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Council tax hits hard. Cutting council tax was the top answer in a Hargreaves Lansdown survey looking at the most popular potential policies any party could consider ahead of the election. Unfortunately, it didn’t make it to the Labour manifesto, and with tax hikes on the cards in the forthcoming budget, council tax cuts are highly unlikely.
However, you may still be able to pay less council tax. New figures have revealed that more than one in four people challenging their council tax band in the year to March 2024 managed to cut their bill, so it’s worth considering whether you’re paying over the odds.
The potential wiggle room lies in the fact that when the tax was introduced in 1991, properties were all valued at the same time, and some corners were cut. There were plenty of drive-by valuations, where properties were valued without anyone stepping a foot inside. Properties were revalued in Wales in 2003, but even then, the work was still done quickly, so there was room for error.
Meanwhile, newer properties are valued based on what they might have been worth when the valuations were done, so valuers are making guesses based on property prices over 30 years ago. That’s never going to be an exact science.
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If you challenge your bill, and they decide they valued your property too highly, you could get lower bills — plus a refund.
However, before you start, it’s worth being aware that challenges can mean the valuation is raised instead of lowered so you could end up paying an even higher rate of council tax. It’s not a hugely common outcome — it happens in less than 1% of cases — but it’s possible, so it’s worth doing some research first.
1. Check if you’re in the same band as your neighbours
If you’re on good terms, the easiest approach is to ask neighbours in very similar properties to you what they pay. If you’d rather not ask, you can check the Valuation Office Agency (VOA) website. If there’s a difference, you might be onto something.
2. Work out roughly what your house was worth in 1991
If there’s a difference between what you and your neighbours pay, you need to find a sensible 1991 valuation.
Zoopla lists historic sold prices, so you can put in your postcode, and search for similar properties sold around that time. Then compare them to the list on the VOA and see roughly what band you should have been put in. This will show whether it’s you or your neighbours who are likely to be in the wrong band.
If you’re on the wrong band, contact the VOA, either through the government website or by calling them on 03000 501 501.
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If your research shows you’re likely to be in the right band, you may still be able to get a discount. If you live alone, you should be able to apply for 25% off your bill.
There are also discounts for people with a severe mental impairment like Alzheimer’s, certain full-time carers for people with disabilities on specific benefits, and people on pensions credit. You can explore discounts on the government website.
It’s worth checking your position, and seeing if you can cut your council tax bill.
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