How to reduce your council tax by challenging it – 99.6% of bills fall or stay the same if people follow these steps

Hundreds of thousands of households could potentially reduce their council tax bill by requesting that their properties be placed in a lower band, Money Mail has revealed.

Those who suspect they are in the wrong tax bracket have little to lose by challenging it, as around a third are successful and end up paying less – while only one in 2,500 ends up paying more.

Households that could be successful are typically deterred from challenging their tax bracket because they fear the process is difficult and that they will end up paying more instead of less.

Unfortunately, the first part is true, as changing a municipal tax bracket can be an arduous task.

But the incredible success rate has been revealed to Money Mail and our sister website This is Money in official figures from a Freedom of Information Request.

Just ten homes – 0.04 per cent of households who had queries about their council tax band in the year to April 2023 – were moved into a higher tax band, according to data on properties in England and Wales from the Valuation Office Agency ( VOA).

This means that council tax has fallen or remained the same for 99.96 percent who objected to it.

The figure could be even lower, as VOA rounded the number up to the nearest ten.

By comparison, 8,430 (37 percent) of those who challenged their council tax bracket were moved to a lower tax bracket, although the majority (14,010 or 62 percent) remained in the same tax bracket.

Figures for other recent years have been similar, with only 0.13 percent of homes (20) moving to a higher level of council tax in 2021/2022 after an appeal, and 0.15 percent (20) paying more when they went into 2020 /2021 disputed their tax amount.

In recent weeks, most households have received their council tax bills for the coming year at a new, higher rate. Almost everyone will have seen an increase of 4.99 per cent, or an extra £104 per year for an average household.

The arrival of these shock laws will prompt thousands to challenge their council tax bracket. The VOA, which manages the council tax bands, sees an increase in these questions every April.

The VOA rejects all false claims to repeal council property tax, so you must have a genuine reason for wanting to change it.

When the current council tax system was introduced in 1991, every property in England and Wales was valued and placed into one of seven council tax bands.

Band A was for properties worth less than £40,000 whose owners would pay the lowest level of council tax; while Band H was for properties valued at £320,000 or more, with owners paying the highest level.

These tires are still used today.

However, the process was flawed at the time, with many appraisals simply assessed based on the appearance of a building rather than on careful research into its market value.

No less than 33 years later, the municipal tax brackets have still never had a large-scale overview. Instead, households can contest their home if they believe their home was overvalued in 1991.

Owners who challenged their council tax bands in the North West and Yorkshire and the Humber were among the most successful in 2023, with 42.9 per cent and 41.9 per cent respectively seeing their tax band fall.

Households in the Midlands and London were among the least successful; 25.8 and 32 percent won their matches respectively.

But if your challenge proves unsuccessful and you are moved to a higher band, you may face angry neighbors and higher bills.

That’s because when you apply for a council tax band from VOA, you need to provide examples of similar properties in the same area that pay less than you.

If the VOA decides that you are actually paying the correct amount of tax, it may decide that other local properties must also pay more.

This has led to cases where one property on a street has challenged a council tax band, resulting in all other houses in the road being upgraded.

In 2015, residents of Lynton Avenue in Hull ended up paying £160 a year more in council tax after a homeowner made a failed attempt to downgrade their property.

This is how you can dispute your municipal tax bracket:

See how your home is performing

Ask neighbors in a similar home which council tax bracket they fall into. If they are in a lower tax bracket, it increases the likelihood that you should do the same.

Alternatively, if you don’t want to ask your neighbors, you can check their council tax bands, or in fact property registration in England or Wales, using the VOA’s online tool at gov.uk/council -tax-bands.

If you live in Scotland you can use the Scottish Assessors Association (SAA) at saa.gov.uk/ instead.

Go back in time to check the value

The next step is to find out what your house was worth in 1991, when council tax bands were set.

Unless your home has previously been revalued for council tax, nothing has changed since then.

This is often easiest to work out online, using websites such as Rightmove, which record historical sales prices from 1995 onwards.

If you bought your home after 1991 but before 1995, you may be able to find out its value by looking up home listings from that time in newspaper archives.

Research the 1991 council tax bands

Then check which municipal tax bracket your home should have fallen into in 1991.

This can be done online at gov.uk/guidance/understand-how-council-tax-bands-are-assessed.

If your property appears to be in too high a band, you may have a case to have it rebanded.

Submit your challenge with evidence

The fourth step is to request that your council tax band be reassessed. Think carefully about whether you want to continue.

Although it’s a small risk, there’s always a chance that your band will go up rather than down and your council taxes will increase.

In England and Wales you can make a case to the VOA online at gov.uk/challenge-council-tax-band. Alternatively, claimants can email ctinbox@voa.gov.uk or call 03000 501 501.

This is a complicated process and you will need to provide sufficient evidence to support your claim. You will also be asked to explain why you think your house is in the wrong band – and which band you think it should be in.

In Scotland this can all be done on the SAA website at saa.gov.uk/council-tax/council-tax-bands.

A spokesperson for Citizens Advice said: ‘If the VOA agrees to assess your band, they will write to you, usually within two months, to let you know their decision.

‘Please note that if your home is in band A, the lowest band, the VOA cannot lower it further.’

If you pass, you will probably pay €100 to €400 less in council tax each year. You should also get a refund for all the years you overpaid, retroactively from when you moved in.

These payouts could date back to 1993, when the tax came into effect, and could be worth thousands of pounds.