People appealing council tax band ‘could get higher bills’ | Personal Finance | Finance

Millions of households are bracing for a council tax shock this April, with bills soaring by as much as 10 percent in some parts of the UK. Hard-pressed residents are often encouraged by certain finance experts to retaliate by challenging their council tax band, but one has cautioned that this move could actually result in families shelling out even more.

Those disputing their council tax banding could save approximately £500 annually, based on dropping from Band E to D, however, there is a chance 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 at five per cent, however seven areas have been granted special permission to exceed this due to funding strains, with local households footing the bill. While there is no legal limit on council tax increases in Scotland, it has confirmed some households will face a 10 percent hike in their council tax bills.

North Somerset and Shropshire will witness the largest increase in England, with council tax in these regions escalating by nearly nine per cent from April. Caerphilly council has proposed a 6.35 percent hike to household bills, which is the single largest increase in Wales, followed by Monmouthshire with 5.95 percent.

Homes in Scotland will witness the largest increase to their council tax bill in the UK, with properties in Aberdeenshire and Moray facing a rise of 10 percent annually and those in Argyll and Bute, Falkirk and Midlothian confronting at least a nine per cent hike.

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, has offered a candid evaluation of how and when to contest your local authority if you believe you’re overpaying.

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. When you input your postcode, you will be able to view your property’s band and any nearby properties and their bands for comparison.

Step 2: Compare with similar homes

The most significant indication that your band may be incorrect is if comparable 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 reside in a near-identical home and are paying less, this can be used as evidence to support your claim.

Step 3: Decide on a challenge

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.

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.