UK households warned of 'new garden shed tax' - check if you're affected

UK households have been warned about a potential new charge that could affect people with sheds in their garden. The concern has been raised by an expert who says a common mistake could lead to unexpected council tax bills, and some may not even realise they're at risk.

While this won't apply to everyone, those with certain types of garden buildings have been told to check their situation carefully. The expert is now calling it the "new garden shed tax", and says it's becoming more common across parts of the UK.

According to Sam Jenkinson, from garden building retailer Tiger, the charge can apply if a shed or outbuilding has been converted into a self-contained living space.

"Government guidance states that a property is considered a separate dwelling and can therefore be assigned its own council tax band if it includes an independent entrance, a kitchen, and a bathroom," Sam explained.

That means most ordinary garden sheds and log cabins won't be affected, but some people who have added full-time living facilities could face an extra charge.

"This won't apply to most people," Sam said, "but if your shed has been changed to include full-time living facilities, it could be taxed."

Local councils are said to be checking planning applications, reviewing sales of properties, and even carrying out inspections to identify buildings that may count as separate homes.

"When planning applications are submitted, councils may review them to determine whether a shed could be classified as a separate dwelling," Sam added. "Similarly, when a property changes ownership, councils can review its classification."

If a shed is found to meet the criteria, it could be given its own council tax band by the Valuation Office Agency.

Homeowners do have the right to challenge the decision. Sam said: "If your shed is reclassified as a separate dwelling and you believe this is incorrect, you have the right to appeal."

"You can provide evidence such as photographs or floor plans to demonstrate that the shed does not have the necessary facilities to qualify as a separate home."

Some sheds may also be exempt, for example, those used by a dependent relative. Sam recommends checking with your local council to confirm if this applies in your case.

He added: "Garden rooms are great for hobbies, working from home, or entertaining, but they can't be used as permanent self-contained accommodation without planning permission."

"Adding a bedroom, kitchen or bathroom could mean you need both planning permission and building regulations approval."