Wtf? 2 lots of council tax on one house?

[Egose]

We're renting and currently looking to move.

Saw a house today advertised as a 3 bed, it's got a converted cellar where the 3rd bed is, as well as a shower room and another room with kitchen type facilities in, so some potential to have it as a kind of annex however it's being rented out as one property.

I WFH full time and rather liked the idea of working in a separate part of the house away from the rest of the family...until I read the part that the house is registered for council tax as 2 dwellings so you have to pay 2 lots of council tax!

I have honestly never heard this before - although the cellar has its own front door there's also a connecting door from the house. And it's being marketed very much as one house, with the 3rd bed in the cellar (other 2 are on the first floor).

Although I did rather like the house, I can't afford an extra £100+ in council tax every month!

Has anyone else ever encountered this?

You need to contact your local council.

If the house has 2 addresses for example 1a Bloggs Street and 1 Bloggs Street then this would be classed as 2 addresses therefore 2 council tax bills.
What does the land registry say in relation to the property?

Yes, it’s pretty common. I believe you can have the kitchen removed and then it'll be reviewed, but if it keeps its own kitchen & bathroom, it’ll count as a separate dwelling under most council rules.

(Not that I’m an expert! I’ve just seen it around a fair bit)

www.gov.uk/guidance/understand-how-council-tax-bands-are-assessed#council-tax-bands-and-annexes

This might be useful. The Valuation Offoxe Agency determine bands.

Should have said ‘valuation office agency’

Yes there are 2 addresses, the cellar seems to be listed as 'annex to' the main house.

Just seems crazy to me. The house is one we'd be quite interested in otherwise, but not for having to pay council tax twice!

We're only renting so it doesn't sound like there would be any way round it.

Yes, if their is a second kitchen, even without a second address, it is counted as 2 dwellings for council tax purposes.

That's interesting about the kitchen, I never knew that. A couple of years ago a relative built an annex extension onto their house for elderly parents, it has its own front door (and also a connecting door from the house) and is completely self contained, but is all treated as one address (and I'm pretty sure they only pay 1 lot of council tax - sounds like they should be paying twice!)

But surely you can only be resident at one of the addresses? Could you not apply for an exemption for the other?

I thought annexe’s were exempt from council tax anyway?

My parents created a 1 bed annexe for my gran in their home, it had its own kitchenette and bathroom as well as lounge and bedroom, and front door, though there was a connecting door. She lived there about 20 years. After she died I lived there with dd1 when househunting. Never ever did the issue of double council tax arise.

@Egose

That's interesting about the kitchen, I never knew that. A couple of years ago a relative built an annex extension onto their house for elderly parents, it has its own front door (and also a connecting door from the house) and is completely self contained, but is all treated as one address (and I'm pretty sure they only pay 1 lot of council tax - sounds like they should be paying twice!)

I believe there are exceptions to the council tax on an annexe if it’s occupied by a dependent family member (or something along those lines)

We are looking at a house with an annexe and 2 council tax bands. From what I've read if it can be completely self contained ie has its own door, bathroom, sleeping, cooking and living facilities (and can be closed off from the rest of the property) it will have a separate council tax for the annexe. One thing you could do (and we're considering this) is ripping the kitchen out as it won't be a self contained annexe anymore.

@Egose

That's interesting about the kitchen, I never knew that. A couple of years ago a relative built an annex extension onto their house for elderly parents, it has its own front door (and also a connecting door from the house) and is completely self contained, but is all treated as one address (and I'm pretty sure they only pay 1 lot of council tax - sounds like they should be paying twice!)

Relatives have a self contained annex but part of the main dwelling (internal access) and all on the same gas/electric/water bills so one lot of council tax.

Also if no one lives in it and you use it as part of the house you get 50% discount; if 1 relative/adult lives in it they get the standard 25% single adult discount. If you don't use it at all you have to pay the full 100% I believe.

I know when my father died and my mum had to register for single occupier one of the questions was can any part of the house be seperated off into a seperate dwelling - wasn't whether it WAS it was if it could be

You can combine properties. My parents knocked two 3 beds semis together and registered one address so they only paid council tax once. Take advice from the council. I think very changed the second kitchen into a utility room.

@MojoJojo71

But surely you can only be resident at one of the addresses? Could you not apply for an exemption for the other?

Won't get you very far. If you have a second home as a holiday cottage, you still have to pay Council tax on it even though you're not resident there.

And if you manage to persuade them it's unoccupied, in due course the Council may well want double Council Tax on it, which won't please the landlord.

Obviously as we're only renting we wouldn't be able to make any changes.

I was thinking that as we'd only be one household whether that would make any difference/ if there was a way to get out of paying twice
but doesn't sound like there's any way round it (without making changes to the property which obviously we couldn't do)

If you managed to avoid needing planning permission and made sure the council couldnt find out about the second kitchen etc, you could get away with it.

Presumably the price the rent is set just recognises you need to pay 2 council taxes so is cheaper

As above, take away the kitchen and it will be classed as one house again.

Its a known thing around here as its not uncommon for folk with a decent sized garden to build a small but self contained granny annexe...the rule of thumb is two kitchens, two council taxes.

@user1471518295

As above, take away the kitchen and it will be classed as one house again.

If someone took away a kitchen from a house I was renting out, I'd be more than a bit pissed off...

There's obviously a desire for this kind of set-up, so there's no reason why it wouldn't be available as a rental property as well as ones to buy. If a family wanted/needed to rent and had a semi-dependent elderly parent/young adult child and this was an alternative to two separate households (also with two lots of council tax anyway), there would be a lot of positives for them and no/very few negatives.

It's not really any different from sole occupancy of a 5-bedroom detached house, or one with extensive paddocks when you don't have a horse - if you buy/rent a property that doesn't especially match your requirements, you'll end up paying extra for something that you don't need/won't use - but which you COULD use, if it suited your needs/lifestyle. The council could argue that it isn't their fault if you choose (what they might consider) to be an inappropriate dwelling set-up for your/your family's needs.

Obviously, this is no use to you as tenants, but I heard as well that it was multiple kitchens that were the defining point. People can have any number of bathrooms/toilets/en-suites in one property, but it would be considered very rare for one legitimate household to have/want/need more than one kitchen. Many people aspire to multiple bathrooms, but would almost always go for THE biggest/nicest/grandest kitchen they can rather than multiple ones.

I think, but I'll check tomorrow, if it's the kitchens that are the issue. I think it's the self contained bit that attracts the banding.