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?

Recent Articles

Advice

Building an annexe garden living space – The customer journey

It’s a rare opportunity for people to design and build their own bespoke, brand-new home – unless you’re investing in an annexe for garden living that is. 

Annexes are chosen by countless property owners across the country, each of whom have their own unique requirements, vision, build journey, and end result.

Read More »

Quick Links

Featured Projects

nielsen annexes

Nielsen

At 93 years young, Jeanne has moved into her stunning new Annexe home, and the whole family are loving their new multigenerational living arrangement. Jeanne adores having her grandchildren over an...
granny annexe projects

Jenny Haughton

We recently visited the Haughton Family to see how garden annexe living was working out for them. It's safe to say they feel like it was the perfect choice. Watch the video below to hear their expe...
DCIM/102MEDIA/DJI_0478.JPG

Holbrook

Every annexe is designed around you, no iHus is alike. Find out how our customer Peter is getting along in his iHus 1 year on, and let him take you on a tour around his cosy annexe home on his Son ...
Gould Annexe

Gould

The Gould's moved from South Wales to Bournemouth, as they felt their 5 year old grandson was growing up quickly and they wanted to be involved with his day to day life. They are only 2 months into...
1

Esher

This 1 bedroom bespoke Annexe is home to a family from South Africa, their Annexe has enabled them to live in an area that they love close to their beloved family and grandchildren. Find out how th...
hamm

Wendy Hamm

In Autumn 2020 Wendy Hamm and her family approached iHus as they were contemplating an annexe build in their back garden to house Wendy’s mother. Wendy’s mother Jane, 82, was living over an hours d...
Load More

Download our iHus annexe brochure

Download our iHus annexe brochure

If you would like to download our annexe brochure, please complete the form below. You can also request for a hard copy to be posted to your home address. Have any further questions, why not request one of our team get in touch?

If you would like to download our annexe brochure, please complete the form below. You can also request for a hard copy to be posted to your home address. Have any further questions, why not request one of our team get in touch?






    Yes





    Talk to an expert

    Whether you’re looking to build a garden annexe, or just have a quick question, get in touch with us today and one of our friendly team will get back to you.





      Download our iHus annexe brochure

      If you would like to download our annexe brochure please complete the form below. You can also request for a copy to be posted to your home address. Have any further questions, why not request one of our team get in touch?






        Yes





        Get in touch with iHus

        If you want to speak to one of the team about how Multi-Generational Living can be achieved by building an annexe. Complete the form below.


          Is an Annexe right for you?

          Save time scrolling and speak with one of our annexe experts to find out if an annexe would work for you and your family.





            Book your Free Open Hus Visit

            If you would like to view an annexe show home, please complete the form below. Have any further questions, why not request one of our team get in touch?






              Yes





              Download our Annexe Financial Guide

              If you would like to download our annexe finance guide please complete the form below. Have any further questions, why not request one of our team get in touch?

              Download our iHus annexe brochure

              If you would like to download our annexe brochure please complete the form below. You call also request for a copy to be posted to your home address. Have any further questions, why not request one of our team get in touch?

              Download Your Free Annexe Brochure






                Yes