Exemptions

You may also be exempt from council tax for your annex if:

• you have a close relative who lives in the annexe and they are either:
  • over 65 years of age or
  • they are either severely mentally impaired or substantially and permanently disabled.
• the annexe is unoccupied and cannot be let separately because of a planning restriction.

Annexe discount

The government introduced legislation allowing 50% discount on annexes – if the annexe resident is related to the liable party in the main residence – on 1 April 2014.

Before April 2014, annexes were subject to a council tax bill separate from the main house.

From 1 April 2014, annexes may be entitled to a 50 per cent reduction in council tax, which are:

• 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 percent reduction is on top of 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 and be entitled to a 25 per cent single occupier discount and a 50 percent annexe discount.

The criteria for the annexe discount is:

• the annexe must form part of a single property which includes at least one other property. ie. the annexe must be within the grounds of the main house (not necessarily attached) and must 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. For this purpose a relative is defined as: a partner, parent, child, step-child, grandparent, grandchild, brother, sister, uncle, aunt, nephew and niece (also includes great-grandparent, great-grandchild etc. and great-great-grandparent etc).

If have any questions concerning either the discount or exemptions for an annexe please contact us.