Can you reduce your council tax?

Once you take ownership of your new home, there are several organisations that need to be contacted so that your name is confirmed as the new owner and bill-payer. Chief among these are the utilities, such as electricity provision, water and sewerage, gas, broadband and a few others besides.

One of the biggest costs, though, will be to your new local council who operate the services for the area in connection to your property: the Council Tax.

Council tax is the monies that you pay to the council to facilitate the community requirements such as refuse collection, lighting in the dark hours, maintenance of parks and public communal areas, libraries, fire and police, and a number of other items that extend the list further.

Depending on the value of your house (as designated by a chartered surveyor's prior valuation), your property will have been pigeonholed into a certain band, from A to H (and I, if you are in a Welsh property). 

There is a formula that all councils use to establish the amount of tax you must pay - this calculation is based around the amount that the council sets for Band D; from this, all the other bands are calculated.

Many of us might let out a deep breath of monetary frustration at the thought of having to pay this monthly cost (except for February and March, where the council allows a grace period). But then we might simply shrug our shoulders and set up the required direct debit to get this necessary bill paid each month.

But can you reduce your overall amount that you pay in Council Tax? The simple answer might be “yes”!

In a recent analysis of data published by the Government's Valuation Office Agency, consumer champion Which? has shown that, last year, over 10,000 households had successfully lowered their council tax - and your case could be included in those statistics for this year.

While there is some understandable concern that questioning your Council Tax might result in the council increasing the amount, Which? have shown that, while this did indeed happen last year, it was in less than a tenth of 1 percent of cases. So the augurs are good for you to maintain or reduce your tax should you want to apply.

According to the Which? assessment, the number of challenges to the Council Tax was down on the previous year, with over 43,000 contesting their billed amount in 2023. Of these, over a quarter of contestants were successful in lowering the overall bill - these comprised band reviews (a potential inaccuracy pertaining to your property), proposals (formal challenges to the list entry for council tax) and appeals (those subsequently successful following earlier failed proposals).

Which? advises these steps to querying your council tax band:

1. Check what your neighbours payincouncil tax, since they will likely have a similar property to yours, and should therefore be charged the same amount as you.
2. Check your home's value for the relevant year (1991 or 2003 depending on when the valuation assessment for your property was done). You can use the Nationwide house price calculator to establish the figure.
3. Contact the VOA directly if you think that you are still placed in the wrong council tax band, you can check guidance for England and for Wales
4. Make an appeal to the Valuation Tribunal if your formal challenge has been rejected.

Note, too, that, if you live alone (or with someone who does not have to register for council tax purposes, such as full-time students, those under 25 in approved training, and members of visiting forces), you can get a 25% reduction.

Which? also provides a helpful guide on ways to reduce your council tax bill further.

Looking to buy your first home? Need some expert conveyancing that is high quality but good value for money?

That's where you can rely on the experts at Homeward Legal! 

They will start work on your planned purchase as soon as you agree to the quotation and appoint them to represent you. 

Homeward Legal will also provide a quote that will not change - what you are quoted is what you pay for standard conveyancing process.

There are some unforeseen items that might arise during the purchase and/or sale, but the solicitor discusses these and their cost as they come up. 

In addition, to protect the homebuyer further, Homeward Legal operates a ‘no completion, no fee' promise, which ensures that, should the purchase or sale not go through as planned to completion status, no payment is required.

Call  to get your conveyancing quote started, or to discuss your concerns with your plans to move.

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