Council Tax

Lewigreg081281

Hi,

Hopefully this is in the right place.

Basically my parents have just bought a new property (a few month back). The property 2 bed bungalow, however it also has a annex attached. It's can be accessed through the main house and also there is a external door. This annex has been up a good few years.

On the plans it's down as a single story extension with external door , which is exactly what it is.

My parents have had a really arrogant guy from the council round inspecting it and saying it may have to be re-banded. Obviously my mum and dad are not happy has it's not a separate property and the only person who stays in the bedroom in that area is my brother.

There's another guy coming to value it and give it a tax band on Monday. I'm just wondering were they stand really the rules seem very cloudy.

Also should this have been something the solicitors should of flagged up during the purchase? If my mum and dad would have know of the additional costs they may not have bought the property in the first place. My mum has been onto the solicitors and they seemed shocked at what the council are doing.

They've just said to see what the valuation guy says and then lodge an appeal. From my point of view surely they should have advised my parents of this issue before they bought the property.

Any advice would be great I've done a search on the net and found articles saying the government where planning on scrapping the tax for annex's but has anything come of this?

Also has my brother is immediate family will they have to pay additional council tax? Or failing that he's single so would he be allowed single occupancy discount?

Thanks

HappyMJ

It would only have a separate banding if it were fully self contained. i.e a bathroom, kitchen etc... as it has an internal door to the remainder of the property I'm assuming that's to access the kitchen and bathroom and would not be seen as a separate property. Council tax decisions can be appealed so don't worry too much.

Lewigreg081281

The internal door does lead to the kitchen but the bedroom which is in the the annex area has a ensuite bathroom and there's also a small sink and a single hob on the side. I am guessing this is the councils issue. The annoying thing is it was all on the plans and it's all gone through the solicitors etc and has just come out of the blue really.

It's annoying really because surely a ensuite can be added to a bedroom in any home really.

Thanks again

They plan on appealing but the additional cost is a real worry for them. Is there any chance is will be avoided due to only my brother staying in the bedroom?

noh

Remove the sink and hob.

CIS

My mum has been onto the solicitors and they seemed shocked at what the council are doing.

Its not the council's decision, they have no say in the matter. Banding properties is the responsibility of the Valuation Office Agency, part of HMRC.

Also has my brother is immediate family will they have to pay additional council tax?

If its banded as a property then a council tax liability arises.

Or failing that he's single so would he be allowed single occupancy discount?

Yes.

Lewigreg081281

Cheers for the replies.

If its banded as a property then a council tax liability arises.

Does that mean my brother may be liable?

It's ridiculous really. If you think of it has a dwelling as a whole it's just a 3 bed bungalow with a second bathroom.

Is immediate family not exempt from a charge then?

Also what happened to the government's plans to scrap it altogether?


Thanks

lincroft1710

HappyMJ wrote: »

It would only have a separate banding if it were fully self contained. i.e a bathroom, kitchen etc... as it has an internal door to the remainder of the property I'm assuming that's to access the kitchen and bathroom and would not be seen as a separate property. Council tax decisions can be appealed so don't worry too much.

Internal door does not stop separate banding. Annex has facilities for living, sleeping, washing, preparation of food, a WC and its own access to outside, it is therefore self contained and in CT law a dwelling in its own right and thus should have its own CT band.

The High Court has upheld this in several notable decisions.

Certain family members who inhabit annexes and are over 65 or physically or mentally disabled are exempt from CT payment.

However as noh has said, remove the sink and hob plus water supply to sink and power source to hob. Be aware that if this is done before the VOA inspection and the bungalow's CT band does not already reflect the extension, then the CT band will probably increase.

xylophone

http://www.telegraph.co.uk/news/politics/9306898/Tax-break-for-granny-flats.html

The proposed legislation does not appear to have been enacted so presumably the old rules still apply?

Lewigreg081281

Thanks again, it's really upsetting my parents all this.

I'll pass on the info I've just said to them we can't do anything until it's been inspected. It's just frustrating that nothing was brought up before they bought the place.

Should this have been something their solicitor should have advised could happen?

Also why now the annes has been up for years before my parent's bought the property, how do they suddenly get inspected?

All the paper work they had has it banded as category C and all the things in the annex are detailed in the plans for the extension.

That's the article i found xylophone and i've not found anything else since so i'm guessing they never went ahead with it.

My brother is 25 so unfortunately not in the over 65 exemption, he can't afford his own place hence him living there until he can. So basically if it's immediate family there is still no discount/exemption?

Thanks

CIS

So basically if it's immediate family there is still no discount/exemption?

That's correct.

Itismehonest

Basically if the annexe can support separate living from the main house it is liable for separate CT.

The council will probably treat it as a 2nd home. Yes, I know, ridiculous but that's how it works. :mad:

Depending on where your parents live there may still be a 2nd home discount but many councils are now getting rid of it.

Next time you hear people banging on about 2nd home owners remember how many are in a similar position to your parents & cannot sell their 2nd home without selling their main residence. Second home owners aren't all rich people with choc-box places in holiday areas they visit a few times a year.

It would be cheaper for your brother to pay at single rate or, cheaper still, remove everything which makes the annexe self-supporting.
However, you will probably find that the revaluation still increases the band if the property hasn't had a revaluation recently.