The Council Tax (Administration and Enforcement) Regulations 1992 (regulations 17-31) set out the way in which billing authorities must administer council tax bills and issue demand notices requiring payment. Regulation 31(4) provides that any amount of council tax overpaid shall be repaid to the taxpayer, or credited against subsequent liability of that person.
No limit is stated in the regulations regarding the period of back payment. However, when correcting an inaccuracy in a council tax valuation list, the extent to which an alteration can be backdated will depend on the circumstances of the case. No backdating can be before the date on which the dwelling first appeared in a valuation list.
A person who has overpaid council tax is entitled to have the overpayment refunded. There has been no decision to change this, nor to limit the liability of a local authority to make such refunds where practicable.