Got a granny flat? Watch out – you could face an extra council tax charge

A member has been caught in the most unfortunate situation. Twenty years ago, the law changed which meant that those homes with self-contained granny or nanny flats now have to pay two lots of council tax. Even if the self-contained unit or flat cannot be sold separately.


Family homes with Granny Annexes are classified by the Valuation Office Agency (VOA) as separate dwellings so homeowners pay a full rate of council tax on them – on top of what they pay for their own residence.  The good news is that there are discounts if you are caring for your elderly relatives or grown-up children. The bad news is that the VOA seem to have little idea which properties are open to this attack. It’s a matter of hit and miss as to which families are forced to pay two amounts of Council Tax.


There are currently only 25,880 annexes registered in England and Wales (March 2014); the total stock of Council Tax dwellings is nearly twenty five million. Considering the UK ageing trend, these figures suggest that there are many thousands of homes with separate accommodation who have fallen under the radar.


As the 1992 legislation is retrospective, there will be many homes under the new rules that will be liable to pay two lots of council tax. The VOA may very well decide to uncover these properties in order to generate additional income for Councils.


Granny Annexed homes not currently paying Council Tax should be warned. They are vulnerable to the VOA. We would be very interested to hear people’s views on this. Have you been caught by the VOA? Do you think it is fair for the government to tax a home twice? Please comment below or send an email to  Privacy is important to us. Your details will be kept anonymous.