How is Council Tax Calculated?
The Commissioners for Inland Revenue appoint a Listing Officer
for each billing authority and it is the duty of the Listing
Officer to prepare and maintain the valuation list for that
authority. The list must show an entry for each dwelling in the
authority's area, the valuation band for each dwelling, and other
consequential information. Preparation for a list starts in advance
of it coming in to force and the valuations are as at an earlier
date. This is known as the antecedent date and list that came into
force in April 1993 was based on values as at April 1991.
Valuation
Bands
The value is the amount the
dwelling might reasonably have been expected to realise if it had
been sold on the open market by a willing vendor on the 1st April
1991 based on
prescribed assumption. The bands in England
are for properties valued as follows:
|
Band
|
From
|
To
|
|
A
|
£0
|
£40,000
|
|
B
|
£40,001
|
£52,000
|
|
C
|
£52,001
|
£68,000
|
|
D
|
£68,001
|
£88,000
|
|
E
|
£88,001
|
£120,000
|
|
F
|
£120,001
|
£160,000
|
|
G
|
£160,001
|
£320,000
|
|
H
|
£320,001
|
+
|
Valuation Assumptions
In the case of a
composite property
the value of the dwelling shall be that portion of the amount that
can reasonably be attributed to domestic use of the dwelling. In
all other cases the assumptions are;
- Vacant possession
- Interest sold was freehold or a flat with a 99 year lease at a
nominal rent
- Sold free from any rent charge or other encumbrance;
- Layout/character of the dwelling and locality are as at the
relevant date
- The dwelling was in a state of reasonable repair
- The purchaser liable to contribute towards upkeep of common
parts.
- Fixtures for use by a physically disabled person not
included
- Use would be permanently restricted to a private dwelling
- No development value except that attributable to permitted
development
Alterations to the Valuation
List
An alteration to the valuation
list can only be made if one of the following circumstances has
occurred and the
effective date of a change is dependant on
the circumstances;
Proposals
The taxpayer, owner or
relevant person of a
dwelling, or the billing authority in whose area the dwelling is
located may, within prescribed
time limits, make a proposal to the listing
officer to alter the valuation list in the following
circumstances:
- The list shows a dwelling which ought not to be shown
- The list fails to show a dwelling which ought to be shown
- The list shows a valuation band other than that which should be
shown
- One or more relevant events has occurred; or
- Account has not been taken of a valuation tribunal or the High
Court decision
The listing officer may serve a
notice on the proposer within 4 weeks if he considers a proposal is
invalid. Within 4 weeks of receiving the notice the proposer may
serve another proposal or
appeal against the notice. A proposer may
withdraw his proposal providing he is still the taxpayer or
receives the consent of the new taxpayer and there are provisions
for the proposal to be
settled by agreement. Where a proposal is
not settled within 6 months the Listing Officer will submit the
proposal as an appeal to the Valuation Tribunal.
Settlement of a proposal by
agreement
A proposal to amend a valuation
list can be settled by agreement if the agreement is in writing and
signed by the listing officer, proposer, taxpayer and any other
person, including the billing authority, who indicates within three
months of receiving a copy of the proposal that they wish to be a
party to the proposal.
Right of Inspection
A person has extensive rights to
inspect a valuation list, a proposed new list, a list that has been
in force during the previous five years, or an outstanding proposal
to amend a list. They may make copies or, on payment of a
reasonable charge, require the person with the documents to supply
a copy. Where access is given in a non-documentary form the person
may make a transcript copy or require the person with control of
the information to supply a copy in documentary form. If access or
copies are not made without reasonable excuse the person with or
controlling a document shall be liable on summary conviction to a
fine not exceeding level 2 on the standard scale.
Effective date of an
Amendment
The effective date for a dwelling
included in the list for the first time is determined by the
completion
notice and when an existing entry is deleted the effective date
will be the day the relevant works commenced. Where an alteration
reflects a material increase in the value of a dwelling the
effective date for any band increase will be the date of the next
relevant transaction (ie the next date of sale of the property) or
the date of the next general Revaluation, whichever is earlier.
Where it is to reflect a material reduction it will be the day the
circumstances required the reduction.
Where an alteration refers to a
composite
property the effective date will be the day on which the
circumstances which caused the alteration arose and where an
amendment is as a result of an order made by a Valuation Tribunal the effective
date will be determined in accordance with the tribunal rules.
Where an alteration is made to correct an inaccuracy in a list on
the day it was compiled the effective date will be the day on which
the list became inaccurate.
Timing
of a proposal
No proposal in relation to an
entry that has been the subject of a Valuation Tribunal or High
Court decisions may be made until after the expiry
of six months after the decision was made. Subject to restrictions,
a person who becomes the taxpayer of a dwelling may make a proposal
for the alteration of that dwelling if he has not previously been
the taxpayer for that dwelling. The restrictions are:
- 6 months has expired since the person first became the
taxpayer
- The same facts have been considered by a Valuation Tribunal or
the High Court
- Either the new or immediately preceding taxpayer is a
subsidiary company of the other or of a common parent company
- The change of taxpayer is because of an amended partnership and
one of the partners was a partner in the previous partnership.