Martin Lewis shared the inspiring story of a couple who challenged their Council Tax valuation band and received an impressive refund from their local authority for £6,753.
Not only did Elaine and Phil receive a hefty bit of cash, they also managed to get their valuation band lowered, something the couple from Lincolnshire decided to investigate after seeing Martin discuss it on a previous episode of The Money Show Live.
Elaine explained how it was Martin’s encouragement on that show that made her challenge their Council Tax band and prompted her to check online which band 25 similar properties were in.
Once she had collated all her ‘evidence’, she sent it off with a covering letter to the valuation office.
Elaine said: “When the post came we were absolutely elated, we managed to get the band lowered and had received a refund of £6,753 - I think we maybe even did a little dance. It was fantastic news.”
And Elaine hasn’t stopped there, since receiving the refund she has challenged energy usage, car insurance and home insurance to make sure she’s getting the best deal.
Martin also urged viewers to check the range of other Council Tax benefits: "There are a range of Council Tax discounts, so there's the single person's 25% discount, so if you live alone as an adult with children or full-time students you may be eligible for that.
"If you're on the Guaranteed Element of Pension Credit, there's a discount. If you have a severe mental impairment or know someone who does - which could be caused by a stroke or Alzheimer's, Parkinson's, or dementia, check that out.
"If you're on a low income, or have a disability there are Council Tax discounts - there are other ways to cut the cost of Council Tax for some people."
Below is a handy guide explaining all of these discounts and how to check and challenge your Council Tax band.
Council Tax band check
Martin first came up with the two Council Tax checks everyone should perform in 2007.
1. The neighbours check
This is where you have to compare your house to neighbours, in similar, or preferably identical properties, to see if you’re in a higher band.
You don’t have to ask your neighbours which Council tax band they’re on, just go to the Scottish Assessors Authority (SAA) website here, where you can see yours and your neighbours' addresses.
If that check shows you’re in too high a band, move to the next step, the ‘valuation check’.
2. The valuation check
This is where you have to work out what your house was worth in 1991 because that’s what decides the bands.
To do it, you’ve got to take a valuation of your house, or a similar house and then convert it back through a house calculator - there are free tools online that will do this for you.
There are eight Council Tax valuation bands in Scotland, from A to H. Band A is the lowest, while band H is the most expensive
The valuation Council Tax band ranges can be found on the SAA website here.
Band A - Up to £27,000
Band B - Over £27,000 and up to £35,000
Band C - Over £35,000 and up to £45,000
Band D - Over £45,000 and up to £58,000
Band E - Over £58,000 and up to £80,000
Band F - Over £80,000 and up to £106,000
Band G - Over £106,000 and up to £212,000
Band H - Over £212,000
Martin stressed how the next part of the checking process is the most important bit.
On the film Martin warned: “Only apply if both checks show you are in too high a band, if you only do the neighbours check and it shows you’re in too high a band it might actually mean your neighbour’s band is too low.
“You apply and their band goes up and that will not make you very popular.”
If you think you are paying too much, MomeySavingExpert.com has created a Council Tax check and challenge system here.
If you're in too high a band, you can reclaim past over-payments and get reductions in future from your local council.
If you’re on Universal Credit, benefits or low income, you could get up to 100 per cent off you bill
You can claim Council Tax support regardless of whether you own your own home or rent, or whether you’re working or unemployed.
Each local council is responsible for operating their own Council Tax support scheme, so the amounts of support given across the country may vary.
The amount you will get depends on many factors, including:
Which benefits you receive
Your age
Your income
Your savings
Who you live with
How much council tax you pay
You may get more Council Tax support if you receive a disability or carers benefit.
Find out what your local council is offering here.
Do you live with someone with a 'severe mental impairment'?
By law, to qualify, someone must be medically certified as being 'severely mentally impaired' – defined as having "a severe impairment of intelligence and social functioning (however caused) which appears to be permanent."
This could include Alzheimer's, Parkinson's, strokes and more and means they may be disregarded for Council Tax purposes if they live alone or get 25 per cent off if they live with one other adult.
Some councils also backdate this which could lead to thousands of pounds worth of refunds.
Live alone or with under-18s or carers? You can get 25% off and claim for past years
If you live alone
The full Council Tax is calculated assuming there are two or more people living in each home – if you live alone, you should apply to your local council for a discount. You could get a 25 per cent reduction, regardless of your financial circumstances.
If you live with someone under 18 or a student
Council Tax isn’t calculated on anyone aged under 18, full-time students, student nurses and some apprentices or trainees.
If you’re a carer
Carers who look after someone in the household for at least 35 hours per week and who meet additional criteria may be disregarded for council tax purposes, contact your local authority for their eligibility criteria.
Just be aware, this doesn’t apply if the person receiving care is the partner of the carer, or is the carer’s child aged under 18.
Disabled or caring for someone who is? You could drop a band
You may be able to get the band lowered if a room in the house is dedicated to equipment used by a disabled person on a daily basis.
On Pension Credit? You could get a reduction
If you receive the Guarantee Credit Part of Pension Credit you may even get your council tax paid in full. If you don’t have it, but are on a low income and have less than £16,000 in savings, you may still get some help - ask your local council.
To keep up to date with the latest Council Tax news and join our Money Saving Scotland Facebook group here, follow Record Money on Twitter here, or subscribe to our twice weekly newsletter here.
