Millions of households face council tax increases this April, but experts warn challenging your council tax band could backfire
Millions of households are bracing for a council tax shock this April, with bills soaring by up to 10 per cent in certain parts of the UK. While some financial experts often advise hard-pressed residents to challenge their council tax band, one has cautioned that this move could actually result in families shelling out even more.
Those disputing their council tax banding could pocket savings of around £500 annually, assuming a drop from Band E to D. However, there’s a risk it could also rise by this amount if you’re not vigilant.
Where in the UK is council tax rising the most?
In England, council tax hikes are limited to five per cent, but seven regions have been granted special permission to exceed this due to budgetary strains, leaving local households to foot the bill. Although there’s no legal limit on council tax increases in Scotland, it’s confirmed that some households will be hit with a 10 per cent hike in their council tax bills.
North Somerset and Shropshire will experience the steepest increase in England, with council tax in these areas rocketing by nearly nine per cent from April. Caerphilly council has proposed a 6.35 per cent hike to household bills, marking the single largest increase in Wales, followed closely by Monmouthshire at 5.95 per cent.
Homes in Scotland are set to experience the largest council tax bill increase in the UK, with properties in Aberdeenshire and Moray facing a 10 per cent annual hike, while Argyll and Bute, Falkirk and Midlothian brace for at least a nine per cent rise.
How to challenge your council tax banding
While you can’t lodge an appeal simply because your council tax bill has increased, Mel Whiting, head of mortgages at Norton Finance, offers a candid guide on how and when to contest your local authority if you believe you’re being overcharged.
Step 1: Verify your current band
You can verify 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 accomplished through the Scottish Assessors Association. By entering your postcode, you’ll be able to view your property’s band and compare it with nearby properties and their respective bands.
Step 2: Compare with similar homes
The most glaring indication that your band may be incorrect is if comparable homes in your vicinity are in a lower band than yours. The Valuation Office Agency defines ‘similar’ as 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 reside in a nearly identical home and are paying less, this can serve as evidence to support your claim.
Step 3: Decide on a challenge
If you think your current banding is wrong, the property has been altered – such as divided into flats or partly demolished – or similar homes fall into lower bands, then you might have grounds for a claim. You typically have stronger legal grounds to challenge if you’ve owned or resided in a property for under six months.
Step 4: How to appeal
In England and Wales, you must submit an appeal to the Valuation Office Agency (VOA), while in Scotland all appeals will be directed to your local assessor. Should the VOA reject your request, you may be able to appeal via the Valuation Tribunal. This is a free service, although it can take several months for disputes to be settled.
Considering fighting back? Proceed with caution
Mel cautioned that Brits should consider carefully before appealing, as a single error could result in you paying more council tax for years ahead.
She explained: “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 stated it calculated the approximate council tax changes using the average of five councils’ – Manchester, Sheffield, Leeds, Birmingham, Derby – Band C, D and E rates, using the combined figures as an average to determine an approximate increase or decrease between bands.
