Council tax on annex

[TakeMeToTheSunshine]

After some help, I'm very confused!

Looking at purchasing a house with an annex which apparently can't be classed as a separate dwelling but has it's own postal address and council tax band.

We're very confused! Does this mean we have to pay council tax on the main house and the annex even though they aren't separate dwellings....isn't that a contradiction?

Also trying to work out if this means we'll have to pay stamp duty on both...as perhaps the annex will be seen as buying a second home?

A friend has a similar arrangement (small barn conversion on her property). It has its own council tax banding (so yes, has to pay two council tax bills but also gets two lots of bins), but it cannot be sold as a separate dwelling. She uses it for guests and Air BnB. I'm not sure how the stamp duty would work but your solicitor will know.

Thank you, we need to check there aren't any restrictions on renting it out as atleast then it'll be used and give us some return. We really don't need the extra bedroom 🤣

Does it have a separate electric/gas/water meter?

It has independent gas supply? So presume it has separate gas meter

We have an annexe, separately banded for council tax. We get a 50% discount on that though as it is just used by us as part of our house, ie for our guests. To pay nothing, it needs to be used by a dependant relative.
If you're thinking of renting it out for Airb&B or similar, you would have the same small allowance as any other dwelling. Any more than that and you will need to apply for planning permission for a change of use. Many (most?) annexes are unlikely to be given planning permission as a separate dwelling, so if this is the route that you really have to take, I would consider putting in a pre-app with the planning department before getting further into buying.

A friend of mine had this when she bought a house with annex. The entrances were completely separate. To save on the double council tax issues, they had to have internal access to the annex. They knocked through a wall, so it was considered a part of the main building and no longer separate. They still had two energy accounts due to the separate energy meters but this was manageable and much cheaper than 2 x council tax.

Oh that's interesting, the annex has a connecting glass walkway to the main house, which also has an external door in it. So not sure if that helps us or not 🤔

They often get people with annexes if they have a fully fitted kitchen.

A friend of mine argued for years with N Yorks council and finally got his own way by putting in a mini oven/hob, and an under counter fridge. The council said 'you need to be able to pick everything up to move it in an emergency, and you've got a fridge' and he said 'I'll pick it up and put it on my back.'

Tbh, I think they probably just got sick of arguing with him. He's not a man who is ever prepared to be in the wrong.

Anyway, fitted kitchens with proper appliances are the killer when it comes to Council Tax. If you can downgrade the kitchen you might be able to get rid of the separate council tax.

They don't seem to be in the slightest bit bothered about them having a shower/W.C.

I must say, they had a bloody cheek doing what they did; they made a small fortune using it as an Air B and B until the market in their area got absolutely saturated.

I definitely think it shared a water supply from the house, and had gas bottles - but it was independent of the house with its own entrance.

Originally it was meant for an elderly relative.

I think you might need to check if it has been done recently, with the current owners. Not the same situation, but one of our neighbours split his house into two houses by building up on the original extension which I think had a Council Tax banding of A. It is now a three storey house and because they haven’t sold it (rented out) it is still A. Apparently it will be reassessed on sale. This should be an area looked at in the Budget!

I've looked into this before and it was a massive minefield, so I gave up 😂 I think it might differ by council, as there's so much conflicting advice. I've seen, as PP has mentioned, that you can get it exempted if a dependant relative lives there but also seen the same if it's not used as a dwelling and only for "family enjoyment".

It's quite unusual to have an annexe with it's own postal address though. Usually it's not permitted as its built on the same plot another family home.

Thanks for all your replies. We're trying to get some info from the council but it's proving hard work!
I believe the annex was built by the current owners for the wife's mother to use, but it's now let out to a family friend (perhaps cash in hand?).

It's confused us that it has it's own postal address too.

This is part of the floorplan so it's very clearly connected to the house...

You can check at the valuation office but if they are saying its separately banded then it will be. You could apply to aggregate the council tax bands for both properties but it will go up on the primary home. It is also not a given that if the annex is capable of being separate accommodation you will be successful. The link between the properties is not enough to combine the bands. There is quite a lot of case law on this and a tribunal and application process. It is long winded, very very slow and you would need some legal awareness. I would take the banding on face value