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Checking and challenging your council tax band could save you hundreds of pounds every year on council tax bills. Here’s how to challenge your council tax band, what to beware of and other ways you may be able to reduce your council tax bill.
Yes, you can challenge your council tax band if you think it’s wrong or there has been a change that affects the property, such as it has been split into multiple properties. Your council tax band dictates how much council tax you pay, so if you successfully get your home’s council tax band reduced you’ll pay less each year for your council tax. Plus, you should be refunded for the years you’ve overpaid council tax.
An estimated 400,000 households are in the wrong council tax band. But research carefully before you challenge your council tax band because if you get it wrong, your property’s council tax band – and the amount you pay – could increase. Here’s what to do if you want to challenge your council tax band.
Here’s the process of what you need to do if you want to challenge your council tax band:
Firstly, establish whether you’re in a higher council tax band than neighbours living in similar or identical properties.
You can ask your neighbours what council tax band they’re in if you have a good relationship but you don’t need to as you can find out easily online:
If your neighbours in similar homes are in a lower band than you, you might have a claim. However, it is possible they’re in the wrong council tax band – so the next step is essential to avoid the risk of them being moved into a higher band if you challenge your council tax band.
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If you live in England or Scotland, you’ll need to find out how much your house was worth in 1991 because this is when council tax bands were set. In Wales, you’ll need to find out how much your house was worth in 2003.
To do this, you can use Nationwide House Price Calculator. Just add the price you bought your house for into the box asking how much your property was last valued at and add the date you bought it and the region the property is in. Then select that you’d like to compare that sale price to 1991 Q2. And it will show you how much the property was worth in 1991.
If you’re in Wales, set this date to 2003 Q2. Although, as the revaluation was more recent, errors are said to be less likely.
Once you’ve worked out approximately what your home was worth in 1991 (or 2003) you can see which council tax band it should have been put in based on that value.
| Council tax band | Value at 1 April 1991 in England | Value at 1 April 2003 in Wales |
| A | up to £40,000 | up to £44,000 |
| B | £40,001 to £52,000 | £44,001 to £65,000 |
| C | £52,001 to £68,000 | £65,001 to £91,000 |
| D | £68,001 to £88,000 | £91,001 to £123,000 |
| E | £88,001 to £120,000 | £123,001 to £162,000 |
| F | £120,001 to £160,000 | £162,001 to £223,000 |
| G | £160,001 to £320,000 | £223,001 to £324,000 |
| H | more than £320,000 | £324,001 to £424,000 |
| I | N/A | More than £424,000 |
It’s a good idea to check what your neighbours’ houses were worth in 1991. You can find historic house prices sales information at the Land Registry, find the most recent and use the Nationwide House Price Calculator to see what the house price would have been in 1991 in case there are any anomalies.
The results you find should help you decide whether you think you should challenge your council tax band or not.
Consider whether you feel confident that you’re in the wrong council tax band based on your research.
Be aware that you can’t just ask for a council tax band reduction – you’ll be asking for a reassessment. So think carefully before you take this step.
For example, have you had a garage conversion or had a loft conversion to add an extra bedroom? If you have, you could find your band increases if you challenge your council tax band. And bear in mind that if your neighbours are in a lower council tax band, it may be that it’s them who are in the wrong band, not you. And if you challenge your council tax band the result may be that yours stays the same and their council tax band increases.
If you’re convinced your property is in the wrong council tax band, if the property is in England or Wales you can start the process of challenging your council tax band online. Simply find your property on the government site, click on ‘Challenge this Council Tax band’ and follow the process.
You’ll need to supply evidence such as addresses of up to 5 similar properties in a lower council tax band than yours. You can also use the price that your property or similar properties sold for as evidence, if the sales were between 1 April 1989 and 31 March 1993 if your property is in England or between 1 April 2001 and 31 March 2005 if your property is in Wales.
Alternatively, you can call or email the Valuation Office Agency (VOA) to challenge your council tax band. The Valuation Office Agency’s email address is ctinbox@voa.gov.uk. And the telephone number for England is 03000 501 501 while the telephone number in Wales is 03000 505 505.
In Scotland, to challenge your council tax band you’ll need to start with the SAA website, input your details, choose to ‘make a proposal’ and they will contact you.
The Valuation Office Agency will confirm they’ve got your challenge if your property is in England or Wales; this can take up to 28 days. The VOA will then review your challenge and make a decision which can take up to 4 months.
The outcome will either be:
If you successfully challenge your council tax band, you’ll see a reduction in your council tax bill for the current year, which could save £100s. But you should also expect to be refunded for all the years you’ve overpaid council tax, backdated to when you moved into the property, as far back as when the tax was introduced in 1993. This could amount to £1,000s.
