A note of caution has been issued
Council tax is rising for most this month(Image: coldsnowstorm via Getty Images)
Millions of households face a council tax sting this April, with bills jumping as much as 10 per cent in some areas of the UK. Desperate occupants are often urged by some finance experts to fight back by appealing their council tax band, but one has warned this move could actually leave families paying even more.
Those contesting their council tax banding could save around £500 a year, based on dropping from Band E to D, however, there is a possibility it could also increase by this much if you’re not careful.
Where in the UK is council tax going up the most?
In England, council tax increases are capped at five per cent, however seven areas have been given special permission to go higher due to funding pressures, with local households paying the price. While there is no legal cap on council tax rises north of the border, Scotland has confirmed some households will face a 10 per cent increase in their council tax bills.
North Somerset and Shropshire will see the biggest increase in England, with council tax in these areas going up by almost nine per cent from April. Caerphilly council has proposed a 6.35 per cent increase to household bills, which is the single largest increase in Wales, followed by Monmouthshire with 5.95 per cent.
Homes in Scotland will see the biggest increase to their council tax bill in the UK, with Aberdeenshire and Moray homes facing an increase of 10 per cent a year and Argyll and Bute, Falkirk and Midlothian facing at least a nine per cent increase.
How to appeal your council tax banding
While you can’t make an appeal just because your council tax bill has gone up, Mel Whiting, head of mortgages at Norton Finance, has provided an honest assessment of how and when to challenge your local authority if you believe you’re paying too much.
Step 1: Check your current band
You can check your council tax band online for free in England and Wales by visiting the GOV.UK council tax band checker. In Scotland this can be done through the Scottish Assessors Association. When you enter your postcode, you will be able to see your property’s band and any nearby properties and their bands for comparison.
Step 2: Compare with similar homes
The biggest red flag that your band may be wrong is if similar homes nearby are in a lower band than yours. According to the Valuation Office Agency, ‘similar’ means homes on the same street or estate, or nearby in rural areas, homes of the same property type and homes of similar size and age. If your neighbours live in a near-identical home and are paying less, this can be used as evidence to back your claim.
Mel Whiting(Image: Norton Finance)
Step 3: Make a decision on challenging
If you believe your current banding is incorrect, the property has been converted – such as split into flats or partially demolished – or comparable homes are in lower bands, then you may have a claim. You usually have a stronger legal right to challenge if you’ve owned or lived in a property for less than six months.
Step 4: How to appeal
In England and Wales, you must make an appeal to the Valuation Office Agency (VOA), while in Scotland all appeals will go to your local assessor. If the VOA rejects your request, then you may be able to appeal through the Valuation Tribunal. This is a free service, however it can take several months for disputes to be resolved.
Tempted to fight back? Proceed with caution
Mel warned that Brits should think carefully before appealing, as a single mistake could leave you paying more council tax for years to come.
She said: “Appealing your council tax isn’t a free hit. If the council decides your home is undervalued, your bill can go up substantially, and it may even trigger reviews of neighbouring homes.
“One appeal can end up costing a whole street more. In some cases, a failed appeal can permanently move households into a higher council tax band.”
Norton said it calculated the approximate council tax changes using the average of five – Manchester, Sheffield, Leeds, Birmingham, Derby – councils’ Band C, D and E rates – using the combined figures as an average to determine an approximate increase or decrease between bands.