Different types of council tax discounts and exemptions

Annexes and granny flats

Annexes being used by you or your family

You may be able to claim a 50% discount on your council tax for an annexe which is being used by you (the occupier of the main building), or a member of your family (who is not dependant on you, see below).

The discount can be given whether the property is furnished or unfurnished.  it can be in addition to some other council tax discounts, including single person discount, e.g.:

Council tax bill: £1000
Less single person discount (25%): -£250
= £750
Less annexe discount (50%): -£375
To pay: £375

You can't claim this discount if your annexe is occupied by someone who is not a member of your family.

Annexes being used by a dependant relative

If a dependant relative lives in an annexe which forms part of your main home, the annexe is exempt from council tax. 

  • Apply for an exemption for an annexe occupied by a dependant relative

A 'dependant relative' is someone who is either

  • aged 65+
  • severely mentally impaired
  • substantially and permanently disabled

Unoccupied annexes due to planning restrictions

If a single property includes another 'dwelling' - such as an annexe or granny flat - but cannot be let separately due to planning restrictions, it is exempt from council tax.