Council Tax Arrears

[NormAlex1]

Hi , hope someone might help ,
We've lived in our large 5-bed, 3-storey house for 16 years. Whilst I was chasing up a Council Tax double-payment I made in January , I've discovered ( I think ) that our has been dr , astically 'under-banded' for all of these 16 years . We've always been in the lowest Band A , and that's what our annual Council Tax bill always says . I've never taken notice - we just pay the amount the Council asks for promptly each month . We've never been in arrears, and never had any other correspondence from our local Council .
However, after 16 years , I reckon we should have been Band G or H all this time , looking at the house valuations for each CT band.
Potentially , over 16 years, we've underpaid by maybe £30k . Before I approach the Council , I'm trying to find out if the Statute of Limitations says that the Council could only seek to recover the last 6 years worth of my potential CT debt .
Grateful for any advice ,
Thanks ,
NormAlex

[ploddertom]

Council Tax Bands were established in 1991 and have never increased since (except Wales). Band A at that time was for a property valued at £40k or less. I wouldn't beat yourself up about it, have a read of this:
https://www.gov.uk/challenge-council...your-challenge

[des8]

Hi and welcome

Assuming you are in England or Wales

Don't rush off to ask the council.
The banding is the responsibility of the Valuation Office Agency.
They set the band and you then pay the amount required by your council.
You haven't been underpaying, you are not in arrears
You are not responsible for their valuation

If you are on speaking terms with your neighbours and they are in similar properties, ask them what band they are in.
Or alternatively you could check on this website: https://www.gov.uk/council-tax-bands

[lgfa92]

Hi , hope someone might help ,
We've lived in our large 5-bed, 3-storey house for 16 years. Whilst I was chasing up a Council Tax double-payment I made in January , I've discovered ( I think ) that our has been dr , astically 'under-banded' for all of these 16 years . We've always been in the lowest Band A , and that's what our annual Council Tax bill always says . I've never taken notice - we just pay the amount the Council asks for promptly each month . We've never been in arrears, and never had any other correspondence from our local Council .
However, after 16 years , I reckon we should have been Band G or H all this time , looking at the house valuations for each CT band.
Potentially , over 16 years, we've underpaid by maybe £30k . Before I approach the Council , I'm trying to find out if the Statute of Limitations says that the Council could only seek to recover the last 6 years worth of my potential CT debt .
Grateful for any advice ,
Thanks ,
NormAlex

(Caveat is that my area of work is council tax legislation - I tend not to deal with the valuation side too much)

Assuming this is England ? If so,

I assume you bought in 2003 ? When was the property built ?

If there was a large amount of work undertaken after the band A was assigned, and there had been no sale following those works then a property could remain in Band A. Any property that was built with 5 bedrooms, or has been extended to 5 bedroom and sold since that extension, would never be a Band A on the open market value that has to be assumed when valuing.

The statue of limitations is not directly relevant here in as far as stopping the VOA backdating - The 6 years in s9 of the act would apply from the 'cause of action', i.e. the point at which they were aware there was an error etc. Once that 6 years period of awareness has started then they have that time to make the adjustment and notify the council of the adjustment. As soon as the council are aware of an increased band then the council tax charge can be backdated as far as is required to meet the VOA's adjustment - there is no limit to the actual charge being backdated within council tax legislation (the same as a discount or band reduction can be backdated as far as is required).

The regulations the VOA use will set the date from which any alteration will apply,

See below however;

The VOA manual tells you how they treat the banding issued - http://cti.voa.gov.uk/corporate/publ...g.html#P73_855

Para 2(1)

A valuation is required where:

1. A dwelling was omitted in error from the compiled list or its initial entry in the compiled list is thought to be incorrect.

Para 6(1) provides that the effective date to be used is,

REASON FOR VALUATION:

1. Dwelling was omitted in error from compiled list or its initial entry in the compiled list is thought to be incorrect.

When carrying out a valuation for either of these reasons all physical factors require consideration as they existed at 1 April 1993.

Therefore if a property was improved between 1 April 1991 and 1 April 1993 the question to be asked is, if this improvement had existed at 1 April 1991, for how much would the property have sold at that time?

• Effective date omission: date of omission 1 April 1993.
• Effective date error: date of schedule if increase, date of original entry if decrease.

and summarised again here
http://cti.voa.gov.uk/corporate/Publ...3.html#P73_959


As it would be an increase that was an error then they should only apply the increase from the date they update their records (the schedule date).

You can see a case where the original banding was an E in error and it was corrected to F (VOA said G but the tribunal settled on an F) - http://info.valuation-tribunals.gov.....htm&Decision=

[NormAlex1]

Thanks to LGFA2 , his assessment is helpful.
yes, it's England , and we bought the house in 6/2003 . It was built around 90 yrs ago.

When we bought it was in a poor state , but mostly cosmetic & decor. Structurally , it was and is sound .

Gradually , from 2003 and over the next decade, we redecorated, repaved , upgraded central heating , refurbed bathrooms . I cant imagine any improvements happened in the early 1990's, because of the state when we bought it in 2003 .

Interestingly , looking at neighbouring , similarly large houses in our road , there are quite a few others registered currently Band A . Next door , is pretty much a mirror of ours , but the Direct Gov CT record categorises that as Band C . I remember that this property was extensively modernised around 6/7 yrs ago by the then incoming purchasers .

It's all v confusing . I wish I was still blissfully ignorant , as in early January , but I can't now 'unknow' it & do want to deal properly with it .

Thanks ,

NormAlex1

[lgfa92]

Thanks to LGFA2 , his assessment is helpful.
yes, it's England , and we bought the house in 6/2003 . It was built around 90 yrs ago.

When we bought it was in a poor state , but mostly cosmetic & decor. Structurally , it was and is sound .

Gradually , from 2003 and over the next decade, we redecorated, repaved , upgraded central heating , refurbed bathrooms . I cant imagine any improvements happened in the early 1990's, because of the state when we bought it in 2003 .

Interestingly , looking at neighbouring , similarly large houses in our road , there are quite a few others registered currently Band A . Next door , is pretty much a mirror of ours , but the Direct Gov CT record categorises that as Band C . I remember that this property was extensively modernised around 6/7 yrs ago by the then incoming purchasers .

It's all v confusing . I wish I was still blissfully ignorant , as in early January , but I can't now 'unknow' it & do want to deal properly with it .

Thanks ,

NormAlex1

Like everything, it's easy if it's an area you know otherwise your stuck trying to figure it all out.