Thousands of households could be overpaying for their council tax simply by being in the wrong tax band. If you’re unknowingly in a higher band than what you should be then you could save thousands by challenging it.
Councils hiked council tax bills by as much as 5% this year and further rises are expected in 2025, so taking action now could save you more money.
A 5% increase might not seem like much, but adds over a hundred pounds to a band D home.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Here's how to check if you are on the correct council tax band and what to look out if you decide to challenge it with your local authority.
What council tax band am I in?
To find out which council tax band you’re paying:
- Check your council tax bill
- Ask your local authority
- Use the government website
The government website’s postcode checker allows you to check for properties in England and Wales, while the Scottish Assessors Association lets you check Scottish properties
To check your annual bill, you can go to your local authority website. Find your local authority by typing in your postcode.
How to check you are on the right council tax band
See what you neighbour's council tax band is
If your council tax differs from your neighbour's despite you having a similar property, it’s worth looking into it. You can check the council tax band of the properties on your street via the government's tool.
Check the value of your property
You'll need to work out what your property was worth in 1991, when the bands were set. You can use tools such as Nationwide’s House Price Calculator to figure out what the value of your home was three decades ago.
If you work out the calculations and find the value differs from the band you’re on, you might be able to challenge your council.
What can I do if I’m in the wrong council tax band?
If you think you’re in the wrong band, go to the Valuation Office Agency website.
The process is free but lengthy. You won’t pay a fee, no matter what the decision is. But you will be waiting up to 90 working days.
If the Valuation Office Agency finds you were on wrong council tax band, you can get a refund which will be backdated to when you moved into the property, or when the tax was introduced – whichever one is the most recent.
While it’s not very common, it’s worth keeping in mind your local authority could also find you’re paying less than what you should be and hike your bill, so double check your numbers before you challenge your council tax band.
What are the council tax bands?
Council tax bands range from A to H - the higher your band the more council tax you pay.
They are calculated based on the value of your home, but not the value you would be selling it for today. Instead, the bands are based on how much your property was worth over thirty years ago.
In England and Scotland, it would be how much your property was worth on 1 April 1991. In Wales, it’s 1 April 2003.
The band ranges differ per region, but these are the ones for England:
| Council tax band | UK average home value |
| Band A | Up to £40,000 |
| Band B | Over £40,000 and up to £52,000 |
| Band C | Over £52,000 and up to £68,000 |
| Band D | Over £68,000 and up to £88,000 |
| Band E | Over £88,000 and up to £120,000 |
| Band G | Over £160,000 and up to £320,000 |
| Band H | Over £320,000 |
-
Investing in a dangerous world: key takeaways from the MoneyWeek SummitIf you couldn’t get a ticket to MoneyWeek’s summit, here’s an overview of what you missed
-
Autumn in Crete, the Greek island of cultureMoneyWeek Travel Katie Monk reviews the InterContinental Crete, Grecotel LUXME White Palace and the adults-only Asterion Suites & Spa
-
Inheritance tax receipts hit £1.2bnNews More people are being hit by inheritance tax amid rising property prices - and 16m are unaware of whether or not their families could be left to pay a bill when they die.
-
Cut taxes? No, reform them insteadOpinion The way the state raises money is far too complicated, says Merryn Somerset Webb. Time for a radical revamp.
-
HMRC launches one week warning for tax credit renewalsNews Tax credit customers have until 31 July to submit renewals amid a scam warning from HMRC
-
Will IHT be cut?News Sunak could make cuts to Inheritance Tax cuts later this year, reports suggest. We explain what this could mean for you.
-
Checklist: 10 easy moves to save you money before the end of the 2023/24 tax yearTips The end of the 2023/24 tax year is fast approaching. We’ve put together an action plan so you can maximise valuable tax breaks and allowances before they disappear at midnight on 5 April
-
How to keep your dividends safe from the taxmanAdvice The number of people expected to pay dividend tax in 2024/25 has doubled since 2021/22. We look at ways to keep your dividends safe and beat the tax trap
-
Can I avoid IHT by stuffing all my money into a pension?Advice The ditching of the lifetime allowance could enable millions of pension savers to avoid inheritance tax. We explain how.
-
How to get a council tax reductionTips Council taxes have risen almost across the board, but some people can get a council tax reduction. We explain who can possibly get hundreds off their yearly bill
