Granny Annexe Council Tax

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Granny Annexe in daughter's garden in Maidstone

Granny Annexe Council Tax

Do I have to pay council tax on my granny annexe? Is a question we are frequently asked. Prior to 2014 the answer would have been yes. But in 2014 the government scrapped the unfair surcharge on family annexes, where two Council Tax bills were being levied on the same home if it had a ‘granny annexe’ ‘granny flat’ or similar extension.

The move acknowledged the growing trend for three generations of one family to live in the same home. The government recognised it needed to help families support elderly relatives or adult children who couldn’t afford to buy their own property.

Eric Pickles said at the time “These common-sense tax cuts will increase the provision of affordable housing to those on lower and middle incomes. Encouraging extended families to stay together will reduce social care costs to the taxpayer and protect independence and dignity for the young and old.”

Granny Annexe Council Tax Discounts

The following information has been taken from the Dover County Council website. But most local authorities say the same, so if you are in any doubt please check with your local council.

Definition of an Annexe

An annexe is defined in planning guidance notes as:

Accommodation which is ancillary to the main residential dwelling and used for this purpose. It may be interconnecting within the property as a whole (for instance via doorways) or it may be accessed via a completely separate external entrance, but if it forms separate and additional accommodation for the main house, it will be viewed as an annexe.

When is an exemption possible?

Dependant relative living in an annexe

An annexe will be exempt (which means you don’t have to pay Council Tax) if it is separately banded for Council Tax but forms part of another property and a dependant relative is living in it as their main or only home.

A relative is classed as dependant if they are: 

  • over the age of 65
  • substantially or permanently disabled, or
  • severely mentally impaired.

Unoccupied annexe that can’t be let separately

An annexe will be exempt (which means you don’t have to pay Council Tax) if it:

  • is unoccupied (there is no-one living in it)
  • forms part of a single property, and
  • can’t be let separately from the property without a breach of planning control.

Annexe occupied by students or persons under the age of 18

An annexe occupied only by full-time students or people under the age of 18 will be exempt (which means you don’t have to pay Council Tax for the annexe).

When is a discount possible?

You may get a 50% discount on the Council Tax bill for an annexe if:

  • the annexe forms part of a single property which includes at least one other property; and
  • the annexe is being used as part of the main home by the person liable to pay Council Tax.

Discount for relatives living in an annexe

If you live in an annexe you may get a 50% discount on your Council Tax bill if you are a relative (not a dependant relative) of the person who is responsible for paying the Council Tax on the main property.

To get this discount, the annexe must:

  • form part of a single property; and
  • be occupied by a relative of the person who is liable to pay the Council Tax on the main property; and

be the main or only home of the person living in it.

Have you already got an annexe? Check if you’re due a council tax discount

Since the Government scrapped what it called the “unfair surcharge” on family annexes there are some families that may still be entitled to a discount. Don’t miss out, check what Martin Lewis has to say on the Money Saving Expert website. It makes an interesting read.

We have installed annexes all over the country, for more information please visit our granny annexe page. Alternatively, if you would like to receive example layouts and specification please fill in our Get a Quote page.

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