Keep up to date with council tax changes with our weekly newsletter.
If you challenge your council tax band because you think it’s wrong and you are unsuccessul, you can only appeal the decision if you’ve been in your property and only paying council tax for 6 months or your band has changed within the last 6 months.
If you’re challenging your council tax band because of a change that affects the property, such as it has been split into multiple properties, you have the right to appeal a decision of the VOA. You’ll normally need to appeal within 3 months of getting the decision. In England you can appeal to the Valuation Tribunal which is free. If you’re in Wales, send it to the Valuation Tribunal for Wales.
The VOA cannot legally change a property’s council tax band if it has been improved until it’s sold or there is a general revaluation of properties. If your property has undergone major structural changes such as an extension, the property will be given an ‘improvement indicator’. You can check if an improvement indicator has been added to your home by searching your postcode online. Improvement indicators prompt a council tax band review once a property is sold.
These improvement indicators are added to properties when the VOA receives information; for example, your council will tell them when you have built an extension. Then, when the property is sold, triggering a council tax band review, the VOA will look at the changes that have been made. The VOA says, ‘Council Tax bands cover a range of values, and often changes do not increase the value of a home enough to move it into a higher band.’
Any change to the council tax band will only affect the property’s new owners. However, there are some instances where the council tax band will be reviewed without a sale, such as if a granny annexe is created.
So what happens if you buy a house and find the council tax band increases because of a review prompted by an improvement indicator?
If this happens, you can challenge your council tax band if you became the new taxpayer within the last 6 months, the council tax band has changed in the last 6 months or in some other circumstances such as if the local area has physically changed. Unlike when you challenge your council tax band because you think it’s wrong, you don’t need to supply ‘strong supporting evidence’ in order to get your council tax band reviewed.
Also, if you buy a house which undergoes a council tax band review after it’s sold due to having an improvement indicator, you can appeal the decision.
Keep up to date with council tax changes with our weekly newsletter.
However, there are more ways you can reduce your council tax bill than by challenging your council tax bill. And you may be able to cut the bill entirely. Here’s what you need to know.
A full Council Tax bill is based on at least 2 adults living in a home. However, when calculating how many people are in the property, some people aren’t counted – this is known as disregarded.
A young person living at home: This includes those under 18 years old or 18 or 19 years old and in full-time education.
– In education or training: This includes if you’re enrolled on certain apprentice schemes, a full-time university student, a young person on a government training scheme, a student nurse, a foreign language assistant registered with the British Council
– Temporarily away from home, such as a long-term hospital patient or care home resident.
– Have learning difficulties or severe mental impairment and receive certain benefits
– If you host people under the ‘Homes for Ukraine’ scheme, they’re disregarded for council tax.
– Some other people may also be disregarded, such as some live-in care workers. Contact your local council to find out.
Some properties are exempt from council tax. These include:
– Armed forces accommodation
– Annexes which are occupied by the owner’s children
– Homes which are solely occupied by full time students
– An empty home can be exempt from council tax for up to six months if it is left unfurnished
– If you are conducting major structural changes to your home your council may offer an exemption
– If you’re selling a house on behalf of someone who has died you don’t need to pay council tax until after you get probate, as long as the property remains empty. After probate has been granted, you may be able to get a 6 month council tax exemption providing the property remains unoccupied and is still owned in the name of the person who died.
– If your home is empty for one of the following reasons it is exempt as long as it remains unoccupied: if you’re in prison, your home has been repossessed, your home cannot be lived in by law, you’ve been taking into care or hospital, your home has been bought by compulsory order.
Click here to apply for council tax exemption
Depending on your circumstances you may be able to get:
Your first step is to check if you’re already getting a council tax discount. Check your bill or contact your local council. If you’re not already getting a discount you may still be entitled to one. Read on to find out what you may be entitled to.
If you either live on your own or everyone else in your home is disregarded you can apply for a single person council tax reduction of 25%. While if everyone in your household is disregarded you’ll get a 50% discount off your bills.
If you’re not sure whether you can get a single person council tax reduction or who is responsible for paying, contact your local council.
Most councils do not give a discount on second homes. In fact you could pay significantly more council tax on second homes depending on where you live. Read our guide Second home council tax explained. However, there are some exceptions to this, for example, a number of councils will give a 50% discount on second home council tax if the council tax payer must live elsewhere in job-related accommodation because of the terms of their employment, for example a caretaker.
Keep up to date with council tax changes with our weekly newsletter.
You could be eligible for a Council Tax Reduction, sometimes called Council Tax Support, if you’re on a low income, you have disabilities or claim benefits. Your bill could be reduced by up to 100%.
