Ministry for Cheapshots
Covert council tax rattles cages...
Council Tax. There is nothing quite as vile, feudal or primitive in the whole world. It has all the charm of a malignant brain tumour or a boot in the crotch and, unfortunately for us, it is a disease in which the symptoms are only concentrated around a select area of the planet known as 'the UK'. How lucky we are. Not even the scummy Communist nations have such a filthy pestilence. If claims made by the Liberal Democrats are to be believed, though, for some 70,000 homeowners it could be about to get a lot worse. By about £200 a year.
According to reports, the Government's Valuation Office Agency has been covertly monitoring the improvements and renovations that homeowners have made to their property since Labour came into power in 1997. Additions and extensions in the form of conservatories, porches, bedrooms, and bathrooms have all served to place at least a fifth of monitored houses into higher payment bands. Anybody who has bought a house since 1993 stands a chance of having had their council tax rates raised without even being told about it...
It all comes about due to the VOA being able to reevaluate any property that gets sold and decide whether or not the value is worth more than they have on their records. They keep details of every structural change, improvement and renovation. The Lib Dems have accused the government of operating by stealth:
"With almost 400,000 homes being revalued, Labour's lie of putting off council tax revaluation is clearly exposed," said Julia Goldsworthy, a local government spokesman. "Tens of thousands of families are being hit in the pocket. It's time that the Government came clean and either admitted that this stealth revaluation is taking place or recognised that council tax is not fit for purpose. Until they ditch this unfair and unpopular tax, families will continue to face unaffordable council tax bills based not on ability to pay but simply on the value of their homes."
Government spokespeople rebuffed the comments by saying that the value of property is unlikely to increase until a house is sold, and even then there's a slight chance that it will remain in the same tax band. Everybody knows that the Lib Dems are generally opposed to Council Tax so perhaps the revelation is just an attempt to swing the tides in their favour.
What are the chances of Gordon Brown being persuaded to put an end to the whole sorry situation? He could certainly use the friends...
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2 Comments
We all want to see the back of this wretched tax, a very unfair tax which based on property values means that it is not uniform across the country. When this tax was set up it was said that a revaluation should take place every seven years, but this Government has only carried out a rebanding and revaluation exercise in Wales. We like to think that the anger shown by protesters made the Government think twice. They have only promised that there will be no revaluation during this term of Government.
Below is a statement from the VOA which some may find interesting.
When a property is improved the VOA can not review its banding until the property is sold on. Quote from the website reads "When a property is improved (e.g. an extension is built), legislation prevents the VOA from increasing the existing band of that property until there is a “relevant transaction”.
The website continues to say "The term "relevant transaction" simply means that the property has been sold as a freehold, or a lease for a period of seven years or more has been granted or transferred (i.e. sold to another party). A freehold sale also covers the situation where a leasehold owner/occupier pays a ground rent to a landlord who owns the freehold of the property, and the freehold only is subsequently sold on or bought by the leasehold owner/occupier. A 'right to buy' purchase is also a "relevant transaction" which could lead to a band increase.
Please note that transfers between spouses on divorce or an Inheritance Tax transfer of a share are not relevant transactions and do not, therefore, trigger a review of the appropriate Council Tax Banding."
For full information on our policy regarding this topic I have attached a link here http://www.voa.gov.uk/council_tax/increases
Interesting rant, but factually inaccurate.
My council tax band was increased under this system in 1995, when the Conservatives were in power. Two extra bedrooms had been added by the person I bought the house from.
Also AFAIK, property taxes are found in most other countries, too, e.g. the USA. Not that I enjoy paying it or anything.