Do I Have to Pay Council Tax On A Granny Annexe?

Jul 14, 2023 | Helpful Guides

As more families opt for multigenerational living solutions, the popularity of granny annexes has surged in recent years. These self-contained living spaces are a perfect way to accommodate elderly family members or independent young adults while maintaining privacy and independence. However, a common question that arises is whether council tax is applicable to these annexes. In this article, we will delve into the intricacies of council tax regulations concerning granny annexes, providing you with the essential information you need to ensure compliance and avoid unnecessary expenses.


What is a Granny Annexe?

A granny annexe, also known as a granny flat, is a self-contained living space that is typically built on the same property as the main house. It is designed to accommodate elderly parents, relatives, or even tenants. Granny annexes come in various sizes and configurations, ranging from a small studio to a spacious one-bedroom dwelling, complete with a kitchen, bathroom, and living area.


Understanding Council Tax

Before we delve into the specific requirements for council tax on a granny annexe, it’s crucial to understand what council tax is and how it works. Council tax is a local tax levied by local authorities in the United Kingdom on residential properties. It is used to fund essential public services like waste collection, schools, and emergency services.


Council Tax Exemptions for Granny Annexes

While council tax is generally applicable to residential properties, there are specific exemptions that apply to granny annexes:


  • Annexe Inhabited by Dependants: If the granny annexe is occupied by a dependent relative, such as an elderly parent or a disabled family member, and is part of the same overall property, it may be exempt from council tax. However, there are certain criteria that must be met to qualify for this exemption.
  • Self-Contained Annexe: For the annexe to be exempt, it must be fully self-contained, meaning it has its own entrance, bathroom, kitchen facilities, and is separate from the main dwelling. Local authorities will carefully assess the level of self-containment to determine eligibility.
  • No Renting or Subletting: The annexe must not be rented out or used as a separate dwelling, as this could disqualify it from council tax exemption.


How to Apply for Council Tax Exemption?

To apply for council tax exemption for a granny annexe, you will need to contact your local council and provide relevant documentation supporting your case. This may include:

  • Proof of Occupancy: Provide evidence that the annexe is occupied by a dependent relative.
  • Floor Plans: Submit detailed floor plans clearly showing the self-contained nature of the annexe.
  • Utility Bills: Provide separate utility bills for the annexe if available.
  • Council Tax Valuation Office: In some cases, a valuation officer may visit the property to assess its eligibility for exemption.


When Do I Have to Pay Council Tax on a Granny Annexe?

  • Annexe Occupied by Non-Dependant: If the granny annexe is inhabited by someone who is not a dependent relative, such as a friend or a tenant unrelated to the main household, it may be subject to council tax. In such cases, the annexe will be treated as a separate dwelling and will have its council tax band and charges.
  • Unoccupied Annexe: If the annexe remains unoccupied or is used for non-residential purposes, such as storage, it will still be liable for council tax, but there might be a 50% discount on the charge if it remains unoccupied for a certain period.


Can I Claim a Single Occupancy Discount for a Granny Annexe?

The single occupancy discount applies when only one adult resides in a property. However, the rules regarding the application of this discount to granny annexes may vary depending on the local council. Some councils may grant this discount to the main property, but not the annexe, while others may consider the annexe eligible for a separate discount if it meets specific criteria.


Frequently Asked Questions (FAQs):

Q: Can I convert my garage into a granny annexe?
A: Converting a garage into a granny annexe may be possible, but it must meet the same criteria for exemption, including self-containment and occupancy by a dependent relative.

Q: Do I need planning permission for a granny annexe?
A: Yes, you will likely require planning permission from your local council to build a granny annexe. It’s essential to check the regulations and seek necessary approvals before proceeding.

Q: Can I use the annexe for business purposes?
A: Using the annexe for business purposes may impact its council tax status. If it becomes a separate business property, it could be subject to business rates instead of council tax.

Q: What if my relative moves out of the annexe?
A: If the annexe is no longer occupied by a dependent relative, it will likely lose its exemption and become subject to council tax.

Q: Can I appeal if my annexe is not granted exemption?
A: Yes, if your annexe is not granted council tax exemption and you believe it meets the criteria, you can appeal the decision with your local council.

Q: How often do I need to reapply for council tax exemption?
A: Council tax exemption for granny annexes is usually reviewed periodically, so you may need to reapply every few years to ensure the exemption continues.



In conclusion, if you have a granny annexe on your property and are wondering whether you need to pay council tax on it, the answer depends on certain factors. If the annexe is occupied by a dependent relative and meets the criteria for self-containment, you may be eligible for council tax exemption. However, if it is occupied by a non-dependant or remains unoccupied, it will likely be subject to council tax charges. It’s essential to understand your local council’s regulations and apply for exemption if eligible to avoid unnecessary expenses.

Remember to seek professional advice if you are unsure about the council tax status of your granny annexe. Compliance with the law can save you money and ensure a stress-free living arrangement for your family.

Download Price List

Download our price list, dimensions sheet and brochure.

Browse bespoke Garden Rooms

Download Price List

Download our price list, dimensions sheet and brochure.