Can I make my annexe not a dwelling for council tax?

Hi all, I'd appreciate some advice please.

I'm in the process of buying a house that has a physically separate 1br (30m2) self contained annexe with separate bathroom & kitchen, and is currently rated separately for council tax. The gas & electricity are on the same bill as the main house, and there is no way it could be separately sold.

It was originally an outbuilding on a farm before the current owners of the property converted it to a granny annexe 20 odd years ago.

We have no intention of renting it out so don't want to be paying two lots of council tax. The plan is to use it for a games room, and for occasional guest accommodation.

I've read all the legislation and previous postings on this site (I think), but can't find any examples of what people have done to make an annexe no longer taxable.

My plan is to gut out the kitchen (including permanently removing all plumbing/electrics), but ideally leave the bathroom (with toilet/bath) as it's pretty handy to have a spare loo. What I want to know is if this is likely to be sufficient, and if not what else am I likely to need to do?

Has anyone successfully made changes to an annexe so that it's not considered a separate dwelling any more? If so I'd really appreciate your advice.

Thanks in advance

Comments

  • Itismehonest
    Itismehonest Posts: 4,352 Forumite
    edited 15 March 2012 at 5:22PM
    My pet hate subject this :(

    Firstly, what is the Planning Permission on the annexe?
    Was it previously used commercially as a holiday let?

    For CT purposes you can take out anything which makes the annexe habitable & the Council may allow you to up the band on your home - if the annexe connects directly into the house - to cover the entire building but you may fall foul of Planning.

    Effectively you are paying for a 2nd home which is part of your main residence.

    It is particularly frustrating when the "2nd home" cannot be sold or even run separately - being completely dependent on the main home to work.
    We've had this argument going on with the Council for years.

    Eric Pickles was looking at the system because these scenarios are particularly unfair but it got put on the backburner at the turn of the year & so things go on as before.

    Basically, what you can best do is all down to the Planning & if you intend to ever move or are happy to live out your days there.
  • xylophone
    xylophone Posts: 45,556 Forumite
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    Is it possible to join the annexe to the main house so as to make it one home?
    Might be a good idea to consult an architect/planning?
  • vax2002
    vax2002 Posts: 7,187 Forumite
    Have you not considered converting it in to a worship area ?
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • lincroft1710
    lincroft1710 Posts: 18,702 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    a4c1000 wrote: »

    My plan is to gut out the kitchen (including permanently removing all plumbing/electrics), but ideally leave the bathroom (with toilet/bath) as it's pretty handy to have a spare loo. What I want to know is if this is likely to be sufficient, and if not what else am I likely to need to do?

    I'm ex Valuation Office Agency and used to spend a lot of time dealing with these situations.

    Your plan sounds fine to me, but why not phone your local VOA just to confirm this. As you are probably aware the CT band on the main property may increase.
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • a4c1000
    a4c1000 Posts: 4 Newbie
    edited 15 March 2012 at 6:14PM
    Thanks very much for the quick replies.

    lincroft1710
    I tried phoning the VOA but they were non committal at best on what I had to do. Yes, the value of the main house may increase but I think it will still be cheaper

    vax2002
    Hmm, I like your train of thought. Perhaps a temple to snooker and beer? Jokes aside, its worth looking at, thanks for the tip

    xylophone
    The annexe is the other side of the drive, so v difficult to join to the house I'm afraid

    Itismehonest
    The annexe was converted for the current owners elderly parent to live in. Since they died it has been primarily unoccupied, but was sometimes rented out on a long term basis (not as a holiday let). Not sure what the exact permission is I'm afraid.

    My other idea is to run it as a horribly overpriced holiday let so no one ever stays but I can at least claim the costs on my tax bill?
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
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    You call it an annexe, then say it's on the other side of the drive. So, is it attached, or detached?

    Why don't you want to rent it out? There are more options than a tenant, or a holiday let.

    Your tax plan is a non starter - rules changed.... has to BE available AND let more than X days of the year.... and I think you also can't put losses against your other incomes to lessen your tax bill.
  • You call it an annexe, then say it's on the other side of the drive. So, is it attached, or detached?

    Why don't you want to rent it out? There are more options than a tenant, or a holiday let.

    Your tax plan is a non starter - rules changed.... has to BE available AND let more than X days of the year.... and I think you also can't put losses against your other incomes to lessen your tax bill.

    It is detached from the main house - does a building have to be attached to be called an annexe? If so I wasn't aware of that.

    I don't want to rent it out because the only way to access the "annexe" is through the back garden of the main house. I have 3 small children who play in that area, and it backs onto a busy road. Sometimes my kids annoy me, but I don't a) want them killed after someone leaves the gate open or drives though without looking properly, or b) want someone I don't know hanging around my children. I think that's pretty good justification for not wanting to rent it out...
  • Itismehonest
    Itismehonest Posts: 4,352 Forumite
    You call it an annexe, then say it's on the other side of the drive. So, is it attached, or detached?

    Why don't you want to rent it out? There are more options than a tenant, or a holiday let.

    Your tax plan is a non starter - rules changed.... has to BE available AND let more than X days of the year.... and I think you also can't put losses against your other incomes to lessen your tax bill.

    We have one that isn't attached to the house but opposite as described, PasturesNew. The Council still term it as an annexe for CT. The argument that somewhere can be let is one our Council uses. Under our circumstances it would mean a man in his 70s having to go back into full time business to run it as a holiday let - with all the bureaucracy, red tape, insurances, safety checks, advertising, cleaning ........... He'd probably still be doing till he dropped.

    If it hasn't been used commercially I wouldn't go that route until you know exactly what is involved. For instance, when a property becomes part residential & part commercial the 2 parts will have to be under separate mortgages if you want to sell in future. Lenders are not giving residential mortgages for anything which may be termed commercial.
    You really need to know what, if any, PP was given when the annexe was converted from the outbuilding.
  • xylophone
    xylophone Posts: 45,556 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Might have to reconvert it to shed with gardener's loo?;)
    Nothing to prevent your having a game of snooker in the shed...
  • Mrs_Arcanum
    Mrs_Arcanum Posts: 23,976 Forumite
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    Worth checking the original permission as to whether the use is "ancillary" to the main dwelling. i.e. they cannot be sold or used without each other. If the use is strictly ancillary to the main house you may be able to convert it to whatever you like (as an annex to the main house) as the permission inextricably links the two properties.
    Truth always poses doubts & questions. Only lies are 100% believable, because they don't need to justify reality. - Carlos Ruiz Zafon, The Labyrinth of the Spirits
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