Council Tax 2 - Jumping to Higher Band - Anomalies

There has not been a council tax "revaluation" for yoinks. So unless there is a council tax revaluation most houses and flats will retain their present banding for council tax hereafter. Also, even if the owner-occupier improves the property and this results in a capital value (at 1991 capital values) greater than the top figure of the present band, it will not normally result in more council tax being paid.

There is one exception to this rule. If the owner improves and sells later the new owner will find that the Valuation Office Agency (VOA) will want to establish the appropriate banding for the improved dwelling. If it moves to a highter banding more council tax becomes payable.

There may be exception to this rule! If a person buys a substantial vacant property already converted into say, five flats which are each at Band H (in England) Each is worth £1 million. He/she then converts the property into a single dweelling worth say £15 millions. The band remains at Band H.

The outcome is that the local authorities, police authority and fire and rescue services have all lost council tax from that property site. If it is made up, the other poorer (perhaps) council tax payers make up most of the difference - to maintain revenues.