Last year, many people successfully challenged their council tax and received a refund. We explain what this could mean for you.
If you’re on the wrong council tax band, you could be eligible to claim a refund. We explain how it all works.
What’s this story about?
Figures show that 11,910 people challenged their council tax rating last year, meaning they were able to claim back the money they’d overpaid and switch to a lower payment.
However, it’s predicted that there could be as many as 400,000 people who are still paying too much council tax. This can be traced back to home valuations back in 1993 – Martin Lewis explains:
"The main reason for this is after the poll tax debacle they were desperate to change the system in 1991 to get ready for the new council tax in 1993."
These valuations were rushed and could have led to many properties being mistakenly allocated to the wrong tax band. But 25 years later, the homes are yet to be revalued.
How does this affect you?
The good news is that, even if you’ve been on the wrong tax band for years, you’re able to claim the money back. If you’ve been in the wrong tax band for a long time, you could be owed thousands.
If your home was valued in 1991, it’s worth getting your home valued to check if you’re in the right tax band.
First, see what your neighbours are paying on the GOV.UK website. If they’re on a different tax band, there’s a good chance you’ll be owed money back.
Second, work out what your house was worth in 1991. This handy tool on Nationwide can help you find out what your house was worth back then.
Take a look at the bands in 1991 prices:
- Band A - Up to and including £40,000
- Band B - £40,001 - £52,000
- Band C - £52,001 - £68,000
- Band D - £68,001 - £88,000
- Band E - £88,001 - £120,000
- Band F - £120,001 - £160,000
- Band G - £160,001 - £320,000
- Band H - More than £320,000
If your house falls into a different band to what you’re paying, you should apply for a revaluation.
Head over here to set the wheels set in motion.
Disclaimer: All information and links are correct at the time of publishing.