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Council Tax Rebanding on Renovated Property?
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About to complete renovation of a residential property that has gone from being a 1 bed to a 4 bed (though no increase to the actual property footprint - we have just created an upper floor). We are about to let it and agent is asking for its tax band (currently D) is it up to me to volunteer the fact that it is now a larger property and get it re-banded or can my tennent pay the current amount?
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No best answer has yet been selected by Finwoodhill. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.If it was me I would inform the Council and get them to come and have a look before I let it. I wouldn't want to get my tenant into bother. Nor would I want to pay years of back CT. But then I'm a fairly honest sort of person.
But whether you actually HAVE to inform them of any changes you have made then I'm not sure and a quick search didn't help.
But whether you actually HAVE to inform them of any changes you have made then I'm not sure and a quick search didn't help.
Look ..
CT is all to do with value of building .. No-one would argue that a property would go up in value when a couple of bedrooms are created inside an original area.
If you had planning in .. and it was inspected, they would inform you that the value had increased and change the banding accordingly.
Otherwise, you are under NO obligation to inform them .. or even say anything about it.
There has been a movement to do a national reband .. but with cash-strapped councils .. don't hold your breath!
They cannot apply ANY banding charge retrospectively .. they can only charge a new banding figure once a property is in it.
My tip is .. Keep quiet about it .. until informed by them .. and that will only happen if you had planning in for the changes. Your tenant(s) pay the current banding
CT is all to do with value of building .. No-one would argue that a property would go up in value when a couple of bedrooms are created inside an original area.
If you had planning in .. and it was inspected, they would inform you that the value had increased and change the banding accordingly.
Otherwise, you are under NO obligation to inform them .. or even say anything about it.
There has been a movement to do a national reband .. but with cash-strapped councils .. don't hold your breath!
They cannot apply ANY banding charge retrospectively .. they can only charge a new banding figure once a property is in it.
My tip is .. Keep quiet about it .. until informed by them .. and that will only happen if you had planning in for the changes. Your tenant(s) pay the current banding
If you have informed Building Control -which you have to do it you have made any major changes - then the council will already know about the renovation. If not, then you should inform the council, because if you don't they are bound to find out sooner or later and then you may incur problems! When I renovated a house, the new banding was not applied immediately, only when the house was sold. I don't know whether the situation has changed since, or whether it is different when you are renting, but I suspect the agent should know the rules.
Thanks everyone - it's in a village near Warwick, (quite a big building, but only originally with a mezanine floor/balcony bedroom) It has gone through planning and been inspected regularly at each stage so the council are definately aware. I expect (hope!) it will only be re-banded if/when I sell it.
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