
Council Tax Bands
Lower your band & save £1,000s
With many households struggling due to coronavirus, saving money has become crucial – so it's worth checking if you're overpaying for council tax. In 10 minutes, at no cost, you can check and challenge your council tax banding, potentially slashing what you'll pay in future AND getting a rebate going back years. Thousands have tried and succeeded, and payouts in the £1,000s are commonplace.
This is just one of our council tax MoneySaving guides. Also see how to reclaim overpaid council tax and how to claim the 'severely mentally impaired' council tax discount.

How council tax bands were originally calculated
Many homes are in the wrong council tax bands, and have been since 1991. The story:
Once upon a time, way back in 1991, in time for the launch of its new council tax system, the Government needed every property in the land to be put in a valuation band. But time was short, and the job large, so the people in charge asked estate agents and others to help.

Yet even with all the estate agents' help, they didn't have time to get the detailed information together, so they set about doing it quickly by pairing up and driving down countless streets, allocating each property a band with just a glance. They became known as "second-gear valuations" as they mostly never even stopped their cars, never mind got out of them.
Many years passed, and still nobody came to rescue the poor valuations in England and Scotland, though the Welsh Government reassessed all homes there. So the flawed old valuation still dictates much of the kingdom's banding, which is why you could be paying more than your neighbour even though you live in exactly the SAME size property.
This may sound like a fairytale, but every word is true.
MoneySavingExpert.com reported a massive reclaim success earlier this year, where one man challenged his band and saved himself and his 29 neighbours £10,000s. Read the full MSE News story here.
How much can you expect to get?

It's well worth asking: "What council tax band am I in?"
Get your banding decreased and, as well as paying between £100 and £400 less each year, the repayment should be backdated to when you moved into the property – as far back as when the tax started in 1993.
Here are some MoneySavers' success stories:
"I'm over the moon. My first challenge was rejected, but after looking to MSE for guidance I escalated my case and won. My band has now changed from 'C' to 'B'. I'm getting £200 back and £300/yr lower bills. But it's had a bigger impact as they're lowering all the apartments' bands in our block. Together we're standing to get £10,000s back in past overpayments – one neighbour is getting 18 years' worth. I guess I am about to become the favourite neighbour."
Thanks for your advice on council tax banding. I recently challenged my own banding using the information on your website and am pleased to say I have been rebanded from E to D. I've received a rebate dating back to 1993 for £7,943, plus a reduction of £470 for this year and those going forward.
Council tax reclaiming: Step-by-step

Step 1: The Neighbours Check
By far the most important step is to find out if your band's higher than neighbours in similar or identical properties. You could simply ask them, but there's no need as it's public info. The band of every property in England and Scotland is available via these websites...
In England, use the Valuation Office Agency (VOA) | In Scotland use the Scottish Assessors Association (SAA) |
So first check your band, and compare it with your neighbours' bands. Make sure the properties are as close as possible in size and value. Sadly, the sheer scale of the database means a few properties are missed off it. If that happens, either speak to your neighbours directly or contact the council and ask why.
If neighbours in similar properties are in a lower band than you, then you may have a claim (though it may just mean that they're all in the wrong band). This happened to a street in Hull, when one unidentified resident appealed as she was in band B, and all her neighbours in similar properties were in band A.
But instead of her getting a council tax cut, all her neighbours are now facing larger bills as they were all upbanded. This is why it's vital to also do the Valuation Check below.

Step 2: The Valuation Check
A second crucial step is to estimate what your home was worth in 1991, as that's when and how the council tax bands were defined.
This CAN'T be used as evidence if you challenge your band. But it enables you to check out various property prices on your street and it's an important test that you're on the right track if you do decide to challenge.
To make the valuation, follow the steps below:

At this point, we need to throw in a serious warning.
Challenging your band is not something to do speculatively without the checks, for one simple reason:
You can't just ask for your band to be lowered – only for a 'reassessment', which means it could be moved up or down.
It's even possible that your neighbours' band could be increased, although this is rare.
This is why it is crucially important you do BOTH of the checks, and to be especially careful if you've added an extension or something that increases your property's value.
In terms of you being eligible for a reduction, by far the most important check is the Neighbours Check, yet the secondary Valuation Check is useful for seeing whether your band is too high or your neighbours' are too low.

