MAKING the most of your existing home can be more environmentally sensitive than building anew, but expect no sympathy in your council tax valuation. Improvements of all kinds can lead to increased liablity and, despite the publication of a report on council tax by Sir Michael Lyons on Budget day, there is little hope of sweeping reform. Meanwhile, the latest figures show proposed increases of 5 per cent in areas as diverse as Cambridgeshire, Kent, Cumbria and Lancashire, even before any home improvements made have been evaluated.

Sir Michael had made various recommendations, from an increase in the savings limit for pensioners to the suggestion that councils should be allowed to charge for removing domestic waste. But the most significant reforms suggested — an increase in the number of tax bands and a revaluation of properties — have already been rejected by the Government.

The prospect of digital mapping for valuation purposes has been raised separately. That might lead to many more homeowners finding themselves with a taxable “annexe” when they thought what they had was a glorified shed (see above).

Phil Woolas, the Local Government Minister, said that a revaluation would not have a significant impact on the fairness of council tax relative to income, but that it would “cause significant disruption”. Changing the structure of council tax bands, Mr Woolas added, would not be possible until a revaluation had taken place, which is unlikely to be before 2011. Both of these reforms would fail to address ability to pay: many residents, for example, live in homes bought decades ago that are now worth a great deal, but who have very low income.

For now the status quo remains. Council tax bands will remain the same, based on property values of 1991 in England and 1993 in Wales.

Explore Property

• Buying & Selling

• New Homes

• Overseas

• Interiors

• Investment

• Gardens

• Cool In Your Code

• Specials

Times recommends

• Analysis: frustration for everyone - except investors
• Spanish property: why it's crunch time on the Costa del Sol
• Buy-to-let: professional investors cash in on the credit crunch