Council Tax for annexes

Council Tax for annexes

An annexe is a supplementary building that is either attached to or located near a larger main building. Think of it as an addition to the property whilst remaining in its boundaries.  It can be used as a separate living space or as an extension of the main building.

Annexes are usually subject to a separate Council Tax charge. However, in certain circumstances, it may be possible to reduce or exempt the total charge.

Below are all of the applicable discounts and reductions available specifically for annexes but does not limit you to applying only for these. If you wish to be considered for other reductions please go back to our discounts, exemptions and premiums page. 

If you bill indicates that a Discount, Reduction or Exemption has been applied, you must tell the Council Tax Department of any changes in your circumstances which may affect your entitlement within 21 days. If your fail to do so, a penalty of £70 may be imposed.

When is an exemption possible?

A dependent relative is living in an annexe

An annexe will be exempt if it is separately banded for Council Tax but forms part of another property and a dependant relative is living in it as their main or only home.

A relative is to be regarded as dependent if they are: 

  • Aged 65 years or more 
  • Under 65 but severely mentally impaired, or 
  • Under 65 but substantially and permanently disabled. 

The following are 'relatives' for the purpose of the exemption: 

  • Spouse, parent, child, grandparent, grandchild, brother, sister, uncle, aunt, nephew, niece, great-grandparent, great-grandchild, great-uncle, great-aunt, great-nephew or great-niece. 

How to apply

To apply for this exemption, you will need to:

An unoccupied annexe that cannot be let separately

This exemption may be granted where an annexe is empty and cannot be let separately without a breach of planning control under Section 171A of the Town and Country Planning Act 1990.  

How to apply  

When is a discount possible?

Annexes 50% reduction

This is a locally defined discount which is available for Annexe’s under certain circumstances. This will apply a 50% discount to the total charge. This discount can be awarded on two circumstances:

Criteria 1

  • Form’s part of a single property which includes at least one other dwelling; and 
  • Is being used by a resident of that other dwelling or, as the case may be, one of those other dwellings, as part of their sole or main residence.

Criteria 2

  • Is the sole or main residence of a relative of the person who is liable to pay council tax in respect of that other dwelling or, as the case may be, one of those other dwellings. 
  • A relative is further defined in the regulations as follows - Spouse or civil partner, parent, child, grandparent, grandchild, brother, sister, uncle or aunt, nephew or niece, great-grandparent, great-grandchild, great uncle, great aunt, great nephew or great niece, stepchild, child of a civil partner. 

If one of the above criteria are met and the annexe is occupied by a sole resident a further 25% can be applied totalling 75% discount. 

How to apply