Council Tax bands

All domestic property was valued in 1991 and put into one of eight bands, labelled A (the cheapest) to H (the most expensive).

In Wales there are nine bands, with I being the most expensive.

The bands for England, Scotland and Wales are set out below.

Council Tax bands for England, Scotland and Wales

Band	England	Scotland	Wales
A	up to £40,000	up to £27,000	up to £44,000
B	£40,001 to £52,000	£27,001 to £35,000	£44,001 to £65,000
C	£52,001 to £68,000	£35,001 to £45,000	£65,001 to £91,000
D	£68,001 to £88,000	£45,001 to £58,000	£91,001 to £123,000
E	£88,001 to £120,000	£58,001 to £80,000	£123,001 to £162,000
F	£120,001 to £160,000	£80,001 to £106,000	£162,001 to £223,000
G	£160,001 to £320,000	£106,001 to £212,000	£223,001 to £324,000
H	above £320,000	above £212,001	£324,001 to £424,000
I			above £424,001

Revaluation in Wales

In Wales all homes were revalued and put into nine new bands (A to I), based on house prices at 1 April 2003. These new bands have been used for calculating Council Tax from 1 April 2005.

If you have any questions about the rebanding in Wales you can call the Valuation Office Agency (VOA) helpline number 0845 600 1748. If you don’t agree with your new Council Tax band, you can appeal.

In England, the Government has postponed plans to revalue and reband all homes. At the time of publishing there are no plans to revalue homes in Scotland.

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Charges

Each council will set a standard Council Tax, based on the amount of money it needs to collect to balance its books. This standard Council Tax is the amount that homes in band D will be charged. Homes in bands A, B, and C will pay less and homes in bands E, F, G, and H (and I in Wales) will pay more.

The proportion of the standard council tax which is due in each band is shown below. The amount due for your band should be stated on your bill.

Band
A	two thirds standard tax (67%)
B	seven ninths standard tax (78%)
C	eight ninths standard tax (89%)
D	standard tax (100%)
E	one and two ninths standard tax (122%)
F	one and four ninths standard tax (144%)
G	one and two thirds standard tax (167%)
H	twice standard tax (200%)
Wales only:
I	two and one thirds standard tax (233%)

Valuation

Your Council Tax bill will show you which valuation band your property is in. If you think the band is wrong, then you may be able to appeal.

Many properties have a valuation which is different from the actual value today. This has happened because the valuers had to follow certain rules.

Some of these rules make the valuation higher than the real value:

• Property was valued as if it was for sale on the open market with no one living in it, so any tenants were ignored.
• Leasehold property was assumed to have 99 years left on the lease. So property with only a short period left on the lease will be worth less than its valuation.
• Any restrictive covenants (agreements which set out things owners are not allowed to do) were ignored. These might reduce the value of a property considerably if they limit what you can do to your home.
• It was assumed that the property was in good repair and order. So the reduction in value due to the poor condition of a property was ignored.

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Other rules make the valuation lower than the real value:

• No consideration was given to the value of any fixtures or fittings.
• Any potential development value was ignored.
  

One rule has caused more confusion than any other: each property was valued at the price it would have fetched on a particular date (1 April 2003 in Wales; 1 April 1991 in England and Scotland, including any changes made to the property up to 1 April 1993).

It is this value that determines which band your property is placed in. Property in most parts of Britain has changed in value since this valuation. So, many people will find that the actual value of their property is not the same as the ‘value’ given to it under the Council Tax valuation and banding scheme.

However, an out of date valuation does not mean that you will have to pay more Council Tax. The banding of properties is just a way of sharing out the Council Tax between local people. The council still has to raise the same amount of money. If all property has fallen by the same percentage, then revaluing at current prices would result in the tax being fixed at a higher level, so on average people would end up paying the same tax.

In Wales all properties have now been revalued, based on prices as at 1 April 2003. The Government has postponed plans to revalue and reband all homes in England.

Council Tax in areas where homes are generally more expensive, such as the south east of England, is generally higher than the tax in areas such as the north where homes are cheaper. This is because the Government has decided that councils with a high proportion of properties in the higher valuation bands will get a lower Government grant than areas with a high proportion of lower banded properties. So where more properties are in the higher bands, the average tax will be higher.

Once a dwelling has been put into a band, it will not be revalued as house prices fluctuate. However, it may be revalued if a substantial change is made to it that affects its value, such as extending or demolishing part of it.  If the change leads to a reduction in the band, then it takes place at once. If the change leads to an increase in the band, it will not take place until the property is sold or changes hands.

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Appeals

You can appeal about:

• whether or not a property should be on the valuation list
• if your property is a mix of domestic and business property, what the proportions are
• which valuation band your property is in.
  

Who you contact depends on what you are appealing about:

Appeals to the valuation office (assessor's department in Scotland)

You can appeal for your property to be rebanded if its value has changed because:

• part of it has been demolished
• it has been altered so that a disabled person can live in it
• the state of the local area has physically changed
• the value has increased because the lease has been extended by a previous owner.

For more information contact your local valuation office. You can find the address in your phone book or by visiting www.voa.gov.uk  In Scotland, ask your local council how to get in touch with the assessor’s office, or visit www.saa.gov.uk

Appeals to your local council

You can appeal to your local council if you think:

• Council Tax should not be due on your home at all
• the council is sending bills to the wrong person
• the council has not given you a discount that you should be entitled to: for example, if you are disabled.

Appeals can be complicated so try to get some help from a local advice agency such as your local Citizens Advice Bureau. Don’t stop paying your bill whilst waiting to hear about your appeal.

If you are living in Wales, your house will have been revalued and put into one of nine new bands. You can appeal if you believe that your house has been valued incorrectly and put into the wrong band. You should appeal before the end of September 2007 if you think your 2006 Council Tax banding was wrong.

Contact the Valuation Office Agency helpline on 0845 600 1748 for more information or write to:

Valuation Office Agency
Ty Rhodfa
Py Glas Road
Llanifhen
Cardiff CF14 5GR