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Hundreds of thousands of households can reduce their council tax bill by asking for their property to be placed in a lower band, Money Mail can reveal.
Those who suspect they are in the wrong council tax bracket have little to lose by challenging it, as around a third succeed and end up paying less, while only one in 2,500 end up paying more.
Households that could succeed are typically hesitant to challenge their municipal tax band because they fear the process will be difficult and they will end up paying more, not less.
Unfortunately, the first part is true, because changing your council tax bracket can be a daunting task.
But the incredible success rate has been revealed to Money Mail and our sister website This is Money in official figures from a Freedom of Information Request.
Just ten homes – 0.04 per cent of households checking their council tax bracket in the year to April 2023 – were moved into a higher tax bracket, according to property data in England and Wales from the Office Agency Assessment (VOA).
This means council tax fell or stayed the same for 99.96 per cent of those who challenged it.
The figure could be even lower, because VOA rounded the number to the nearest ten.
By comparison, 8,430 (37 percent) of those who questioned their municipal tax bracket were moved to a lower one, although the majority (14,010, or 62 percent) remained in the same tax bracket.
Figures were similar in other recent years, with just 0.13 per cent of households (20) moving up council tax bands after appeals in 2021/22, and 0.15 per cent (20) paying more when they challenged theirs in 2020/21.
In recent weeks, most households will have received their council tax bills for next year at a new higher rate. Almost everyone will have experienced an increase of 4.99 per cent, or an extra £104 a year for a typical household.
The arrival of these impactful bills will prompt thousands of people to challenge their municipal tax band. The VOA, which manages council tax bands, sees an increase in these inquiries every April.
When the current council tax system was launched in 1991, all properties in England and Wales were valued and included in one of seven council tax bands.
Band A was for properties valued at less than £40,000 whose owners would pay the lowest level of council tax; while Band H was for properties valued at £320,000 or more, with their owners paying the highest level.
These bands are still used today.
However, the process at the time was flawed, with many valuations being judged simply by a building’s appearance rather than close scrutiny of its market value.
Even 33 years later, municipal tax brackets have still not undergone a comprehensive review. Instead, households can question theirs if they believe their home was overvalued in 1991.
Landlords challenging their council tax bands in the North West and Yorkshire and Humber were among the most successful in 2023, with 42.9 per cent and 41.9 per cent respectively seeing their band fall.
Households in the Midlands and London were among the least successful, with 25.8 and 32 per cent respectively winning their competitions.
But if your challenge is unsuccessful and you are moved to a higher rank, you could face angry neighbors as well as higher bills.
This is because when you check a council tax band with the VOA, you need to give examples of similar properties in the same area that pay less than you.
If the VOA decides that you really are paying the right amount of taxes, it may decide that other local properties must pay more as well.
This has led to cases where one property on a street has challenged a council tax band, only for all other houses on the street to have risen as a result.
In 2015, residents of Lynton Avenue in Hull ended up paying £160 more a year in council tax after a homeowner’s failed attempt to degrade their property.
Here’s how to challenge your municipal tax band:
Low risk: only 0.04% of households that checked their municipal tax band in the year to April 2023 were moved to a higher tax band.
See how your home measures up
Ask neighbors of a similar property which council tax bracket they fall into. If they are in a lower group, that increases the chances that you will need to be too.
Alternatively, if you don’t want to ask your neighbours, you can check your council tax bands, or indeed the bands for any property in England or Wales, using the VOA online tool at gov.uk/council-tax-bands .
If you live in Scotland, use the Scottish Valuers Association (SAA) at saa.gov.uk/.
Go back in time to check the value.
The next step is to calculate the value of your house in 1991, when the council tax bands were decided.
Unless your house was previously revalued for council tax purposes, it will not have changed since then.
This is often easier to sort out online, using websites such as Rightmove, which record historical sales prices going back to 1995.
If you bought your home after 1991 but before 1995, you may be able to estimate its value by searching newspaper archives for homes from the era.
Investigate the 1991 council tax bands
Next, check which council tax bracket your property should have been included in during 1991.
This can be done online at gov.uk/guidance/understand-how-concilio-tax-bands-are-assessed.
If your property appears to be in too high a band, you may have reason to change it.
Expenses: Most households will have received council tax bills for this year at a new higher rate. Almost all have seen an increase of 4.99%, or an extra £104 a year for a typical household.
Submit your challenge with evidence
The fourth step is to request that the municipal tax bracket be reassessed. Consider very carefully whether you want to proceed.
Although a small risk, there is always the chance that your band will go up rather than down and your council tax bills will go up.
In England and Wales, you can lodge a case with the VOA online at gov.uk/challenge-council-tax-band. Alternatively, claimants can email ctinbox@voa.gov.uk or call 03000 501 501.
This is a complicated process and you will have to submit a lot of evidence to support your claim. You will also be asked to explain why you think your house is in the wrong band and which band you think it should be in.
In Scotland, all of this can be done on the SAA website at saa.gov.uk/council-tax/council-tax-bands.
A Citizens Advice spokesperson says: ‘If the VOA agrees to review your band, they will write to you, usually within two months, to inform you of their decision.
“Please note that if your home is in band A, the lowest band, VOA cannot reduce it further.”
If you are successful, you are likely to pay between £100 and £400 less in council tax each year. You should also receive a refund for all the years you overpaid, backdated to the time you moved.
These payments can date back to 1993, when the tax came into force, and could amount to thousands of pounds.
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