Do you have an annexe or holiday let?

[sleepyhoglet]

Hello! We are trying to buy a house which has a separate mini house within the plot. It's quite shabby chic but has a kitchen, bathroom and bedrooms and the current vendors live there as the built the main house as a development . I can't work out whether we would have to pay council tax on this- we don't intend to let it out so it would be vacant... any ideas?

yes you will, We converted a building in our garden so had to submit planning. because the application was successful we ended up getting a separate CT bill about a year after completion of the works.
If the council are not aware of this building I would keep quiet.

ours is also vacant so I asked the Council if I still needed to pay and guess what? I do. 50% reduction. Daylight robbery I think.

Some councils operate a system where you pay 200% Council tax if a property remains vacant for over 2 years.
You need to check the status of the build and see if it is its own entity.

There are two two types of annexes, some built as granny annexes and zero billing or not billed separately, check with the relevant council.
If your annexe does have a separate council tax bill you could consider removing the cooker and incorporate the area into the main building function, again discuss with the council.

There is actually no consistency recently looked for and bought house with an annex.
House 1 shared entrance left to house right to annex. annex has One bedroom, kitchenette sink fridge, kettle maybe room for microwave - separately rated for council tax.
House 2 separate drives and front doors. Annex has full kitchen with cooker, hob and washing machine. Two bedrooms. - in council tax of main house.
Both same district council, adjacent villages. House 2 built in 2018, house 1 built in 2016.
No real reason behind decisions.
The estate agents did declare council tax ratings on details. So maybe check with them.
Though the total council tax bill was almost identical.

The annexe (which is its own building) currently is council tax band a but the main house is unbanded as it was a development project for the owner. Guess I will have to get the main house banded and pay two lots. Doubt I could rent out the Annexe though as it doesn't have heating.

Thanks for all your thoughts. It's going to be contacting the council I think and see what they say.

That depends on the existing CT liability. Talk to the Council. IME they are really helpful.

We bought a property where the previous owner had a business in part if it; two CT bills. We informed the council that we were now occupying the entire premises for sole domestic use; they sent an inspector who agreed that was now the case and the second CT was cancelled.

@Alwayscheerful

There are two two types of annexes, some built as granny annexes and zero billing or not billed separately, check with the relevant council. If your annexe does have a separate council tax bill you could consider removing the cooker and incorporate the area into the main building function, again discuss with the council.

Granny annexes are still rated separately but they are exempt if there is a granny in residence. If it is empty or rented out, council tax is still due.

Removing the kitchen is one way around the issue. If you are self employed, you could use it as an office and have it classified for business rates. Depending on the size of the building and the size of the business, you may be exempt from business rates.

www.gov.uk/apply-for-business-rate-relief/small-business-rate-relief

MiL & Fil bought a property with a converted stable/annexe in the garden. 1 bed, bathroom, kitchen and living room. Previous owner let it out as a holiday let. MIL & Fil kept it for when our family and BIL family visited - max twice a year each. They had to pay separate council tax for it even though it shared an oil and septic tank with the main house and was only occupied for around 4 weeks a year.

@bigbluebus oh that's a pain. Did they try to appeal it?

Can you take the kitchen out, then Is it exempt? Just take out the cooker…?

@sleepyhoglet Yes they did but were told that as it had its own kitchen, bathroom and front door it was classed as a separate property. It shares the driveway and garden though which could not be split so it could never be sold off as a separate dwelling.

I was just doing some research and found our about business rates. Seems that if the annexe is available to let as a self catering cottage for 140 days a year (not sure they actually need to all be booked) then you can register for business rates and if you make less than 12k per year (which we would), you don't pay council tax and business rates are nil. I think I may need to work our how to make this happen

@bigbluebus could work for your pil too perhaps. They don't actually have to let it.

@sleepyhoglet I'm guessing that's what the previous owner did. Don't think MIL would bother now at the age of 93!

I've also read if you apply and say the owner of main house uses the annexe eg as an extra living room or home office then it can get a discount off council tax so that's another route we may try