Some people could be paying the wrong amount of council tax for their home because of a decades-old system. Running a few quick checks could help some homes save money - but there is a risk of others being forced to pay more.
Outdated Valuation System
Posting on Instagram, the consumer group Which? said: "Your council tax band is based on what your home was worth all the way back in 1991. That's the same year that Terminator 2 came out, and that valuation has barely changed since."
Council tax may work differently depending on where you live. For example, Wales had new valuations put in place back in 2003 and Scotland has its own system.
In England, most homes are still using the original 1991 price bands - and some people could be paying more or less than their neighbours in the exact same houses. Councils place properties into 'bands', and most people have no idea if their home is in the right category.
How to Check Your Tax Band
Which? said people should start their checks on the GOV.UK website and check their own property against their neighbours. The expert said: "If your home is similar in size, age and location, you should probably be in the same band."
It's also worth looking at what similar homes on your street sold for recently. The Which? team said: "Use a house price calculator to estimate what that would have been worth back in 1991."
Potential Risks of Challenging Your Band
Challenging your council tax band is not guaranteed to save you money. In some cases, it could lead to you and your neighbours paying out more each month.
Which? said: "If you've been in the wrong band for years, you could get a refund for what you overpaid, backdated to when you moved in. In fact, our survey found that more than half of the people who challenged their band successfully got it lowered, while only 1% saw an increase."
How to Challenge Your Band
You can challenge your band through the Valuation Office Agency in England and Wales, or the Scottish Assessors' Association in Scotland. You can check and challenge your band completely for free directly through the official government channels.
You can challenge someone's council tax band for them if they've appointed you as their 'representative' in an Authority to act form. You then need to fill in a Council Tax challenge form on their behalf - you cannot use the online service.
The Valuation Office (VO) will confirm they've got your challenge. This is usually within a few days, but can sometimes take up to 28 days. They'll review your challenge and make a decision. GOV.UK claims that this can take up to four months. If the VO needs more information, they'll contact you.
