Annexes and Council Tax

Information on if your annexe is exempt, or qualifies for a discount and how to apply

What is an annexe?

For Council Tax purposes a self-contained unit means:

'a building, or part of a building, which has been constructed or adapted for use as separate living accommodation.’

Self-contained units within the grounds of a main property will be given a separate Council Tax band by the Valuation Office Agency (VOA) so that each unit can be assessed for Council Tax. If the self-contained unit is under a separate title deed to the main property it will not be classed as an annexe.

Further details on Council tax bands and self-contained units can be found on this VOA factsheet.

When is a discount possible?

An ‘Annexe Discount’ of 50% may apply if one of the following conditions are met:

• the annexe is used by the residents of the main property, for example as extra living space.
• the annexe is the main home of a relative of the Council Taxpayer of the main property.

A relative is defined within the regulations as a spouse, parent, child, grandparent, grandchild, brother, sister, uncle, aunt, nephew or niece (including older generations of each e.g. great grandparent). Additionally please note:

1. This includes relatives by marriage or civil partnership
2. Two people living together as if they were married or in a civil partnership will be treated as though the couple were married or in a civil partnership and
3. The stepchild of a person shall be treated as his/her child.
4. There's no restriction on how many people can live in the annexe to qualify providing they are qualifying family members

In addition to the above, further discounts may be applicable as well as the 50% discount, such as  Single Person Discount or a Disregard Discount, depending on the household circumstances.

When is an exemption possible?

Dependant relative living in an annexe

If a dependant relative is living in the annexe and it is their main home then they will be exempt from paying Council Tax on the annexe. A relative is classed as dependant if they are: 

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

If there are other people also living in the annexe then depending on their circumstances, an exemption may not apply, but a discount might be applicable.

Unoccupied annexe that can’t be let separately

An exemption may apply if an annexe is unfurnished and unoccupied (there is no-one living in it) and it can’t be let separately from the property without a breach of planning control.

An annexe which meets the criteria of other available exemptions

There are a number of people who may not be liable to pay Council Tax depending on their circumstances and will not count towards the bill. 

Further information on the categories of who is not counted for Council Tax can be found here.