Will An Extension Change Council Tax?

Home extensions can range from a simple kitchen or bathroom extension to a 30-metre double-storey one. Depending on the size, structure, shape and requirement for groundworks and materials to be used the cost of a home extension can vary from £ 10,000 to £ 50,000. Learning more about How Much Does A House Extension Cost In 2021? may be helpful while you plan a major change to your property.

Will An Extension Change Council Tax?

An extension to your home can increase its market value by up to 23 per cent and consequently impact your council tax as the valuation band increases; however, as per law, these changes only come into effect once you sell the property.

If the nature of the extension is a simple kitchen or bathroom extension or a glass structure attached to the main house, it may not have a significant impact on the market value of your property. Hence, there is a strong likelihood that certain home improvements may not change the council band that is assigned to your property. In such cases, there may be no change to council tax bills (on the basis of reassignment of council tax bands) when the property is sold.

An elaborate extension such as a single or double-storey structure that may have cost you anywhere in the range of £ 40,000 to £ 50,000 will have a significant impact on the market value of your property. This may require revaluation and reassignment to your council tax bands; thus increasing the council tax payments when the property is sold.

Council tax is based upon eight valuation bands that are assigned on the basis of the market value of one’s property and are marked as A to H; in ascending order of value. Properties that are valued at up to £ 40,000 are categorised under Band A. As the values of properties rise, so does their band. The maximum value assigned to a property is Band H; allotted to homes valued at more than £ 320,000.

To learn more about this, we will try to answer the following questions through this article:

Do I Need Planning Permission For Extension?
What Is Included In Permitted Development?
Do I Need Building Regulations For Extension To Property?
What Are Building Regulations?
What Kind Of Changes To Property Affect My Council Tax Bill?
Can I Apply For A Council Tax Discount For Home Renovations?

Do I Need Planning Permission For Extension?

If you follow the Permitted Development guidelines, you do not need Planning Permission for an extension to your house. However, in case there is major work to be done at the front of the house, next to a road or a boundary, Planning Permission will be required.

In case of any of the following changes to your property due to the extension, Planning Permission will be required:

More than 50 per cent of the land around the main house is going to be covered.
The extension is going to be located at the front of the house or on a side with an adjacent highway.
The materials to be used in the extension are not the same as the main house.
The height of the extension will be higher than the highest point on the roof of the main house.
The height of the eaves and ridges will be higher than those of the main house.
There is going to be an addition of raised platforms, balconies or verandahs.

You can Find your local council to contact your Local Planning Authority for details.

What Is Included In Permitted Development?

The scope of Permitted Development runs across varied projects that may be related to the internal or external structure of a property. Home improvement projects under Permitted Development include the following:

building of a small rear extension
construction of a porch
changes of use including loft, garage or basement conversions
knocking down of internal walls
installation of solar panels
installation of satellite dishes
addtition of rooflights or dormer windows

Do I Need Building Regulations For Extension To Property?

Yes, you will need Building Regulations for extensions to your property to make sure that your property is not only safe and hazard-free but also improves the overall living standard for you and your surroundings.

You or your builder should contact the Building Regulations department prior to the commencement of any work on your property. A building control inspector may visit your property at various intervals of the construction/remodelling process to assure that all standards and procedures are being met.

Key areas that you will be required to comply with include the following:

fire safety
ventilation
thermal performance
acoustics

For a detailed overview of the role of Building Regulation, click here Building Regulations: What You Need to Know, From Application to Sign Off

What Are Building Regulations?

These are some basic standards for the design and structural changes that are to occur and are essential to be met during construction, conversion or refurbishment of properties. Building Regulations have been set to assure that the health and safety of the residents will not be compromised in any way as a result of the said modifications to the property.

These include the following:

Structural changes such as house extensions or conversions should not affect a load-bearing wall, beam or chimney breast or which will make access to property difficult.
There should be no electrical safety concerns due to the addition of fuse boxes or plugs, or a change of electrics that causes new electrical wiring.
Installation of heating appliances such as a boiler, radiator or fuel-burning appliance should be managed with extreme caution.
There should be no concern for fire hazards due to construction work and the escape route (of the added/converted section to the premises) must comply with fire safety standards.
Installation of a new bathroom or kitchen should not affect the overall plumbing of the house.
New windows, doors or fixed air-conditioning systems should meet the safety and design standards set by Building Regulations.