But any council tax reduction you get depends on a number of factors:
So for example, if you’re asking ‘do you have to pay council tax if you’re on benefits?’ the answer is, it depends. Also, you can apply whether you own your home or you rent, or you’re unemployed or are working.
Contact your local council to check if you are eligible
You’ll need to apply to your local council for a council tax reduction. This is usually done by completing a form or applying online however some councils may let you apply by telephone. If you live with a partner, only one of you needs to apply and you’ll get a discount on your bill if you’re eligible.
If you’re eligible for a council tax reduction, apply as soon as you can. And you can apply early if you know you’re going to be eligible; you can apply for it up to 8 weeks before you become responsible for paying council tax, such as if you’re moving into a new home. By applying early, in theory you’ll have less time to wait to get council tax reduction when you become eligible.
While if you’re already paying council tax, you can apply for council tax reduction up to 13 weeks before you’ll become eligible for it, for example if you have found out you’re being made redundant.
If you’re already eligible for council tax reduction when you apply you might be able to get it backdated, contact your local council about this if this applies to you.
With council tax reduction for pensioners, how it’s worked out will depend whether you fall under ‘working age rules’ or ‘pension age rules’. If you’re under the State Pension age, the working age rules apply. However, working age rules still apply if you’ve reached State Pension age and you or your partner get Universal Credit, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA) or Income Support.
However, if you’re reached State Pension age and don’t receive any of these benefits, pension age rules apply. The pension age CTR rules are usually more generous than the working age CTR rules.
Second Adult Rebate, also known as ‘Alternative maximum Council Tax Support/Reduction’, can reduce your council tax bill if you’re the only person in your home liable to pay council tax but you have another adult living in your home who:
While Council Tax Reduction is based on your income and capital (such as your savings), Second Adult Rebate is based on the income of the adult living with you. So you may be entitled to Second Adult Rebate even if you’re not entitled to Council Tax Reduction. However, if you’re entitled to both, you’ll be awarded the higher of the two.
If you’re suffering exception hardship for reasons out of your control like losing your job you may qualify for hardship relief; this will reduce your council tax bill temporarily. To qualify you may need to show evidence like having no savings and your income being less than your outgoings. Contact your local council to find out if you’re eligible; any discount will be given at its discretion.
And if you are struggling to pay your council tax, speak to your local council; you may for example be able to spread the payments across 12, rather than the usual 10 months.
If you or someone you live with is disabled you might be able to apply for a council tax discount or exemption.
You may be eligible for the Disabled Band Reduction scheme if you live in a bigger property than you’d need if you or someone else living there wasn’t disabled. To qualify, the property must be the main home of at least 1 disabled adult or child.
And if you qualify, your council tax bill will be reduced to the next council tax band down.
So if your home is in council tax band E, you’ll pay the council tax band D rate. While if your property is already in the lowest band of A, you’ll get a 17% discount on your council tax bill.
To qualify for the Disabled Band Reduction scheme you’ll have to show that you have either:
an extra bathroom, kitchen or other room that you need for the disabled person
extra space inside the property for using a wheelchair
To find out if you qualify, contact your local council. Some local councils ask for extra evidence – for example, a doctor’s letter.
You may able to apply for a council tax reduction if you or someone you live with is severely mentally impaired.
You’ll get a 100% discount if you qualify as severely mentally impaired and you live alone or any other adults in your home either qualify as severely mentally impaired or are full-time students.
While you’ll get a 50% discount on your council tax bill if everyone else in the house is ‘disregarded’
If you live with someone who’s severely mentally impaired, you’ll receive a 25% discount if there are no other adults in your household or everyone else in your home is disregarded.
If your bill doesn’t reflect a discount you were expecting, contact your council as soon as possible. But it’s also important to tell your council if you have mistakenly received a discount. Otherwise, you could be fined.
No. Unfortunately there isn’t a council tax reduction calculator to use as each council may have different rules on council tax reduction.
If you’re the only adult in your home you can apply for a single person council tax discount of 25%. If you’re looking for other ways to cut your bills, read our guide 14 ways to cut your gas bill.
Unless your property is exempt or you can get a council tax reduction of 100%, you can’t avoid paying council tax. If you’re buying a home there are lots of other costs to consider too, read our guide on The costs of buying and owning a property.
An extra home that’s connected to your home is called an annexe. And councils give a 50% council tax discount on an annexe within a main property, providing it’s used either by people who live in the main property or their immediate family members. However you won’t pay any council tax on the annexe if a dependent family member lives there. For more information read our guide Granny Annexes: Here’s what you need to know.
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