Do I Have To Pay Council Tax On A Granny Annexe?
We travel all over the UK every month seeing lots of lovely people, listening to their unique stories and helping families get back together when Mum, Dad (or both) decide that it’s time to live at the bottom of the garden in an annexe and enjoy being part of the family again.
It would seem that the UK is one of the few countries in the world, that sees this as some kind of new concept?
Multi-generation living is popular all over the world.
Considering we started this blog back in 2011 when open plan living was a relatively new concept, it’s safe to say that once the UK adopts the idea of something, we tend to love it!
We consider ourselves extremely lucky to be doing what we do, meeting all you lovely people and providing solutions that are usually a win / win for everyone concerned.
We know annexe living isn’t for everyone, some people come to the Grand Designs Live Shows and are literally horrified at the prospect of living that close to their Mum, Dad or in-laws!
And one of the burning questions we get asked all the time is about granny annexes and Council Tax.
This is the kind of information we get as one of our most frequently asked questions, but getting those finances straight when it comes to annexes is very important.
Do I Have To Pay Council Tax In A Granny Annex?
The Official Stance On Granny Annexes And Council Tax
In 2014 the Government scrapped what it called the “unfair surcharge” on family annexes, which saw two separate council tax bills levied on the same home if it had a ‘granny flat’, ‘granny annexe’ or similar extension.
The two dwellings were treated as separate dwellings, each requiring Council Tax to be paid under the relevant Council Tax Bands.
This was then quickly revised and as long as the annexe is in use by a family member or the main house owner, Council Tax is payable at the reduced rate of 50% of your banding.
As a lot of our annexes are for dependent relatives and elderly care you may be exempt from paying Council Tax completely if the annexe is your only main home.
For example on the Canterbury.gov.uk website it states:-
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 dependent relative is living in it as their main or only home.
A relative is classed as dependent if they are:
- over the age of 65
- substantially or permanently disabled, or
- severely mentally impaired.
You can find out more about annexes and Council Tax by clicking here or finding out from your Local Council.
Why My Own Mother Didn’t Pay Council Tax in Either Of Her Annexes
How can we be so sure?
Well, I’m glad you asked 😉
You see my own Mother lived “next door” to us for several years in an annexe extension to our home.
As she was 65 at the time, she was classed a dependent relative even though she was at that time as fit as a fiddle.
In the amazing twists and turns of life, she decided to move to a bungalow as she wanted to reduce her driving (the house was a little way out into the countryside) but after a few years she decided to up sticks again and live with my brother and his family in the garden, in an annexe.
Once again she was classed as a dependent relative so no Council Tax was due on the annexe.
Having had experience in both living in an attached annexe as it were and living in an annexe in the garden, I asked her which one she preferred?
She said, “the annexe at the bottom of the garden because she could always find peace and quiet whenever she needed to.”
So there you have a real life example to refer to and a reminder that annexe living can not only provide you and your loved ones with the peace of mind that they are safe, but so many people of that generation never want to be a burden to anyone and retain their independence.
Summary. (Pin me for future reference!) ....
- All annexes typically require that they are used by a family member. Most are built with elderly care in mind and therefore exempt from Council Tax.
- If the annexe owner is not classed as a dependent relative (and this might be because of disability too) then Council Tax is payable at 50%.
- We have a success rate of over 95% in obtaining planning permission for annexes throughout the UK.
As always we look forward to your thoughts and comments below or join in the conversation on our Facebook Page !
Use The Contact Us Page To Email Us With Your Enquiry
Pete Cossie, Contemporary Log Living UK
Must-Read Free Report!
"10 Big Mistakes Most People Make When Thinking About Buying A Granny Annexe"
My grandson aged 19 lives in an annexe at the bottom of his dad’s garden. He does not have a permanent job and has no savings. His dad has, so I have been informed, received his council tax bill and says his son (my grandson) has to pay £1,000.
Would my ex son-in-law be liable for this council tax bill whether the property (annexe) was lived in or not?
Hello Alan, thank you for the question. We’ve found different policies can vary from Council to Council however as it stands it would be worth challenging the Council Tax Bill as your Grandson is a dependent relative. As for an empty annexe, you would have to check with the relevant authority for your area but we believe if the property is not lived in there would be no council tax payable. Hope that helps!
Will we be required to pay Council Tax on a mobile lodge, in Scotland?