What Kind Of Changes To Property Affect My Council Tax Bill?

There are certain circumstances due to which properties may be revalued and their bands reassigned by the local council. Below is a list of factors that may cause a change in band:

a part of your property is demolished and is not rebuilt
the property is altered to subdivide it into self-contained units, (this could be a single unit with an annexe – each unit will be considered under a separate band)
a single property is reconstructed into self-contained flats
flats are converted to a single property
residents start or stop working from home
changes were made to property the property by the previous owner
significant changes such as a new road are being made to the local area
the council tax band was changed for a property with similar features in the same area

While some of the changes listed above are directly related to renovations and repairs being made to premises and they also might be in control of the resident, some might be involuntary and external changes that do have an impact on council tax bills.

Do You Have To Pay Council Tax When Renovating A Property?

If the property is uninhabitable due to the renovations that are being made to it and the nature of work includes structural changes or major home repairs, residents will be exempt from paying council tax for the tenure of the process.

However, if you are unable to qualify for an exemption from council tax, certain home repairs may count you as eligible for a council tax reduction; while renovations that do not affect everyday living and the property remains occupied while work proceeds will not qualify for either an exemption or a discount.

You may be able to avail of a discount on your council tax bill if any of the following repair works are being done at your home:

repair of roof structures or foundations
rebuilding of external walls or chimney stacks,
replacement of floors
removal of internal walls (not partitions)

Can I Apply For A Council Tax Discount For Home Renovations?

To be able to qualify for a council tax discount while your home is being renovated, you must inform your local council office prior to the commencement of the repair work at your premises (or as soon as possible once the work starts. If the claimant informs their local council after the renovations are complete, they will be required to provide substantial evidence to be considered for a council tax discount.

The next steps will be as follows:

Step 1: The council contacts the residents and sends a representative to survey the premises.

Step 2: If the property qualifies for a discount, the reduced amount of council tax will remain applicable for an entire year (this may be up to a 100 per cent discount).

Step 3: Once the property becomes inhabited, residents liable for council tax payments must inform their local council within 21 days.

Step 4 (a): If the property remains unfurnished and uninhabited for less than 2 years, a full council tax bill becomes applicable.

Step 4 (b): If the property remains unfurnished and uninhabited for more than 2 years, residents will be liable to pay a premium called “empty house premium”. This is an additional charge over and above the full amount of their council tax bill.

Conclusion:

Extensions to main properties require considerable planning, both in terms of being able to meet Permitted Development guidelines as well as those of Building Regulations. Depending on the extent of work to be required, home extensions can also be time-consuming and costly.

However, the addition of living space to your existing property adds to its market value; should you intend to rent or sell it in the future.

With the revaluation of the property at the time of sale, there will be a reassessment by local councils and the Valuation Office Agency to ascertain whether the previous council tax band will remain applicable to the said property as a result of added space due to the extension.

In case, the property is deemed to be elevated in terms of its valuation band, the new owners will be assigned a higher band, resulting in an increased council tax payment.

FAQs: Will An Extension Change Council Tax

Does an extension affect council tax?

Yes, extensions increase your living space and add to the previous market value of a property. As a result, council tax may be affected due to an increase in the market value of the property and a higher valuation band assigned to it. However, these changes take place when the property is being sold.

Will a conservatory increase council tax?

Yes, a conservatory can increase council tax if, at the time of revaluation of the premises, the council tax band is elevated from its previous level. The reason for this is that conservatories increase the market value of properties due to which

How do they determine council tax band?

What is the highest council tax band in the UK?

The maximum value assigned to a property is Band H; allotted to homes valued at more than £320,000 with an approximate annual council tax bill of £ 3,700.

Do home improvements increase council tax?

Indirectly, yes. Home improvements lead to an increase in the value of the property. Once that property is revalued, significant changes may elevate its valuation band for council tax. However, this reassignemnt of council tax bands comes into effect when the propeorty is sold.