Self contained Annex issues

HouseHuntingAmy

Not a lawyer or tax adviser, but we watched close friends untangle almost exactly this last year, so a few anchors while you get proper advice. First, the council tax problem is the easy one: the council does not need a formal tenancy agreement, it needs credible proof that someone lives in the annex as their main home. Offer what actually exists - their bank statements showing the address, electoral roll registration, a signed letter from them confirming when they moved in, your covering letter, photos of the furnished annex. The empty premium is challengeable and councils do back down when faced with ordinary evidence of occupation. Second, and I say this gently: be careful drafting a "Licence to Occupy" from an AI tool. What makes something a tenancy or a licence is the reality (exclusive possession, regular payment), not the label on the document - courts look at the facts, and a mislabelled licence gives you false comfort while the obligations arrive anyway. Third, the mortgage and HMRC points deserve proper handling: ask your lender in writing whether their consent covers an occupier contributing to costs, and register for self-assessment - the January date is the online filing deadline so you have time, but check the rent-a-room relief question specifically, because it usually covers a furnished room in your own home and a self-contained annex with its own address may not qualify. Fourth, if this carries on long-term, renting brings real obligations (gas safety certificate, electrical check, deposit rules if you ever take one) and that is the moment a modest solicitor consultation pays for itself. Short version: solve the council tax with evidence now, and paper the arrangement properly with professional help rather than AI.