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Daily Mirror
Daily Mirror
Business
James Andrews

How thousands of people just got council tax discounts and even some big rebates

New figures show last year 11,910 people successfully challenged their council tax rating - seeing their bills drop and and them able to claim back money they'd overpaid in the past.

The better news is that might just be a drop in the ocean compared to the estimated 400,000 who are thought to be on the wrong band.

How did this happen? Well, it all comes back to the initial valuation of homes in the UK, back in 1993.

As Marin Lewis explained in March: "The main reason for this is after the poll tax debacle they were desperate to change the system in 1991 to get ready for the new council tax in 1993."

However, 25 years later homes are yet to be re-valued. People are still paying based on the "2nd gear valuations" carried out back then - where valuers would drive past houses in second to allocate bands for entire streets.

Except, that is, for homes in Wales where recent rebandings mean people escaped this problem.

The good news is that you are allowed to challenge your band - and it you win you can get thousands in overpaid tax back.

Martin pointed to one person who got thousands back in overpaid tax as a result of his appeal.

Your chances of success

What happened to the people who appealed last year (PA)

In the 2018/19 tax year 31% of the people asking for their band to be checked saw their bills fall as a result. That's up on 25% the year before.

In 61% of cases bills were left the same - meaning the people appealing didn't lose out, according to the Valuation Office Agency.

Overall, your chances of being left on the same or a lower band as a result of an appeal were 99.92% - although an incredibly unlucky 30 people did see bills rise.

Hargreaves Lansdown personal finance analyst Sarah Coles said: “It’s time to stop worrying about rising council tax bills, and join the fight to make sure you’re not overpaying.

"Because while the number of people prepared to challenge their bills is falling - those who do it are more likely to see their bills cut."

Getting the cash back

How to find out if you're owed too (PA)

There are some basic steps to getting your house re-valued.

First, find out what your neighbours are paying - you can do this online at voa.gov.uk .

Second, check what your house was worth in 1991 - when the bands were set.

To do this, take the current value and convert to 1991 prices using an online calculator.

Here are the bands as set in 1991 prices:

  • Band A - Up to and including £40,000
  • Band B - £40,001 - £52,000
  • Band C - £52,001 - £68,000
  • Band D - £68,001 - £88,000
  • Band E - £88,001 - £120,000
  • Band F - £120,001 - £160,000
  • Band G - £160,001 - £320,000
  • Band H - More than £320,000

If it falls into a different band to what you’re paying - apply for a re-valuation.

Only apply if both checks work - as you can only apply to have it revalued, not lowered, and there’s a chance yours could go up.

But that’s not the only way to get a council tax discount - there are several ways to pay less.

Firstly, single adults get 25% off.

This applies not just to single adults, but to parents living with children, people living with full time students and anyone living with someone with a severe mental impairment

Then there are council tax support credits - these apply to people with pension credits, on benefits or with low incomes.

You can also apply to get your band lowered for changes you've made, if you’ve adapted your house to help people with disabilities for example, you’re entitled to one band lower (even if in bottom band you get a discount).

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