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Dave
04-01-2006, 11:49 AM
Hello all
I am posting this on behalf of my landlord who is also a friend.

The situation is as follows: Attached to their main property is an annexe which was originally built to house my friends wifes mother when she became ill.
The property consists of a living area with kitchen and a seperate bedroom and bathroom. The annexe can be accessed via one of two doors, both external.

Since the death of her mother they been renting via the rent a room scheme at £550pm and tax is being payed on the additional income over and above what is allowed by the scheme.

Today, they received a letter from the valuation office agency (VOA) stating that an officer would be visiting to view the annexe on the 10th Jan.
They are obviously extremely concerned that if the officer takes the view that it is a self contained unit then they will be liable for back dated council tax. Is this the case?
Even if the annexe had a doorway fitted between itself and the main house, would it still be considered self contained.

If it is assessed that the annexe is self contained, what will be the likely implications for my friends? ie, will the annexe just be banded seperately from now on or will they be liable for any backdated tax?
Also, why would the VOA take a sudden interest after what has been nearly 10 years.

Tax Accountant
04-01-2006, 20:52 PM
Hello all
I am posting this on behalf of my landlord who is also a friend.

The situation is as follows: Attached to their main property is an annexe which was originally built to house my friends wifes mother when she became ill.
The property consists of a living area with kitchen and a seperate bedroom and bathroom. The annexe can be accessed via one of two doors, both external.

Since the death of her mother they been renting via the rent a room scheme at £550pm and tax is being payed on the additional income over and above what is allowed by the scheme.

Today, they received a letter from the valuation office agency (VOA) stating that an officer would be visiting to view the annexe on the 10th Jan.
They are obviously extremely concerned that if the officer takes the view that it is a self contained unit then they will be liable for back dated council tax. Is this the case?
Even if the annexe had a doorway fitted between itself and the main house, would it still be considered self contained.

If it is assessed that the annexe is self contained, what will be the likely implications for my friends? ie, will the annexe just be banded seperately from now on or will they be liable for any backdated tax?
Also, why would the VOA take a sudden interest after what has been nearly 10 years.

Although you don't mention it, I assume that there are separate meters for gas and electricity for the annexe. On this basis, I would take the view that the annexe is indeed self-contained. I confess that my expertise is not related to Council Tax and therefore I can only guess that you would indeed be liable to Council Tax.

I also assume that water authorities are not aware of the annexe. If so, you need to address this as well.

Why do you think Rent a Room scheme applies to rent from this annexe which is apparently completely self-contained? I have not checked up on this but my guess is that it is not applicable in this case.

You may wish to post this query in rental property section.

Ramnik