An annexe is self-contained living accommodation. It can be attached to your property, or have a separate external entrance. Annexes are billed separately for council tax.

Annexes used by you and your family

If your annexe is only used by you and your family (the people who live in the main building) you may be able to claim a 50% discount on the council tax. If anyone who uses the annexe depends on you for care and support, or is not a member of your family, you can’t apply for this discount. It doesn’t matter if the annexe is furnished or not.

The discount can be in addition to other council tax discounts, such as single person discount. So for example, if the council tax bill is £1000 this becomes £750 when the 25% single person discount is applied, and then £375 when the 50% annexe discount is applied.

Annexes used by a relative who is dependent on you

If a dependant relative lives in your annexe, it is exempt from council tax.

A dependant relative is someone who is either:

  • aged 65 or over
  • severely mentally impaired
  • substantially and permanently disabled

Annexes unoccupied because of planning restrictions

If your annexe is unoccupied and can’t be rented separately due to planning restrictions, it is exempt from council tax.

Renting out your annexe

There is no discount or exemption available if:

  • you rent your annexe out
  • you usually rent it out but there isn’t currently a tenant living there
  • someone lives there who isn’t a member of your family