We are looking at properties with a view to moving house and are paying particular attention to what council tax bracket they are in as we want to try to keep future tax payments at a manageable level.
If an estate agent markets a property as being Band C, for example, what legal rights, if any, do we have to ensure that when we buy the property and move in, the property will remain in Band C and not Will it be in band C? elevated to a higher level by the city council?
I ask this because when we bought our current property it was marketed as band D but the council raised it to band E at the time we moved in. Keith Carey, Faversham
This is Money reader Keith Carey is worried about changing council tax bands if he moves house.
This is Money’s Jane Denton responds: Council tax bands are important because they determine how much council tax you pay.
Council tax band valuations are based on the location and value of a property at a specific time, i.e. 1 April 1991 if located in England.
Properties are grouped on the same basis, including residential homes purchased through discount schemes such as the right to buy.
For residential properties in England, there are eight council tax bands, ranging from A to H. The higher the band, the more council tax will be paid. Different thresholds and bands apply in Northern Ireland, Scotland and Wales.
In England, a property included in band C of council tax has, on 1 April 1991, a valuation of between £52,000 and £68,000.
You won’t be surprised to learn that the council tax banding system is much maligned and often seen as outdated.
There are grounds to challenge the municipal tax band and property valuation, although they are limited.
The ability to obtain legal redress against your estate agent or others if your council tax band changes is even more limited.
Expert: Nyree Applegarth is head of real estate litigation at Higgs LLP
Nyree Applegarth, director of property litigation at Higgs LLP, says: Unfortunately, when purchasing a property, there is no legal guarantee that your council tax bracket will remain the same after you move.
The fact that you have been advertised as belonging to a particular gang will not give you any compensation against the estate agent if they later change.
Although the bands are based on the value of a property, as of 1991 in England, some criteria can change this.
A change in the size of the house can cause a change; For example, if the house has been extended or divided into smaller apartments, you can move to a higher or lower band.
The stripe of your property could also be affected by the rebranding of similar properties nearby. Some councils are very interested in this, and if they know that they have given planning consent for an extension, for example, once the property is sold, they will often write to the new owner to say that they want to inspect, with a view to returning . -bands.
If your municipal tax band is changing, the Valuation Office Agency (VOA) will send you a letter confirming this.
If, during the conveyancing process, you are informed that the property has been extended or altered, you should be aware that council tax bands may change after you purchase the property.
In terms of legal rights, you can appeal the decision within six months of the VOA informing you of the change to your municipal tax band.
You must complete an appeal form, providing supporting evidence to justify your disagreement with the VOA assessment. You must provide evidence, which can be found on the Government website.
To put it briefly, you must show evidence that five similar properties, in terms of size, age, layout and type, in the same area have a lower council tax band.
Additionally, if you are in England, you must prove that the price of your property in 1991 does not fit the council tax band you are currently in and that no major changes have been made to the house in terms of design and size.
After registration, you and the council have four weeks to submit additional evidence.
The appeal culminates in a hearing by the Assessment Tribunal, which is impartial and held remotely.
During the hearing, both sides present their cases. You will be asked questions and you can ask questions too. The Court’s final decision is issued within one month following the hearing. This service is free and does not require legal representation. They are also designed to make court proceedings as informal as possible so that people feel comfortable.
If you are successful at your hearing, the court will order the VOA to change the list of council tax bands, which will normally take around two weeks to change.
If it is not successful, there will be no changes. Unfortunately, council tax is often at the discretion of the council and homeowners cannot change their bill because they are unhappy.
If you cannot pay your council tax or are experiencing difficulties, you can contact the council who can help you spread payments or support you with discounts or reductions.
A tough talk: The sales agent cannot guarantee that the municipal tax is respected, says expert Michael Zucker
Michael Zucker, of real estate agency Jeremy Leaf & Co, said: Council tax bands are based on the market value of each residential property, surprisingly, as of 1 April 1991, but if subsequent alterations and improvements have been carried out, such as extensions or loft conversions, then the Agency The Valuation Office may consider it appropriate to place your property in a higher band.
It is possible that when you previously purchased a property, previous modifications were communicated to the Valuation Office Agency and that this required a modification to the band.
When purchasing a property, it is a good idea to check the council tax bracket and annual amount payable online rather than relying on the information provided by the estate agent.
The council tax payable can also vary greatly between different local authorities.
If the property has been extended, then you or your solicitor should find out from the seller whether the council tax band has previously been amended to reflect those improvements.
Since the council tax bands are based on historical values from 1991, there can be many anomalies.
Significant Victorian terraced houses in previously under-appreciated inner urban areas may be in a much lower council tax band than a smaller modern terraced house with garage in the suburbs, although the current value of the semi-suburban may be much lower .
The selling agent cannot guarantee that the council tax bracket will not change in the future as they have no control over this.
It is up to you to do your own research and determine if the property appears to be in the correct band by looking at the bands of similar properties and locations.
