Latest Public Sector News

27.08.13

‘Common sense’ tax cut for extended families

Family annexes could receive council tax discounts to encourage greater support of extended families, communities secretary Eric Pickles has announced.

Homes with annexes are currently taxed twice. The Government is proposing a 50% discount for all family annexes, as well as removing a community infrastructure levy on self-build properties.

The move could help support both older people and young people having difficulty getting onto the housing ladder, Pickles said, removing barriers to extended families living together.

Family annexes could also help to reduce adult social care costs and help more people to continue living independently.

Pickles said: “I believe the Government should be supporting hard-working families who do the right thing. Removing the family tax penalty on annexes and home improvements will help provide more affordable housing and strengthen the bonds that tie society together.

“By cutting town hall taxes on family annexes, extensions and home improvements, we are supporting aspiration and choice, as well as giving a boost to the construction sector and local traders.

“These common sense tax cuts will increase the provision of affordable housing to those on lower and middle incomes. Encouraging extended families to stay together will reduce social care costs to the taxpayer, and protect independence and dignity for the young and old.”

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