Will I benefit from a residence tax reduction? How to claim the new £150 discount

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  • Many households wonder, will I benefit from a reimbursement of the housing tax? This follows a government announcement in February aimed at easing pressure on the rising cost of living.

    Chancellor Rishi Sunak announced a £9billion energy crisis relief package earlier this month. This included a council tax refund of £150 for those in the lowest tax brackets from A to D. “The council tax refund was seen as a relatively quick and easy way to get £150 for families to help with the huge cost increases. life,” says Sarah Coles, personal finance analyst at Hargreaves Lansdown. “It’s a useful start that will cushion the blow for a few months, but it won’t cover the extra cost of energy.”

    Millions of households are currently facing a triple whammy of price hikes as the cost of living rises at its fastest pace in thirty years. Thus, the reimbursement of the housing tax is a much appreciated discount. We explain what the refund is and if you will get it.

    Will I benefit from a residence tax reduction?

    Around twenty million households in England will benefit from a council tax refund of £150, which covers around 80% of households. Whether or not you receive this one-time payment will depend on your municipal tax bracket, which is based on the value of your home. Homes in the lower council tax brackets between A and D will all get the £150 rebate. Anyone with a second property, within these bands, cannot qualify and the council tax reduction is not payable on empty properties.

    Certain households in property bands A to D, where occupants do not pay the full rate of council tax, for example, houses where one person lives alone and receives a 25% reduction in council tax. housing, will also be eligible for the full £150 rebate.

    In Scotland, almost two million households will benefit from a £150 rebate, which, as in England, is payable for properties in municipal tax brackets A to D. It will also apply to houses in these brackets which lead to municipal tax reductions. .

    In Wales, properties in tranches A-D will receive a payment of £150. Those who are eligible for local tax reductions, regardless of their ownership bracket, are also eligible.

    How to claim £150 council tax refund

    There is no need to claim the £150 rebate, as in most cases households should receive the payment automatically. And you don’t need to pay it back. This is ‘free cash’ – unlike the £200 energy loan which will reduce the cost of our energy bills in October but must be repaid over the next five years. The council tax refund of £150 will be paid directly to you, rather than being deducted from your council tax bill.

    If you pay council tax by direct debit, the rebate should be credited to your bank account at some point in April, if you live in England and Scotland. If you are not paying by direct debit, in England local councils will contact you to arrange payment. In Scotland, the £150 will be a credit on council tax bills.

    The Welsh Government is currently working with local authorities on the reimbursement scheme and further details of how the money will be disbursed have yet to be announced.

    How to know your council tax bracket

    If you’re unsure which council tax bracket you’re in and whether you’ll qualify for the £150 rebate, there are two easy ways to find out. You can either dig up your latest council tax bill, which will contain details of your banding, or use a postcode checker tool. For properties in England and Wales you can check your tax bracket online and in Scotland go through the Scottish Assessors Association.

    Who is excluded from the discount?

    Households in the upper council tax brackets, ‘E to H’, are not eligible for the £150 rebate. However, the Chancellor said local authorities in England will receive a “discretionary fund of nearly £150million to help low-income households in the highest council tax brackets and households in AD brackets who are exempt from council tax.

    If you fall into one of these categories, it is worth contacting your local authority to find out about additional financial support.

    When it comes to homes in Scotland, Wales and Northern Ireland, those devolved governments are getting a £565million prize pool, as part of the council’s energy tax refund, which they can use in their own way for financial support.

    How to appeal a portion of council tax

    If you are on a higher (more expensive) council tax bracket than your neighbours, but the properties are of a similar size and design, you may have recourse against your tax bracket. You can start the process of challenging your municipal tax bracket through the Assessment Office Agency. It’s free to do so, regardless of the outcome. Before you jump in, it’s worth doing some detective work, especially since you may be asked to provide evidence.

    Check what band your neighbors are on. For properties in England this can be done through the government website and the Scottish Assessors Association for Scotland.

    You should also know the value of your property in 1991 when municipal tax brackets were set, which is easy to do using an online calculator like Nationwide’s House Price Calculator.

    Check this against the government’s advice on assessing council tax brackets and if it doesn’t match the one you’re currently on, you might have a case.

    Last year, more than 40,000 households disputed their housing tax bracket, according to the latest government figures. In one out of three cases, this resulted in lowering of the bands.

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