Under certain circumstances occupied or unoccupied annexes can receive either a 50% discount or a full exemption from Council Tax.
What is an annexe?
For Council Tax purposes, if residential premises contain more than one unit of self-contained accommodation, the main house and each self-contained unit (or annexe) will have its own Council Tax band which is determined by the Valuation Office Agency.
A self-contained unit is generally a building or part of a building which has been constructed or adapted for use as separate living accommodation.
Will include a kitchen area, a bath/shower-room, WC, living/sleeping space.
May share common services and entrance with the main house.
Exemptions available for annexes
- 'Granny annexe' (Class W) - This is an exemption relating to 'granny annexes' if you have a dependant close relative who lives in the annexe and they are over 65 years of age or they are either severely mentally impaired or substantially and permanently disabled.
- Unoccupied annexes (Class T) - This is an exemption available if the annexe is unoccupied and cannot be let separately because of a planning restriction.You should be able to find out from the Planning Department at Uttlesford District Council whether there are any planning conditions regarding your annexe.
- Occupied by full-time student (Class N) or severely mentally impaired person (Class U) - If the only occupier is a full-time student or severely mentally impaired person they may be entitled to exemption from Council Tax.
Discount for annexes occupied as part of the main home or by a relative
Which homes can be discounted?
An annexe (or similar self-contained part of a home) which is occupied as part of the main home or is the main home of a relative of the council taxpayer of the main home.
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:
i) This includes relatives by marriage or civil partnership
ii) 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
iii) The stepchild of a person shall be treated as his/her child.
When does the discount start?
This discount is part of the national scheme and came into force on 1st April 2014. Discounts can be granted with effect from that date or the day we receive written notice that all the conditions are met if after 1st April 2014. An earlier date (more than 30 days earlier but not before 1st April 2014) can be agreed once independent proof is supplied to confirm the conditions have been met and from when.
How much is and how long will the discount last?
The discount is 50% and lasts for as long as all the conditions are met.
What information do I need to support my claim?
Confirmation you are using the annexe as part of your home and from what date or details of the relatives relationship with you, their name and date of occupation. You must also advise any other address they live at and why you consider this annexe to be their main home.