Our Guide on Granny Annexe Council Tax Rules

We’re frequently asked about Annexe Council Tax Rules – and whether or not this particular type of dwelling is liable for paying a bill. Prior to 2014, the simple answer would have been yes – with two Council Tax bills being levied on properties featuring an annexe. Now though, things are a little more complex – with various discounts or exemptions available depending on your circumstances. Our best advice is to check with your local authorities, but there are a number of general guidelines you can follow…

What is a Granny Annexe?

According to planning guidance notes, granny annexes are defined as accommodation that’s ancillary to the main residence, and used for this purpose. It’s important to note, annexes are not considered separate to the main property, but rather as an additional living space within a single residence. It may connect with the primary residence through doorways, or it might be completely detached and accessed via a separate entrance… Either way, it’s still an annexe.

While granny annexes can vary in size or shape, they tend to all have the following features:

  1. Construct has been built or adapted for use as separate living accommodation

  2. It features its own cooking, toilet and washing facilities for independent living

  3. It has its own entrance – which may or may not connect to the main property

By law, any building – or part of a building, that has been constructed or refurbished for use as some form of alternative living accommodation, must be separately banded for Council Tax. 

Council Tax Bill Discounts

Since the government scrapped the ‘unfair surcharge’ levied on annexes back in 2014, there are various ways that households can benefit from a 50% discount on their bill. The rules can vary, but you’re likely eligible for this discount so long as one of the following criteria are met:

  1. The annexe forms part of a single property that includes at least one other dwelling

  2. The annexe is used as part of the main house by the person liable to pay council tax

  3. The annexe is inhabited by a non-dependant relative of the owner of the main house

This means that so long as your annexe is not being used for living purposes, or is only used to accommodate family members of the main dwelling, you will not have to pay council tax in full. This only applies to the annexe – and the main house will still have to pay their entire bill.

Council Tax Bill Exemptions

Alternatively, you may also be entitled to exemption from Council Tax – meaning those living in the annexe would not receive a bill to pay. A granny annexe will be exempt from Council Tax charge so long as it is occupied by a dependent relative of the household as their main – or only, home. Family members are classed as dependent when any of the following applies:

  1. They are over the age of 65

  2. They are substantially or permanently disabled

  3. They are severely mentally impaired

Annexes will also be exempt from Council Tax when they are unoccupied, and cannot be let separately from the main property without a breach of planning permission. This means that garden annexes – which do not have the facilities for independent living, will not have to pay any Council Tax. Furthermore, if it’s an annexe occupied by full-time students, or any relative under the age of 18, then they will also be exempt from paying any Council Tax for the build.

Annexe council tax rules exemptions

Applying for Discounts and Exemptions

To find out if you qualify for a Council Tax discount or exemption, you’ll need to contact your local authorities to determine the rules in your area. You’ll be required to provide the council tax account number found on your bill, as well as any other relevant information they require.

Trust in the Granny Annexe Professionals

Whether it’s self-contained accommodation for an elderly relative – or just a little extra space for the family, we can help turn your dreams into reality. We build annexes with high-quality, eco-friendly and energy-efficient materials – providing you with all the essentials you’ll need.
From questions on council tax to concerns about planning permission, we’re always happy to share our expertise. Why not get in touch with our devoted team today for more information?