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Tax breaks considered for ‘Granny flat’

New plans being considered by the Government could offer tax breaks to people who have “granny flats” at their homes.

Eric Pickles, the Communities Secretary, said that he wants to get scrap the extra council tax that is payable under current rules for people who have live-in annexes. He said that the rules are “fundamentally unfair”.

It is believed that people wishing to convert outbuildings and garages in Coventry and throughout the UK could benefit from ministers’ other plans to overhaul the current planning regulations and fees.

Mr Pickles said: “We are keen to remove tax and other regulatory obstacles to families having a live-in annexe for immediate relations.

“We should support homeowners who want to improve their properties and standard of living. These reforms should also play a role in increasing the housing supply.”

The MP stated that the current rules, which charges council tax for annexes and regards them as separate dwellings, are unfair.

It has been estimated that 300,000 households in England could benefit from a change in the legislation.

The reforms are a part of a policy package that will aim to increase housing supplies and help provide more affordable homes.

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