The Welsh Government has commissioned the Valuation Office Agency to revalue all of the nation’s properties.

This will permit the Government to ascertain a brand new system of council tax bands, reports WalesOnline.

At current, there are 9 tax bands in Wales, from A to I, that had been put in place primarily based on property values in April 2003.

The further tax band of Band I used to be added in April 2005 for the very best worth properties, for properties valued at £424,001 and above.

Wales is the one nation within the UK that has beforehand up to date its valuations since council tax was launched in 1993.

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Rates in England and Scotland are nonetheless primarily based on the 1991 evaluations for when the tax was arrange. People in Northern Ireland pay the equal of council tax by the charges system.

A report by the Institute for Fiscal Studies discovered home costs throughout Wales had elevated by 150 p.c from 2003 to 2022.

This means those that stay in properties which have gone up in worth by greater than the common since 2003 could also be paying much less council tax than they need to.

Those in properties whose worth has saved in keeping with the Wales common could also be paying greater than they need to.

The IFS described the current banding system in Wales as “out-of-date, regressive and distortionary”.

Legislation can be put in place in April 2025 setting out the adjustments to council tax with finance minister Rebecca Evans to stipulate how the brand new system will work later this 12 months.

The reevaluation will replace all properties’ tax band primarily based on property values at April 1, 2023.

The regulation states there have to be two years between the date of the brand new valuation record being launched and the adjustments to council tax being introduced in.

Ms Evans mentioned the present system is “regressive”. She mentioned: “It places a higher relative burden on those with lower wealth.

“And, even though our system is more up to date than elsewhere, it is still 20 years out of date.”

She assured the adjustments had been “not about raising a single penny more in overall revenue” however about making the system fairer.

But she admitted there can be “winners and losers” as some residents pay extra tax whereas others see their invoice lower.

The minister mentioned it was not the case that if the worth of an individual’s property has elevated, they are going to pay extra tax.

She defined: “What issues is the relative place of your private home throughout all properties in Wales, and in addition, in fact, any reductions and exemptions that you simply could be eligible for."

She said the Government is exploring if transitional arrangements will be needed as taxpayers move to the new system.

According to the Welsh Government website, people may be able to get a council tax discount if they are:

• Living in a low-income household
• Living alone
• A student
• Severely mentally impaired
• Disabled
• The property is empty.

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