Council tax

Stigo

Just looking to purchase a house with an annex and I have found out that both house and annex are separately liable for council tax - they even have different post codes!

Are there any specific requirements in order for them to be classified as a single property for council tax purposes? For example, do they have to be connected internally. There is only two of us, so if I lived in the annex and my wife in the house would we get a 25% reduction for single occupancy? The combined council tax for both is is higher than band H, which seems unfair as it is a single property in HM Land registry.

Any help appreciated.

davidmcn

Stigo said:

if I lived in the annex and my wife in the house?

Is that actually what you'll be doing? Expect scepticism from the council.

A bigger problem, if you need a mortgage, is whether the lender will be happy, as they tend not to like annexes.

KatrinaWaves

Speak to the valuation office. You may be able to get them classed as one property. The council have no say. I certainly wouldn’t try to pretend you’re gonna live in separate parts of your houses as that’s not true is it... 

Mickey666

My house has an annex and we have two council tax bands, even though it is all one property on one title.  They both have the same postcode though.  I believe our annexe was given its own council tax band when a previous owner rented it out.  I doubt that a husband and wife living in each ‘property’ would qualify for single-occupancy discount, though you could always try asking.  What I do know, from when my parents lived in our annex, is that a ‘dependent relative’ (eg parent over 65) qualifies for 100% discount, which was handy at the time.  Check with the local council about changing to a single council tax band.
How ‘self-contained’ is the annex?  Does it have separate meters?  Ours had separate electricity meters but I had one taken out.  Own front door?  Ours has, but there are also internal doors so it’s not totally separate from the main house.
The two addresses also confuse TV licencing, which can be fun  

lincroft1710

They do not have to be connected internally. 

Agree with Katrina, speak to the VOA and ask what would be necessary to combine the properties to form a single dwelling for CT purposes. They can be slightly inconsistent and the rules seem to have changed a little over the years, so it is best to obtain the latest thinking. Separate meters are not necessary.

I doubt very much the council would believe your scenario of you and your wife living separately.

macman

Not unless you are divorced or legally separated.

CIS

Not unless you are divorced or legally separated.

A couple can maintain a separate residence for council tax purposes. Legally can each retain a separate residence, even next door, however the council are going to be difficult to persuade that it is genuine.

If the annex has been banded separately only as a 'self-contained' dwelling under Article 3 you can use it as part of the main property and still receive a discount, there's no need to try and play around with 'sole or main residence'. This assumes you're in England.