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Where Taxpayers and Advisers Meet

Stamp Duty and Council Tax on Annex

Berts
Posts:9
Joined:Thu Jul 28, 2016 3:18 pm
Stamp Duty and Council Tax on Annex

Postby Berts » Wed May 25, 2022 4:53 pm

I am fairly sure I will be able to claim Multiple Dwelling Relief on an Annex as part of a house purchase as the annex is capable of being used as a separate dwelling. It is a separate building (less than a third of the value of the main house), with facilities for sleeping, and preparing food and for washing and a toilet. It does not currently have an oven or hob fitted, but it could easily have these added.

The current owners however do not pay council tax, as they as they rely on the fact that, as there is currently no oven, the annex has insufficient kitchen facilities to be deemed a dwelling.

I am aware of ways to reduce the council tax liability (100% exemption for three months if empty, 50% discount if annex is unoccupied, but is used by a member of the main house who pays council tax).

I would be very interested to understand if it is possible to have my cake (Multiple Dwelling Relief) and eat it (no council tax liability). I'd welcome your thoughts.

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