Two authorities hold £738,000 in overpaid council tax

How much council tax you pay is determined by the band your house is in

Over £700,000 in overpaid council tax is being held by two councils.

Torfaen County Borough Council is holding almost £400,000 in payments, while Monmouthshire County Council is holding about £339,000.

The Welsh Local Government Association (WLGA) has advised taxpayers in these areas to check their bills to see if they have overpaid.

A typical band D council tax bill in Monmouthshire this year is £1,847 and is £1,802 in Torfaen.

The charge goes towards local services such as social care, education and rubbish collections.

The figures were obtained through a Freedom of Information Act request by the Local Democracy Reporting Service.

• Council in hot water over English-only sign policy

• Worry over 'weak performance' in secondary schools

• Don't rush into council tax changes, warn councils

Though there is no legal requirement for any council to notify individuals that they have overpaid, authorities will issue a closing bill or do so if there is a change in circumstance.

Council tax is usually paid over a period of 10 monthly instalments from April every year.

If there is any credit on a householder's account it should be "netted" off any new annual bill issued, meaning the over payment will count as payment towards that year's charge.

The WLGA, which represents all of Wales' 22 bill issuing authorities, said the lack of legal duty on councils to notify households means an individual has to make their claim within six years from when they learned the overpayment was made.

The overpaid cash sits in a council's general fund and the WLGA said councils will usually have a policy which allows them to keep it after a period.

A WLGA spokesperson added: "If the latest council tax bill advises of a credit contact the council to request a refund.   

"Simply enquire with the local authority providing as many details as possible in relation to the account/property the taxpayer is concerned about.

"Local authority records extend to 1993. Where a clear entitlement to the money exists councils would reverse the write back and refund."