Is an annexe lived in by a dependent relative exempt from Council Tax?
A self-contained annexe lived in by a dependent relative, such as an elderly or disabled family member, can be exempt from Council Tax rather than billed separately. Where it is not exempt, an annexe discount may still apply. You claim from the council with details of the occupier.
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Check what you're owed →Annexes are often given their own band and bill, which can feel unfair when they house a family member. To address this, there is an exemption where the annexe is occupied by a dependent relative, recognising that the family is not running a separate household for profit but caring for someone.
A dependent relative for this purpose typically means an elderly person or someone who is substantially disabled, who relies on the family. Where the annexe is occupied in this way, it may be fully exempt. Where the occupier is a relative but not dependent, a discount on the annexe charge commonly applies instead.
The right relief depends on the exact relationship and circumstances, so it is worth setting these out clearly. If you think the annexe should not be a separate dwelling at all, you can additionally ask the valuation authority to review its banding, and it is sensible to check other reliefs at the same time.
How to claim the dependent relative annexe exemption
- Confirm dependency. Establish that the relative is elderly or substantially disabled and relies on the family.
- Match the relief. Decide whether the exemption or the annexe discount fits your situation.
- Apply to the council. Submit the relevant annexe exemption or discount form with details of the occupier.
- Consider the banding. If appropriate, ask the valuation authority to review whether the annexe should be banded separately.
Frequently asked questions
- Who counts as a dependent relative?
- Typically an elderly relative or one who is substantially disabled and relies on the family, living in the annexe as their home.
- Is the annexe fully exempt?
- It can be exempt where a dependent relative lives there. Where the relative is not dependent, a discount on the annexe usually applies instead.
- What if it is not a relative?
- Then this exemption does not apply, though other annexe reliefs or general rules may, depending on how the annexe is used.
- Can I also question the banding?
- Yes. If the annexe should not be a separate dwelling, you can ask the valuation authority to review whether it should be banded at all.
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