How to beat a 4.4pc rise in council tax payments

It is an accident of history we have eight council tax bands in England and nine in Wales, based on property values for April 1991 in England and April 2003 in Wales.

There were insufficient resources at the time to produce detailed valuations. Agents frequently drove slowly along the road with a colleague noting down valuations without even stopping the car. These rough-and-ready “second gear valuations” inevitably gave rise to anomalies, many of which have stuck to the present day.

With the average Band D council tax bill set to rise by 4.4pc in the next tax year, many people are eager to cut their costs. But there could be a sting in the tail if you do so. You are entitled to have your band reassessed by making an application to the council within six months of buying the property by asking the Valuation Office Agency to review the position. You can also do this if significant changes have been made to the property since it was last assessed.

This is not without risk because the VOA may decide your property should be in a higher band. If you live in a street with similar properties this could trigger a revaluation for all your neighbours which would not make you popular.

Because of the risks you should do some preparation. Check your band with the neighbours before asking the Valuation Office Agency. If you bought after 1991 start with that number. With older purchases, estimate the current value of your home. You can search property websites such as Rightmove or Zoopla to find recent selling prices in your area. You should work back to the 1991 value (2003 for Wales) by using the tables available through Nationwide or the Land Registry websites.

Remember improvements made after 1991, such as an extension or loft conversion, will still add to the value used to assess your band. Finally, check which band would have applied in 1991. If you are confident that your band is too high you can follow the procedure above and cut your bills.