Is Your Home in the Right Council Tax Band?
Council tax is one of the biggest bills most of us pay, and it's based on what your home was worth in 1991. Some homes end up in the wrong band, and the difference can be hundreds of pounds a year. Here's how to check yours, and what to think about before you challenge it.
How bands work.
In England, every home is put into a band from A to H based on what it would have sold for on 1 April 1991. That's true even if it was built much later. The bands are:
- Band A: up to £40,000
- Band B: £40,001 to £52,000
- Band C: £52,001 to £68,000
- Band D: £68,001 to £88,000
- Band E: £88,001 to £120,000
- Band F: £120,001 to £160,000
- Band G: £160,001 to £320,000
- Band H: over £320,000
What it costs round here.
Culcheth, Glazebury and Croft pay a little more than the rest of Warrington because of their parish council charge. Lowton falls under Wigan Council, which has lower rates across the board. Here's how a band D home compares:
What one band is worth.
In Culcheth, the difference between band C and band D is about £270 a year. Between D and E, it's about £540. If your home has been in the wrong band for years, that adds up.
In Culcheth, moving from band C to band D costs about £270 a year.
Check your band first.
You can look up any home's band for free on the GOV.UK council tax checker. Search your own address, then look at your neighbours, especially homes built at the same time, with a similar size and layout. If your house is in band D and identical houses on your street are all in band C, that's worth looking into. If yours has a big extension and theirs don't, it probably isn't.
When you have a strong case.
The Valuation Office Agency, which sets bands, says you have a legal right to have your band reviewed if:
- You've been paying council tax on the property for less than six months.
- Your band has been changed in the last six months.
- Something has physically changed in your area that affects the value of homes, such as a major new road.
If you've been paying for longer than six months, you can still ask for a review, but you'll need good evidence. That usually means up to five similar homes nearby in a lower band, or sales evidence from the early 1990s.
The risk most people don't know about.
A review can go either way. If the Valuation Office Agency decides your home was put in too low a band, it can move you up instead. It can also review your neighbours' bands at the same time, which won't make you popular on the street. That's why it's worth being sure of your evidence before you start.
A review can go either way. Your band can go up as well as down.
Keep paying while you wait.
You have to carry on paying your council tax as normal while your band is being reviewed. If it's lowered, any overpayment is refunded.
Why it matters this winter.
As well as the yearly saving, your band now affects whether you get help with energy bills. The £100 Household Energy Payment announced in last week's Budget goes to homes in bands A to D.
If you're buying.
It's worth checking a home's council tax band before you make an offer, not after you move in. It's part of what the home will cost you to live in each year, and it can vary between houses that look very similar from the outside.
Thinking about moving? If you'd like an honest chat about what your home is worth now, rather than in 1991, call Sam on 01925 767000 or email sam@courtyardhomes.co.uk.