Hi Lorraine, sorry to say we don’t have any specific experience with Granny Annexe Council Tax in Scotland. It will be worth checking things out on your local council’s website to see if there is a policy on there. It’s more to do with who owns the main property, ownership, age & need rather than just being mobile. Good luck & sorry we couldn’t be more help!
hi i have a stable block about 20 meters from my dads house we have been living here for about 10 years we applied for a lawful development certificate but we were refused on the basis that we had no bills electric water tax etc i have reciepts of works carried out and sky bills for past 6 years but it was refused i have now sent it to appeal but the council want to class it as an annexe and i am saying it is independant do you know of any relevant case law or anything that i can use to strengthen my appeal statement. thanks Pav
Hello Pavan, you will need a Planning expert on your side to stand the best chance of winning an appeal. Contact this company and discuss what options you have, they are very experienced and will offer you excellent advice on what to do. https://plainview.co.uk/ Kind regards Diane
Hi there, we have an annexe with our property, the previous owner converted it. They never paid council tax on it and we didn’t for the first 2 years. For the last 3 years we have been paying council tax yet the planning consent was it was only to be used as part of the main house and not to be rented. after a fight we managed to get the 50% reduction but after speaking to VOA they said we shouldn’t be paying anything.
* unoccupied annexes unable to let separately without a breach of planning control under section 171A of the Town and Country Planning Act 1990(100% exemption).
Is this true ? The annexe does not have its own utility supply, the electric and water bills are on the main house.
If I shouldn’t be paying can I claim back what I have already paid ?
Thank you
Hi Symone from what you have said in your comment, we believe that 50% Council Tax is applicable for anyone living in an annexe who is not classed as a dependent relative (over 65 or disabled). If it is unoccupied (ie nobody living in it) we believe no council tax is payable. Unfortunately this varies from Council to Council, some have annexe policies, some don’t. In all cases you should not be paying more than 50% Council Tax when living in an annexe. And all annexes are considered ancillary buildings to the main house and share the electricity, water and sewerage with the main house as part of meeting the criteria for being classed as an annexe and not a separate dwelling. It would be worth checking any paperwork you have with regards to planning conditions for the existing annexe. These might detail what the annexe can and cannot be use for. Hope that helps!
Why are the council soooo controlling! If it’s our property with an annexe why do they get away with extortion by having THE CHEEK and AUDACITY to charge council tax of any kind on part of the property.
If it cannot be sold as a seperate entity, then why on earth do they think it allowable to charge a council tax on this.
This is a plain example of GOVERNMENT BULLYING AND EXTORTION ! WAKE UP!
We hear you Mark, it was deemed to be an “unfair tax” and then a reduced 50% Council Tax levy was brought in instead. Makes no sense to us either and we feel they should be more supportive of annexes in general than they are. Thanks for your viewpoint on it though.
Hi , we have built a 2 bed house separate from our main house but on the same plot . It will have its own address when finished . It was called an annexe on the planning application . Will we have to pay council tax on it and will we be able to sell it ?
Hello Clive, Thanks for your question. From what you’ve said in your comment it would be a yes to Council Tax unless you are classed as dependent relatives. With regards to selling the annexe separately very doubtful. Even though it might have it’s own address ie The Lodge or 166A etc it’s very unusual for an annexe to have it’s own post code. Check the conditions set out in your Planning Permission for the annexe as it is likely to state whether it can be sold separately or that it must remain pert of the main dwelling (which is one of the main reasons annexe applications are successful). Good luck & I hope all goes well for you! Kind regards Diane
We have a very large house in Wales (converted mill) and we have to pay two council tax bills. The bills refer to the ground floor as “Ground Floor Flat”. However, an internal stairway with a door at the top joins the top two floors of the house to the ground floor. The relatives that lived downstairs have died but the council still insist on two council tax bills. How is this right? Is there any way we can have this second bill removed. According to the council, it’s two properties because we have two kitchens. Help please.
Hi Claudia, we had the same issue when we had an annexe on a previous house even though one “kitchen” was a just a sink in an empty room. The only way to overcome the issue is to make the property one property again. Once we did that ourselves we ended up with a reduced banding for the whole house. Hope that helps! kind regards Diane
I am thinking of buying a house that has an extension and thus two C/Tax bills. Am I correct in what I am reading? If I say my extremely disabled son (25 years old but needs 24hr care) is living in it – Then I will not have to pay C/Tax on it – but if I declare I want to make it a part of the home – I will have to pay 50%? There will only be the two of us living there – but how does this make any sense? On the other hand, considering it will be considered separate property – would he not get C/Tax paid for and be entitled to the severe disability premium? They cannot say it is separate property and then still say a relative lives with him? Or can they?
Hello Claire, you need to check your situation with the Council in the area you are thinking of buying the house in before you can ascertain any Council tax liabilities as disability is not our area of expertise, we focus on elderly relative care in relation to granny annexes specifically. I’m 100% sure you will qualify for Council Tax relief in some way but dependent relatives as referred to in the article are classed as exempt from Council Tax when they are over 65 in our experience. An extension doesn’t qualify as a separate property in itself, in our own case there were 2 kitchens, one in the extension / annexe and one in the main house. It was therefore classed as two properties for Council Tax purposes when the Local Planning Authority visited it for assessment purposes. I’m sure you’ll find plenty of assistance with the relevant authority where you will be buying the house, and good luck in your new home, I hope it goes well for you both.