Granny Annexes

Where a single property contains more than one self-contained unit, each of those units is treated as a separate dwelling for Council Tax purposes. A self-contained unit is defined as a building or part of a building, which has been constructed or adapted for use as separate living accommodation. This includes structures such as those that are commonly known as granny annexes.

 

Ultimately, however, the decision whether or not to assess a property for Council Tax purposes rests entirely with the Valuation Office Agency and not the Council.

 

With effect from 1 April 1995, legislation was amended so that such units would be exempt (Class T) from Council Tax, if they were unoccupied and formed part of another dwelling, or was in the grounds of another dwelling, which could not be let separately without a breach of planning control.

 

With effect from 1 April 1997, legislation was again amended so that such units would be exempt (Class W) from Council Tax if they were occupied by either the elderly, severely mentally impaired or disabled members of the same family, as long as they lived in the other part of the property.

 

For more information and a full list of exemptions, please go to the Council Tax Exemptions page.

 

Listed below are summaries of some High Court cases relevant to the valuation of annexes/self contained units.

 

It was held that the planning restriction on separate sale of the annex was not necessarily relevant and that all factors must be taken into consideration when determining a separate unit of accommodation.

 

The Valuation Tribunal's decision that a granny flat should be deleted from the Valuation List was quashed because the VT had failed to apply the bricks and mortar test. Instead of concentrating on what had been physically constructed which was a self-contained annex, the Tribunal took into consideration the owner's intention to build an extension to his home.

 

Flats each containing a bed-sitting room, with a kitchenette area and an en suite shower room in a YMCA hostel were self-contained and therefore to be treated as separate dwellings. The High Court said that it was necessary to focus upon whether the flats had been constructed for use as separate living accommodation, and found that plainly they had. The use actually made of the building and the fact that a single body controlled the hostel was irrelevant in this consideration.

 

A house and a flat accessed through the hall, stairs and landing of the house comprised two self-contained units for the purposes of Council Tax.