From 1 April 2014, a 50% reduction in the Council Tax payable on an annexe may be awarded where the annexe is:
- used by the occupier of the main house as part of the main home, or
- occupied by a relative of the person living in the main house
The 50% reduction is in addition to any other discount you or your relative may be entitled to. For example, if your adult son is living in the annexe on his own, he will be liable for Council Tax. He will also be entitled to a 25% single occupier discount and a 50% annexe discount. The 75% due is halved, and the billable amount is 37.5%.
The criteria for the annexe discount is:
- The annexe must form part of a single property which includes at least one other property. This means the annexe must be within the grounds of the main house (not necessarily attached)
- The annexe must also be included in the title deeds of the main house and not registered separately, and either:
- the annexe is being used by the resident of the main house, as part of their main home; or
- the annexe is lived in by a relative of the person who lives in the main house
Here, a relative is defined as: a partner, parent, child, step child, grandparent, grandchild, brother, sister, uncle, aunt, nephew, niece, great grandparent, great grandchild, great uncle, great aunt, great nephew, great niece (and also great great grandparent etc.)
Other reductions available for annexes
We may be able to award an exemption from Council Tax for the annexe. This is if a close relative who lives in the annexe are:
- over 65 years of age, or
- severely mentally impaired or
- substantially and permanently disabled
If the annexe is unfurnished and unoccupied and cannot be let separately because of a planning restriction, then it could also be exempt. Otherwise normal charges apply.