If you're convinced your property band's unfair, it's time to challenge it.
Remember the formal challenge checklist is more a safety check before doing the challenge. It's got very limited value in your appeal. However, if you source actual sales prices from around 1991, that's stronger evidence.
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Possible outcomes

A: You get told you can't challenge it
You can only formally challenge your council tax band if you've lived in the property for six months or less. This is also called making a proposal to change your council tax band.
This is done through the Valuation Office Agency (VOA). It might be able to change your band before you need to challenge, so get in touch with it first and explain why you think your band is wrong – make sure to include evidence. If you're unhappy with its decision, you can then formally challenge via its website.

B: Your challenge gets rejected
If you challenged your banding and were rejected – and you think it's wrong – you've got three months to appeal to the Valuation Tribunal.
Note: this option is only available if you've lived in the property for six months or less, or any of the other qualifying circumstances apply to you.
If you've lived in the property for more than six months and the VOA has decided there isn't enough evidence to review your case, or it has done so and decided not to change your band, you won't be able to appeal and the matter ends there. However, if you find new evidence that hasn't already been reviewed, you can try again.
Remember, the check and challenge isn't a guaranteed system. The two checks are a strong indication that you should consider challenging your banding, but that doesn't mean it will always actually be changed.

C: You succeed!
Expect to have your band lowered and make sure you get a backdated rebate from when you moved into the property (or 1993, whichever is later). You may also want to consider contacting previous occupants, as they should be entitled to a payout too.
Please share your story. The more info we have, the better we can finesse this system. Please report your council tax rebanding successes on the MSE Forum.
Council tax rebanding Q&A
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Ensure you're getting council tax benefits & discounts

Council tax band changes aren't the only way to save money. Under certain conditions you're able to get a reduction on your council tax bill, or possibly be exempt altogether. If any of the following circumstances apply to you, contact your council immediately as you need to apply – reductions are not deducted automatically. Some benefits aren't always backdated so if your circumstances have changed and you're now eligible, make sure you apply ASAP.
But it's important to note that some of the discounts and benefits below may not be available in your area. This is because in April 2013 the system of council tax benefits was localised, meaning each local authority now decides what support to offer its residents. So you need to contact your local authority to check.
In short, here's how much you're likely to pay...
You pay 100% if...
- Two or more adults are living together.
You pay 75% if...
- One person medically certified as having 'severe mental impairment' (SMI), eg, Alzheimer's, and one adult are living together. There would be a 25% single person discount applied to the bill.
- One student and one adult are living together. There would be a 25% single person discount applied to the bill.
You pay 50% if...
- One person medically certified as having 'SMI' and one live-in qualifying carer are living together. All residents would be "disregarded" for the purposes of council tax, meaning that 50% council tax would be payable.
- One person aged under 18 and one qualifying live-in carer are living together. All residents would be "disregarded" for the purposes of council tax, meaning that 50% council tax would be payable.
You pay 0% if...
- It's an all SMI household. The property would be exempt, so no council tax would be payable.
- It's an all student household. The property would be exempt, so no council tax would be payable.
- It's an all student/SMI household. The property would be exempt, so no council tax would be payable.
- One person medically certified as having 'SMI' and one person aged under 18 are living together. The property would be exempt, so no council tax would be payable.
How do I apply for these council tax discounts? You need to apply to your council for these discounts; they aren't deducted automatically. To apply, visit Gov.uk.

Pay bills over 12 months, not 10 (in England)
Many people have complained to us that council tax is paid over 10 months rather than 12, making monthly budgeting difficult (as you pay monthly for 10 months then get a two-month holiday).
In April 2013, the Government announced all councils in England must allow you to pay your council tax over 12 months.
However, we've heard there are worries that as it may impact their cash flow, some councils may not go very loud on telling people about this option. If you want to change how you pay, it's safest to contact it yourself.
How do I do this? If you live in England, contact your council and tell it you want to change to the new payment schedule. Make sure to check your new bill when it arrives to see that the schedule has definitely changed.
Have you moved home since 1993? Make sure you haven't overpaid your council tax. A major MSE investigation has shown that £230 million in unclaimed council tax sits in council coffers. This is due to many people not knowing they pay council tax a month (or sometimes a year) in advance. See our new Reclaim Overpaid Council Tax guide for a step-by-step on how to claim.

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