UK Tax Questions? Ask a UK Tax Advisor for answers ASAP
Thanks for your question. Please kindly RATE my answer when you are satisfied
Does the annexe has its own self contained kitchen and bathroom please?
Yes it has its own small kitchen and bathroom
Thanks. If the annexe is self contained it will not qualify for the rent a room scheme unfortunately because a building or part of a building that is designed for permanent use as a single residence - e.g. has its own kitchen and bathroom - is treated for the purposes of the legislation as a separate dwelling and therefore does not qualify even if its division is only temporary.
In addition there are two further issues you should consider. First if the annexe is self contained then you will be creating a tenancy irrespective of what your written agreement may call itself with a minimum period of 6 months security of tenure and the requirement to protect a deposit etc. It is possible to overcome this if you provide services to the tenant - e.g. cleaning one a week or meals.
Second based on what you say if the arrangement comes to the attention of the council it is very likely they will seek to impose a second council tax charge on the annexe. It is likely you would have to remove the kitchen in order for a second council tax charge to not apply.
Is there anything above I can clarify for you?
Does the above answer all your questions or is there anything I can clarify or help with any further?
ok that is very helpful