Martin Lewis is calling on households throughout England and Scotland to review their Council Tax bands, as they could be entitled to payouts totalling thousands of pounds.
Part of an article on the Money Saving Expert (MSE) website reads: "It's important to check your property is in the right one – something our tried-and-tested system can help with. Some homeowners and renters have been overpaying Council Tax for many years, even decades, because they're in too high a band".
Eight Council Tax bands explained
There are eight bands altogether, ranging from A through to H, and your home's assigned band dictates your monthly Council Tax payment. Band A is the lowest cost option, while H carries the highest charge. On MSE, Mr Lewis highlights that numerous properties remain in incorrect Council Tax bands, unchanged since 1991.
Why could some people be in the wrong band?
Properties were allocated bands according to their "worth" at that time, but the process was problematic due to Government time constraints. Welsh properties underwent reassessment in 2005, however England and Scotland have seen no equivalent updates. This, Mr Lewis argues, explains why "you could be paying more than your neighbour even though you live in exactly the same size property".
How do I check if my band is right?
To determine whether your band is excessive, MSE suggests starting with two initial steps. First, verify whether your Council Tax band exceeds those of neighbours residing in comparable or identical properties. This can be checked online for England here, and for Scotland here.
"If neighbours in similar properties are in a lower band than you, then you may have a claim. But it could mean they're all in the wrong band." In certain situations, rather than your band being reduced, your neighbours might be bumped up into a costlier one.
Secondly, you'll need to work out what your property was valued at back in 1991. If you purchased your home after 1991, you can simply use its sale price and date to calculate this. If you're renting or bought before then, you'll need to find an approximate valuation. Free property valuation websites including Zoopla and Rightmove can assist you with this. You can then use a useful MSE tool to calculate the home's 1991 value, and determine which band the property would have fallen into at that time.
Who should challenge their Council Tax band?
MSE warns: "Warning - only challenge [your Council Tax band] if you pass both checks above". You're also only able to challenge your Council Tax band if you've resided in the property for a minimum of six months. To read the MSE article in full, and to find out how to challenge your Council Tax band, click here.
