Council tax - the changes

[DannyK]

Can anyone remind tell me what will happen when our homes are re-values for council tax?

Is it true that if you have got a shed/patio/extension or conservatory that you are likely to pay higher CT? If it is true - can someone explain how having a shed or patio will make any difference to the costs the councils pay out for - as I won't have any more rubbish, I won't use any more police etc, I won't use any more street lighting and so on and so on.

Thanks

[Kathyan]

It's just another way of raising the Council Tax! The tax is totally unfair and I think they should either go back to Poll tax (based on your ability to pay) or a local income tax. I don't agree that someone who lives alone should have to pay the same tax as a family of 6. We will soon be giving all our wages to the government and they will give us back a little to spend on ourselves!

[lady_p_gold]

I think you will find that the Council tax band will not rise until such time as the property changes hands and then it is re-graded if there have been improvements enough warrant that. Council tax bands are on the value of the property, not the services you use, and a conservatory or extension could make the property worth more.

[DannyK]

Hi again,

Thanks for the replies. I get confused with all this as the CT breakdown statement for 2006/7 that I have just got is purely for services, and whilst I can appreciate if I were to live in a 5 bed house the chances are that more people would live there etc, but I would still only get 1 bin collected a week, the same street-lighting etc. Water and other utilities are charged on usage accordingly. I don't understand the where the value of the house comes into it...?! I know they had to start somewhere but this whole idea of rebanding sue to extension, conservatory and patio business is nonsense surely?

Having said that - do we know they are definately going to be doing this or is it still a rumour?

[Ethel]

Your house can be re-valued at any time, especially if you have significant improvements such as an extension carried out.

Single people pay 25% less council tax automatically by the way.

In the budget it is clear that houses in England are going to be re-evaluated (it has already happened in Wales) in readiness for 2007 council tax bills.

The councils obviously cannot physically inspect each and every home, but they will look at those that have been given planning permission in recent years.

[buildersmate]

When the Council Tax came in, roving bands of valuers were commissioned to take a view of the valuations. They did it by taking windscreen tours of areas - not by individual inspection. One might expect the same sort of exercise again. It only impacts properties that are deemed to move across a valuation threshold from one band to another (could in theory be up OR down).

You might think that in theory for every 'loser' in the Council Tax payments lottery there should be a 'winner' (someone who gains) because the amount each Council needs to raise through the tax doesn't change - its the relative contribution paid by all the householders that changes. Oh no! If the amount raised through the tax increases, apparently central government will reduce the amount they contribute to the council to funding local services. If true, this is yet another of Gordon's stealth taxes.

[beaniedog]

i think it is outragious that i may have to pay more council tax than my neighbour. Before i BORROWED �60,000 to build an exension, both properties were the same. I now, due to very hard work and huge mortgage payments have a larger house than him. i also will only use the same services as him.........why bother trying to better yourself ...???