Stockton-on-Tees Borough Council

Band Increase

Major home improvements, like adding an extension, can increase the capital value of a property so that a higher council tax banding could be justified. However, when council tax was first introduced in 1993, it was decided that the council tax band on an improved property would not be increased until there was a revaluation or a 'relevant transaction'.

The term 'relevant transaction' simply means that the freehold or leasehold interest has been sold.

Information relevant to this process that may lead to an increase in banding reaches the Valuation Office Agency from two main sources:

• The Council Tax Office team send weekly schedules to the Valuation Office detailing improvements made to the property from the planning and building control processes; in addition details of new or demolished properties are also referred.
• Sales information generally from the purchaser's solicitor via the Inland Revenue Stamp office

On receipt of the sales details the Valuation Office check to see whether there is a record of any improvements to the property. If so they will then review the council tax band and if necessary alter the entry in the valuation list. They then send a schedule to the Council Tax Office advising of any changes and notify the taxpayer at the same time. Just because a property has been improved it does not necessarily mean that the banding will change as it depends upon the extent of the alterations and whether the property falls towards the top or the bottom of its current band.