Successful challenges can net people thousands of pounds
Financial expert Martin Lewis has criticised a key part of the modern tax system that has ballooned in recent years and can affect the poorest households the most, Council Tax. Despite the tax being based on bad data, some of which was collected by two people driving around in second gear and guessing the value of each property, most homes are still taxed based on their value more than 30 years ago.
Money Saving Expert follower Joe McMorrow took to social media to thank Mr Lewis after he raised the issue again, saying: "My own happy ending thanks to you Martin on this topic, because when I challenged the rateable value of my house, I got a huge refund!How to challenge your Council Tax band Check what band your neighbours are in
Martin Lewis has said: "So the flawed old valuation still dictates much of the kingdom's banding, which is why you could be paying more than your neighbour even though you live in exactly the SAME size property. This may sound like a fairytale, but every word is true."Once you have checked the Council Tax bands of similar properties in your area, it is important that you establish an estimate for what your house could have been worth in 1991.
Once you have this information, you can calculate its value in 1991 using the Nationwide House Pricing calculator. There you enter the region the property is in, how much it is valued at and when it was valued. Where Martin Lewis advises against getting a reassessment is if your property value in 1991 appears to not match the band, but your neighbours do, as getting someone to value your property again could result in you paying more Council Tax. Equally, it is never worth challenging if neither yours or your neighbours properties showed any discrepancies.You can challenge your Council Tax band simply by sending a letter to your local council explaining why you believe your property is mis-valued.
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