One in three got a council tax refund last year - how do you challenge your band?

Households in England and Wales that challenge their council tax band have a one in three chance of successfully securing lower bills for the future, according to new data.

The government's Valuation Office Agency (VOA) says of the 56,820 cases resolved in 2022-23, 16,110 successfully had their property moved to a lower council tax band. These people will now pay less and likely get a refund for the money they've overpaid.

Here, Which? digs deeper into the data and explains how you can apply for a council tax refund or reduction.

Increase in council tax challenges 

The number of people challenging their council tax band in 2022-23 rose by 2% compared with the previous year (50,300).

The proportion of cases that were successful in moving to a lower band was almost one in three (28%) - that's roughly the same as in 2021-22 when it was 29%.

However, not everyone was so lucky. In 2022-23, a total of 60 households saw their bills increase - although that represents just 0.1% of all appeals. The majority of cases (37,710) were unchanged.

These figures may end up being higher once outstanding challenges are resolved.

• Find out more: Council tax bands explained

How to query your council tax band

Bands are based on the value of your property in April 1991 if it's in England or Scotland, or April 2003 if it's in Wales. Northern Ireland uses the old system of ‘domestic rates’ which is based on the capital value of a property. 

The original valuation might have been wrong or changes could have been made to the property's use or size since its valuation which might alter the band it should sit in. For example, if the property has been converted into flats or part of it has been demolished since the original valuation.

Here are the steps you can take:

1. Check what your neighbours pay: if they have a similar property to yours, it's worth seeing if they are in a different band to you. You can also check the Valuation Office Agency (VOA) or Scottish Assessors Association websites to see what other similar properties pay in your area. But it's worth noting the VOA won’t use this as a good source of evidence if you ask them to review your band. 
2. Check your home's value: use the Nationwide House Price Index calculator to get a valuation for the relevant year (1991 or 2003) and check it matches up to the current banding. But bear in mind that the VOA won't use this as a good source of evidence if you ask it to review your band.
3. Contact the VOA: if you still think your property was incorrectly put in a higher council tax band to start with, you can request a review directly with the VOA or Scottish Assessors Association (SAA). 
4. Make an appeal: if you've made a formal challenge and you're rejected, you can appeal to the Valuation Tribunal for England or the Valuation Tribunal Wales. If you live in Scotland and the challenge cannot be resolved by your local assessor within six months, the dispute will then be referred to the Valuation Appeal Committee.

While the risk is very small, bear in mind that a change to the valuation of your home could push you into a higher tax band and, gulp, leave you with an even bigger bill.

• Find out more: How to get a council tax refund

Other ways to reduce council tax

If you don't think your property is in the wrong council tax band, there may be other ways to reduce your bills, depending on your circumstances and who you live with.

If you live alone, or with someone who isn't counted as having to pay council tax, you could get a 25% discount. Those who are disregarded for council tax include student nurses, full-time students, those under the age of 25 in approved training and members of visiting forces. 

Our guide to reducing your council tax bill provides more information.

These discounts are not applied automatically. If you think you're eligible, you must make an application for the discount and you'll usually have to provide proof.

What if you can't pay your bill?

If you can't afford your bill, contact your local council immediately. There are several ways it may be able to help, including rescheduling your payments, reducing your payments if you're on a low income or claiming benefits and offering 'hardship relief'.

Failing to pay your council tax bill can have serious consequences. If you don't pay after receiving a final notice, then councils can take legal action, including getting your employer to pay your unpaid council tax directly from your wages or sending in bailiffs. If everything else fails, then you can be taken to court and even face prison time.

• Find out more: paying council tax