Challenging your Council Tax band: who can, how, and what happens next

Your Council Tax band is based on your home's value in the early 1990s, not today. This guide explains the two routes for challenging a band, the evidence needed, the time limits and how appeals work.

How Council Tax bands are set

Council Tax is charged by your local council, and the amount depends partly on which valuation band your home sits in. The band is not based on what your home is worth now. GOV.UK says bands in England reflect property values on 1 April 1991, and in Wales on 1 April 2003. Scotland also uses 1 April 1991 values. This means a rise or fall in local house prices since then is not a reason to change a band; the question is what the home would have been worth on the valuation date.

The body that decides bands depends on where you live. In England and Wales it is the Valuation Office, and in Scotland it is the local assessor, who works for a Valuation Joint Board or council. Because bands are set by these valuers and not by the council that sends your bill, the council cannot change a band when you ask it to; it can only act on a decision made by the valuation body. Northern Ireland has its own system and is not covered by this guide.

Two routes: a proposal and a band review

GOV.UK describes two routes. The first is a challenge where you have a legal right, which it calls making a proposal. You have that right if you have been paying Council Tax on the property for less than 6 months, or if the Valuation Office changed your band in the last 6 months. A legal right also arises in some other cases, such as when the property has been split or merged, its use has changed, or the local area has physically changed, for example because of a new supermarket or main road.

The second route is a band review, for people who have paid Council Tax on the home for more than 6 months and think the band is wrong. It is not a legal right, so there is no formal appeal if you disagree with the outcome. The online service on GOV.UK can be used for either route, and you can also email ctinbox@hmrc.gov.uk. In Scotland, the Scottish Assessors Association explains how to make a proposal to the assessor.

What evidence is needed

For a band review, GOV.UK says you can give the addresses of up to 5 similar properties that sit in a lower band. They should match yours in type, size, age and style, and be on the same street or estate in a town, or in the same village or area in the countryside. Sale prices can also be used, but only sales between 1 April 1989 and 31 March 1993 in England, or between 1 April 2001 and 31 March 2005 in Wales. You would give each property's address, sale price and sale date. Sales closer to the valuation date carry more weight.

The Valuation Office does not treat average house price figures from property websites as strong evidence. A comparison with neighbours is only useful if the homes really are alike, so it is worth looking at what is similar and what differs, such as extensions, garages or plot size. For proposals made because of a recent change, GOV.UK asks for your name, the property address, the date from which you want the change to apply, whether you are an owner or a tenant, and a description of the change.

A worked example

The figures here are illustrative only. Suppose a household became the Council Tax payer for an England home on 1 March. Their 6 month window for a proposal would run to 1 September. If they used it and the Valuation Office took the full 4 months to decide, the decision could arrive in early January. If the decision notice were dated 10 January, the 3 month deadline for an appeal to the Valuation Tribunal would be 10 April. If a lower band saved, say, £20 a month, that would be £20 x 12 = £240 a year. That is a made-up saving to show the arithmetic, not a typical one, and what is repaid depends on the decision.

What happens after you challenge

GOV.UK says you will usually get confirmation within a few days, though it can take up to 28 days. Possible outcomes are a band change, removal from the list, a new band for a property being added, or an explanation of why the band cannot change. If the band is changed, the council revises your bill and pays any refund due. One point worth knowing before you start: GOV.UK says that a band can go up, down or stay the same, so a challenge is not risk free.

Throughout, you must keep paying Council Tax at the current band while the challenge is reviewed. If you had a legal right to challenge and disagree with the decision, you can appeal to the Valuation Tribunal for England or for Wales. The Valuation Tribunal Service says this is free, but the tribunal cannot award costs, so each side pays its own expenses, such as travel or an agent. In Scotland, Citizens Advice says an appeal goes to the First-tier Tribunal (Local Taxation Chamber).

Common mistakes and where to get free help

• Stopping payments while a challenge is pending, when GOV.UK says payments must continue.
• Using average house price figures instead of comparable homes or sales from the valuation period.
• Missing the 6 month, 3 month or 4 month deadlines for a proposal or appeal.
• Paying a firm to challenge a band, when the Valuation Office service is free.

Citizens Advice gives free guidance on Council Tax bands, and the Scottish Assessors Association handles Scottish proposals. If paying Council Tax is difficult, your council can discuss discounts or reductions, and MoneyHelper and StepChange offer free debt advice. This guide applies to people who pay Council Tax in England, Wales and Scotland. It does not cover Northern Ireland, and it does not cover disputes about discounts or exemptions, which go to the council.

Check before you act

Rules, forms and deadlines can change, so please confirm the details on the official pages linked below before relying on this guide.

Sources

• GOV.UK: Challenge your Council Tax band: <
• GOV.UK: When you have a legal right to challenge: <
• GOV.UK: When you do not have a legal right to challenge: <
• GOV.UK: After you make a challenge: <
• GOV.UK: How to challenge: <
• GOV.UK: How to challenge your Council Tax band, a step by step guide: <
• Valuation Tribunal Service: Council Tax banding appeal: <
• Citizens Advice Scotland: Council Tax: <