (the lender) and is unoccupied, the mortgagee is exempt from payment of Council Tax on the property.


Class M Halls of residence

Applies to occupied dwellings.

Dwellings, such as halls of residence, provided predominantly to accommodate students, which are either owned or managed by a university or similar educational organization, are exempt.




Class N Dwellings occupied only by students or school leavers

Applies to occupied dwellings.

A dwelling which is occupied wholly by students over 18 as their sole or main residence or as a term time address is exempt from Council Tax. During vacation periods provided that a student continues to hold the “freehold”, “leasehold” or “licence” to occupy the dwelling and previously used or intends to use, the dwelling as term time accommodation then the exemption will continue to apply. However the exemption ceases if even one of the occupiers is not a student and the normal rules of liability apply.


Class O Armed forces’ accommodation

Applies to occupied dwellings as well as empty dwellings.

Dwellings, including barracks and married quarters, owned by the Secretary of state for Defence and used as accommodation for the armed forces.


Class P Visiting armed forces’ accommodation

Applies to occupied dwellings.

Exemption applies where the person is a member or dependant of a visiting armed force


Class Q Dwellings left empty by bankrupts

Applies to unoccupied dwellings.

Exemption applies where the liable person is a trustee in bankruptcy.

If the tax-payer continues to live in the property after having been declared bankrupt, then the Council Tax remains payable in the usual manner from the date following the date they were declared bankrupt, until they either leave the property or are forced to vacate it by the trustee in order to sell the property.


Class R Unoccupied caravan pitch or boat mooring

Applies to unoccupied pitches or moorings.

Pitches/moorings that were last occupied by caravans or boats used for residential purposes, are exempt from Council Tax.


Class S Dwellings occupied by persons under 18 years of age

Applies to occupied dwellings.

Any dwelling occupied solely by persons under the age of 18 is exempt for Council Tax.


Class T Unoccupied annexes of otherwise occupied dwellings

Applies to unoccupied dwellings

An unoccupied annexe, i.e. granny flat, which cannot be let separately because it is part of the main property and where it’s letting is restricted under planning regulations.


Class U Dwellings occupied by Severely Mentally Impaired persons

Applies to occupied dwellings.

Dwellings where the only adult residents are severely mentally impaired or students are exempt from Council Tax.


Class V Diplomats dwellings

Applies to occupied dwellings.

This exemption came into law from the 1 April 1997. It applies to properties occupied by a person who has diplomatic immunity.


Class W Granny annexes

Applies to occupied dwellings.

Applies to annexes as in Class T above which are occupied by a dependant relative who is elderly, severely mentally impaired or permanently disabled.

Definitions of the terms ‘dependant’ ‘elderly’, ‘disabled’ and ‘relative’.

Dependant:- relationships by marriage, common-law or step child

Elderly: - a person over 65 years of age.

Disabled: - a person who is severely mentally impaired within the meaning of
Schedule 1 of LGFA’92 or is substantially and permanently disabled
(whether by illness, injury, congenital deformity or any other disability).

Relative:- this is classed as being a spouse (including living together as man and wife), parent, grandparent, child, stepchild, grandchild, brother, sister, aunt, uncle, nephew or niece or is the parent or child of such a person.