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Monday 8th September 2008
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THURSDAY 31ST MARCH 2005
 UK HOMES REVALUED FOR COUNCIL TAX

The revaluation of every home in England is due to begin. The revaluation will be used to calculate new council tax payments from 2007 and the valuations will be revealed in September this year.

Revaluation does not mean that individuals will pay more council tax just because their house has gone up in value – it will depend largely on how much their property has increased in value compared to the average.

Following a recent revaluation in Wales, 60% of houses stayed in the same bracket but close to a third increased a band.

The government says revaluation is needed to keep property values up to date, and to avoid the council tax system becoming increasingly out of touch with actual property prices. Currently council tax is based on 1991 property values when the average house price was £73,000. It is now more than £190,000.

The 2007 revaluation will update the basis of council tax using 2005 values.

All the main political parties are using council tax in their campaigns. Yesterday the Liberal Democrats used the 15th anniversary of the poll tax riots to launch their idea of scrapping council tax to be replaced with a local income tax.

The Conservatives have said they would offer households where all adults are aged over 65 a rebate covering up to half of their bill, up to £500.

And Labour, who says the revaluation is not about raising more money, says it would reform the council tax if re-elected. In his recent Budget, Chancellor Gordon Brown offered a one-off £200 refund to pensioners.


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