How to challenge Welsh council tax bandings and claim back 'overpayments'

The Welsh Government is looking to shake up the council tax system in Wales so that the system is “fairer”. Essentially this means redistributing council tax burdens away from people in lower-value properties who are least able to afford it.

Critics of the current system say it’s outdated because the last revaluation of council tax bands in Wales was in April 2003. Since then, the difference in values between properties in the top and bottom band has risen to around 9.5-fold. Yet the difference in tax rates is just 3.5-fold.

In England, where houses were last valued in 1991, the system is even more outdated. Many valuations were done crudely and in some cases people ended up paying more than their neighbours despite living in near-identical properties.

The situation is better in Wales because properties were revalued in 2003, though you can still challenge your band with your council if you think it’s wrong. If you do this, it’s possible you may be shifted up a band rather than down. There’s more detail below on how to check if you’re in the right band - and what to do about it if you think you're not.

In Wales it’s more likely that some homeowners have simply been overcharged. It’s a similar story in England and Scotland: Freedom of Information data gathered by Martin Lewis’ Money Saving Expert team found that more than £150 million is owed to council taxpayers across 364 local authority areas in the three countries, affecting 862,000 households.

In Wales alone, £6.13 million was owed by local authorities by July 2022. Cardiff headed the list followed by Anglesey (Ynys Môn). Conwy Council owed the least. Local authority figures for North and Mid Wales are given below.

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People might be owed cash from their council for a number of reasons. But the most common one is when a homeowner has sold up and moved, having already paid part of the bill upfront. In some cases, councils can struggle to issue automatic refunds and these accounts are closed in credit. Some people simply forget to cancel council tax payments even after moving.

Usually these amount to one or two months of council tax payments. To check if you’re due a refund, you’ll need to speak to your council and provide evidence. A few offer online council tax refund forms.

Council overpayments - value of refunds owed (number of households owed)

North Wales

Anglesey Council: £815,397.93 (data unavailable)
Wrexham Council: £275,181 (1,125)
Cyngor Gwynedd: £168,115.38 (834)
Denbighshire Council: £120,412.82 (586)
Powys Council: £107,905.60 (940)
Ceredigion Council: £56,238.56 (428)
Flintshire Council: £71,135.52 (383)
Conwy Council: £49,151.34 (299)

South Wales

Cardiff Council: £1,000,149.51 (5,000)
Rhondda Cynon Taf Council: £582,681.19 (3,760)
Swansea Council (2021): £586,500 (5,512)
Carmarthenshire Council: £382,070.64 (2,990)
Merthyr Tydfil Council: £381,447.93 (4,037)
Vale of Glamorgan Council (2021): £357,715.22 (2,110)
Monmouthshire Council (2021): £271,132.81 (1,250)
Newport Council: £166,222.85 (1,350)
Pembrokeshire Council: £159,958.73 (1,159)
Blaenau Gwent Council: £91,243.94 (1,248)
Bridgend Council: £191,821.65 (2,033)
Neath Port Talbot Council (2021): £111,692.03 (560)
Caerphilly Council: £102,069.21 (949)
Torfaen Council: £78,911.18 (1,140)

Unless indicated, these relate to 2020 figures, the most recent available.

Council tax reductions

Another common way people are overpaying is by not claiming discounts. Reductions of 25%-100% are possible for people living alone, single parents, at-home carers and those with certain medical conditions. Students and people on low incomes may also be eligible. You can find more about eligibility and reductions on your local council website.

As part of its revamp of the council tax system, the Welsh Government is re-examining its council tax reduction scheme. One aim is to make discounts automatic for people on universal credit. Some councils proactively ensure claimants get a reduction, others don’t, and people may be paying too much.

In Wales, non-payment of council tax is not a crime. “Struggling shouldn’t be a criminal offence,” finance minister Rebecca Evans told the Senedd this week as she laid out plans for reform of the council tax system. You can read more about the proposals here - and which tax band your house might fall in.

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Checking and challenging your council tax band

Check your current council tax band on the Valuation Office Agency (VOA) website for England and Wales.
Compare your band with similar properties in your neighbourhood. If you find that similar properties are in a lower band, you may have grounds for a challenge. This is probably the most important step.
Research the historical value of your property around the time the bands were set (1991 in England and Scotland, 2003 in Wales). This can be done through local estate agents or online property valuation tools.
Websites like Zoopla and Rightmove offer free historic sales price information. Enter your street name and it’ll tell you the prices of all properties sold there since 2000. In Wales, this should suffice, but if you want to go back further in time, this can be done via the Nationwide House Price Calculator.
Compare the property’s 2003 value with council tax band tables in 2003. The table for Wales is here. If it looks like you were put in the wrong band, contact the VOA to discuss your concerns.
If you’re not satisfied with the response, you can formally challenge your band and ask for a reassessment. This process is free and can be done via the Gov.uk website. The UK Government said it will only review bands if “strong supporting evidence” is provided.