Martin Lewis reveals two simple checks that could lower your council tax bill forever (Image: GETTY)
Martin Lewis shared two checks households can make if they believe they are overpaying council tax, which could result in a lower bill. According to the Money Saving Expert, an estimated 400,000 people in England and Scotland may be in the wrong band.
Speaking to Good Morning Britain viewers this week, Mr Lewis, who has been spreading awareness of the issue for nearly 20 years, suggested: “What you need to do is go onto Valuation Office Agency to check your council tax band of an identical property, or if it’s Scotland, Scottish Assessors Association website.
If you’re in a higher band, the name is in identical properties; then you need to work out what band you would have been in 1991 if that shows you had a band. Then you need to look at going forward to get your band lower.”
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An estimated 400,000 people in England and Scotland may be in the wrong band. (Image: Getty)
Council tax payments depend on the property’s band, which is determined by the value of the home as of April 1, 1991, and these bands range from A to H.
However, these may not be accurate. In an attempt to set up council tax “quickly” in 1991 following the cease of the poll tax, the Government devised a “stop-gap valuation” to determine what council tax bands were.
The stop-gap valuation was supposed to be temporary, and it involved estate agents driving past properties to estimate their value. These valuations were rushed, with agents given a list of 300 to 400 properties at the start of the week and required to complete them by Friday.
Agents often did all the valuations in a single day, which cast doubt on their accuracy. This means many households have been paying significantly higher than what their properties should be.
In Wales, a full revaluation was carried out in 2003, so it’s less likely that those properties are in the wrong band. There has been no revaluation in England and Scotland, leaving 400,000 estimated to be paying more.
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How to check and dispute your council tax band
To dispute a band, Mr Lewis’s ‘Check and Challenge’ method comprises two steps: comparing your property’s band to your neighbours and checking the valuation of your property in 1991.
To check a neighbour’s band, visit Valuation Office Agency if you’re in England, or Scottish Assessors Association website if you’re in Scotland.
When comparing your band with your neighbours’, make sure the properties are as similar in size and value as they would have been in 1991. If neighbours with similar properties are in a lower band than you, you may be able to make a claim.
To find out the valuation of your property in 1991, visit a property site like Rightmove or Zoopla and input your street name. You should be able to view the property’s sales history.
In England, the council tax bands based on the value of a property on April 1, 1991, include:
- Band A – property value up to £40,000
- Band B – property value over £40,000 and up to £52,000
- Band C – property value over £52,000 and up to £68,000
- Band D – property value over £68,000 and up to £88,000
- Band E – property value over £88,000 and up to £120,000
- Band F – property value over £120,000 and up to £160,000
- Band G – property value over £160,000 and up to £320,000
- Band H – property value over £320,000.
In Scotland, the council tax bands are:
- Band A – property value up to £27,000
- Band B – property value over £27,000 and up to £35,000
- Band C – property value over £35,000 and up to £45,000
- Band D – property value over £45,000 and up to £58,000
- Band E – property value over £58,000 and up to £80,000
- Band F – property value over £80,000 and up to £106,000
- Band G – property value over £106,000 and up to £212,000
- Band H – property value Over £212,000.
However, Mr Lewis suggested only making a claim if your property passes both the neighbour and the valuation checks. If you only pass the neighbour’s check, it could mean your neighbours are in the too-low bands, not you being in a too-high one. Requesting a change could result in their band being increased, which may not make you very popular.
If you’d like to make a claim, check if your local council has an online claim form via a Google search, or simply call or email your local council.
The advice comes as millions of households across the UK face council tax hikes of up to nearly 10% this month. Nearly nine in 10 (88%) of 153 upper-tier authorities in England imposed a 4.99% increase. However, some councils, such as Windsor & Maidenhead and Bradford, saw hikes of up to 8.99% and 9.99%. In Wales, council tax increased by 4.5% to 9.5%; in Scotland, it increased by at least 8%.
You can check how much your council tax will increase from April 1 using our calculator.
More ways to cut your council tax bill
If you find your property is in the right band, there are other ways you may be able to cut your council tax bill, depending on your living situation.
Certain individuals qualify for discounts or exemptions. For example, a single-person discount of 25% applies if only one adult lives in the property.
If a household has more than one resident, but all except one are “disregarded”, they may also receive a 25% discount. A 50% discount applies if all residents are classified as disregarded.
According to GOV.UK, people are disregarded if they are:
- Under 18 years old
- On certain apprentice schemes
- Aged 18 or 19 and in full-time education
- Full-time students at college or university
- Under 25 and receiving funding from the Education and Skills Funding Agency
- Student nurses
- Foreign language assistants registered with the British Council
- Severely mentally impaired
- Live-in carers for someone who is not their partner, spouse, or child under 18
- Diplomats
If the property has been adapted for someone with a physical disability, the council tax bill may also be reduced. Additionally, people on low incomes or specific benefits might qualify for further help through the Council Tax Reduction scheme.
This scheme, run by individual councils, can offer reductions ranging from a small percentage to covering the full cost of the bill, depending on factors such as income, savings, and household composition. People should contact their local councils to find out what’s on offer.
