Property taxes, bands and challenging them

Local property or council taxes are among the larger recurring household bills and among the least examined, despite containing several routes to reduction.

The discounts and exemptions

Which vary by jurisdiction and follow common patterns.

Single occupancy discounts, which are substantial and which are missed when a household composition changes and nobody informs the authority.

Student exemptions and disregards.

Disability-related reductions, where a property has been adapted or where a disabled person lives there — this is widely unclaimed.

Severe mental impairment disregards, which exist in several systems and are among the most under-claimed of all.

Exemptions for empty and unoccupied properties, and for properties left empty for specific reasons.

Reductions for people on low incomes or certain benefits.

Reductions for carers and for annexes occupied by relatives.

And discounts for properties occupied only by people under a certain age or in certain circumstances.

Backdating

The point that makes checking worthwhile.

Discounts and exemptions can frequently be backdated, sometimes for years, where the entitlement existed but was not claimed.

Which means a household that has been entitled to a single occupancy discount for several years without claiming it may receive a substantial refund.

Contacting the authority to ask is free and takes minutes.

Challenging the valuation or band

Where systems use banding or assessed values.

Valuations in several systems were set at a historic date and were sometimes done rapidly and inaccurately.

Comparing your assessment with similar neighbouring properties — information that is frequently publicly available — reveals inconsistencies.

Where a property appears to be assessed higher than comparable neighbours, a challenge is possible.

The processes are free and do not require a paid company, several of which charge substantial fees for something you can do yourself.

The caveat: in some systems a challenge can result in an increase as well as a decrease, and neighbouring properties may also be reassessed — which is worth understanding before proceeding.

The evidence to gather

For a challenge.

Assessments of similar properties nearby, which are generally publicly searchable.

Sale prices of similar properties at the relevant valuation date, where the system uses historic values.

Evidence of differences in size, type or condition.

Evidence of any change affecting the property, such as demolition of part of it or a material change in the area.

And documentation of any error in the recorded details, such as incorrect floor area or number of rooms.

Other property-related charges

Worth reviewing.

Service charges in leasehold or managed properties, which are challengeable in several jurisdictions through tribunals and which are rarely challenged despite frequent evidence of unreasonable costs.

Ground rent, which is regulated in some jurisdictions.

Water charges, where metering benefits some households substantially and where social tariffs exist.

Waste and drainage charges.

And any local levies, which sometimes carry exemptions.

When circumstances change

Where entitlements arise and lapse.

Someone moving out, which may create a single occupancy discount.

Someone moving in, which may end one.

A student joining or leaving the household.

A person becoming disabled or being diagnosed with a qualifying condition.

Income falling.

Bereavement, which affects both occupancy and, in some systems, exemptions for a period.

And a property becoming empty, which frequently carries either an exemption or, after a period, a premium.

Reporting changes promptly matters in both directions, since overpayment is refundable and underpayment is recoverable.

If you cannot pay

Where the position is serious.

Local property taxes are priority debts in most debt advice frameworks, since enforcement powers are substantial and can include enforcement agents and, in some systems, court action.

Missing an instalment frequently makes the full annual amount immediately payable in some systems, which escalates the situation rapidly.

Which means contacting the authority early, requesting a revised payment arrangement and applying for any reduction scheme is important.

Free debt advice services deal with these routinely and will negotiate.

And local welfare assistance and hardship funds exist in many areas.

The practical action

Twenty minutes.

Check the current bill for which discounts and exemptions are applied.

Check the full list of available discounts on the authority's website.

Check whether anyone in the household qualifies for a disregard.

Compare your band or assessment with neighbouring properties.

Apply for anything you are entitled to, asking for backdating.

And repeat whenever the household composition or circumstances change.

General information only, not financial or tax advice. Systems vary enormously by country — contact your local authority and a free advice service.