If you’re considering adding a granny annexe to your property or already have one, understanding how council tax applies is crucial. After all, nobody wants to pay more tax than they need to! Annexes have special rules that apply only to this specific type of building in specific cases. This helpful guide will walk you through the ins and outs of granny annexe council tax in the UK. With a few minutes you’ll easily be able to understand the rules and any potential savings!

Table of contents: What is a granny annexe?  How does council tax work for granny annexes? Conditions for council tax exemptions and reductions How to apply for council tax exemption or reduction FAQ

What is a granny annexe? 

A granny annexe, also known as a self-contained annexe, is a separate living space that is usually attached to or located on the same property as the main house. Granny annexes get their name from the fact that they are often used to house elderly relatives or family members. This is a great way to provide independent and dignified living to people while enabling them to remain close to family.

In the photos above: Summerhouse24 granny annexe

How does council tax work for granny annexes in the UK?

Council tax for granny annexes can be complex, as it depends on various factors. Generally, a self-contained annexe may be eligible for its own council tax rating, separate from the main house. However, the annexe needs to meet certain criteria:

1. The annexe has to be able to be used as separate living accommodation.
2. It should be a self-contained unit and not be spread across different parts of the main property.
3. The annexe usually needs to include areas for living, sleeping, food preparation, and washing, along with its own WC.

Conditions for council tax exemptions and reductions

Depending on your conditions, your annexe may be eligible for a full council tax exemption or partial reduction of 50% or 75%. Check for conditions and eligibility below.

Full exemption

You may be eligible for a full council tax exemption if you’re housing a relative who is:

• Aged 65 or over
• Severely mentally impaired
• Substantially and permanently disabled

50% reduction

A 50% reduction in council tax may apply if:

• The annexe is used by the occupier of the main house
• It’s lived in by a relative (not meeting the full exemption criteria)

Additional 25% discount

An extra 25% discount might be available for sole occupiers, such as an adult child living in the annexe.

Unoccupied annexes

If the annexe is unoccupied and planning regulations prevent it from being leased separately from the main dwelling, you may be eligible for a discount.

How to apply for council tax exemption or reduction?

Here is a short step-by-step explanation of how to apply for a council tax exemption or reduction:

1. Contact your local council: Reach out to your Local Authority for specific guidelines and application procedures.
2. Provide necessary documentation: This may include proof of relationship, age, or medical conditions for dependent relatives.
3. Complete the application form: Fill out the required forms provided by your council.
4. Submit and wait for assessment: Your council will review your application and inform you of their decision.

Frequently asked questions about Granny Annexe

Do you need planning permission for a granny annexe?

In most cases you need planning permission, though it may also be possible to build a granny annexe without planning permission as a ‘caravan’ – for this, it needs to meet certain criteria. You can read more about granny annexe planning permission here.

Do you have to pay council tax on a granny annexe?

It depends on the specific circumstances. You may be exempt, eligible for a reduction, or even required to pay full council tax. This depends on who occupies the annexe and how it’s used.

Are rules about granny annexe council tax different by council?

Yes, while there are national guidelines, local councils are responsible for applying exemptions and discounts. Always check with your specific Local Authority for the most up-to-date and accurate information, as rules may be applied slightly differently.

What if my situation changes? 

If there are any changes to the occupancy or use of your granny annexe, inform your local council immediately as this may affect your council tax status.

Conclusion

Hopefully, you now have a good understanding of granny annexe council tax rules. If you’ve not built your annexe yet, make sure to read our granny annexe guide which covers everything from planning requirements to costs.

Understanding granny annexe council tax can save you money and ensure you’re complying with local regulations. Remember, while this guide aims to provide general information, it’s important to always check with your local council about the most up-to-date details that are relevant to your area.

Sources:

• https://www.bromley.gov.uk/council-tax/council-tax-discounts-exemptions/11 
• https://www.ealing.gov.uk/info/201260/empty_and_unoccupied_properties/2631/apply_for_an_exemption_for_an_unoccupied_annexe_due_to_a_planning_restriction_class_t