Reduce your Council Tax band? 

Council Tax bands in England have been in effect since 1 April 1993 and are allocated based on the value of homes on 1 April 1991.  Since 1993 there has been no widespread revision of the bands.

The taxpayer lived near the M61 Motorway, which was in existence in 1993 when Council Tax system was introduced.  Under Council Tax Regulations, the taxpayer demanded that his property should be put in a lower band on the basis that since the valuation band was first shown in the list, there had been "a material reduction in the value of the dwelling".

The taxpayer was refused but appealed to the local Valuation Tribunal.  The Tribunal held the increase in traffic using the M61 since 1993 could be a factor in changing the banding. The increase in noise and pollution could be treated as "a change in the physical state of the dwelling's locality" provided that the value of the property was affected as a result.

The Local Authority appealed to the High Court against the Tribunal's decision but was unsuccessful.  The Court held that the taxpayer should not have to pay more than the amount based upon the present value of his home.

It is thought that this High Court decision may well provide scope for Council Tax payers in England to demand that their property be placed in a lower council tax band - where there is evidence that the value of their property has decreased as a result of factors such as those mentioned above.

As roads become increasingly congested, we expect an increasing number of homes to be affected by noise and pollution.  Home owners may question whether their home's value has been adversely affected by these factors and whether they could propose that their Council Tax band be lowered.

The actual location of the property in this case and the extent of the increased use of a predominantly urban Motorway were clearly decisive.  Such factors will be important in assessing whether there is any real likelihood of securing the reduction in Council Tax.  Proof that property values have been materially reduced as a result is likely to be a key point.

Charlton-Merryweather v Hunt [2007]