Martin Lewis urges homeowners to double-check council tax band with some owed thousands of pounds
Some people could be owed thousands of pounds based on their council tax band.
Martin Lewis urged his viewers to double check their council tax band on this week's episode of Martin Lewis Money Show Live. He highlighted that many council tax band may be inaccurate.
This is due to how council tax bands have been evaluated in England and Wales. If yours is wrong, you may be able to get some cash from the council, with some saying they got thousands back in a rebate.
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Martin said: "This is the key, in 1991, bands were stopgapped valuations, it was meant to be short-term. It was called second-gear valuations... that was how our council tax was valued and it has not been done again since then in England and Scotland which is why so many people may well be in the wrong band - 400,000 estimated."
Martin highlighted that there are two checks people can make to see if they're in the right council tax band. He adds: "The first check is the neighbours check."
In this case you should look for a neighbour near you with a near-identical home to compare your council tax bands, such as a similar number of bedrooms. You can then compare the bands by using the government's council tax band checker.
Martin added: "If you find you're in a higher band than your neighbour's similar or preferably identical properties, the next check...is the valuation check." In this check, you will see what the value of your house was in 1991 as that will have determined the council tax band the property is under.
You will then see what a similar house near you was sold for recently and then convert it to "1991 prices". Martin then issued a "big warning", stating to only do the following "if