Granny Annexe

Granny Annexe

What are the tax implications on an annexe?

Believe it or not you could be liable for a separate council tax bill for an annexe. This is classed as a separate dwelling and whether it only has access via the main house if it has it's own kitchen and bathroom this would be classed as a separate dwelling.

You may be able to apply for a 'Class T' exemption to the second amount of tax if it is possible to prove that the annexe is :

  • for sole family use
  • for someone who is substantially mentally or physically disabled
  • for a relative over the age of 65

You may also need separate planning for the annexe. Also since April 2016 buying a property with an annexe could be classed as buying a second home and therefore be liable to the extra 3% stamp duty.

The government's idea of helping a dependent relative seems to have been ignored in more stealth taxes.

Any property advice Cooper Adams are here to help.


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