A new ‘garden shed tax’ has been flagged by an expert, who has warned that a common mistake could lead to unexpected council tax billsShed in gardenUK households have been warned about the potential new charge.(Image: Getty)

Homeowners across the UK have been warned about a potential change that could affect those with garden sheds. An expert has raised the alarm, cautioning that a common mistake might lead to unexpected council tax bills.

Some homeowners could possibly be unaware of their vulnerability. While this won’t impact everyone, those with certain garden structures are being advised to thoroughly review their situation.

The specialist is now calling it the “new garden shed tax”, claiming it’s becoming increasingly common across Britain.

Sam Jenkinson, from garden building retailer Tiger, disclosed to the Express that the charge may apply when a shed or outbuilding has been converted into a self-contained living space, as reported by the Mirror.

“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 clarified.

Garden shedThe charge may apply if a shed has been converted into a self-contained living space.(Image: Getty)

This means most standard garden sheds and log cabins remain unaffected, though individuals who have installed permanent residential facilities might face additional charges.

“This won’t apply to most people,” Sam stated, “but if your shed has been modified to include full-time living facilities, it could be taxed.”

Local councils are reportedly reviewing planning applications, examining property transactions, and carrying out site inspections to identify structures that could qualify 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.”

Should a shed be found to satisfy the criteria, it may be allocated its own council tax bracket by the Valuation Office Agency. Homeowners however do possess the right to contest the ruling, according to the expert.

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.”

Certain sheds might also be excluded, for instance, those utilised by a dependent family member. Sam suggests verifying with your local authority to establish whether this applies in your situation.

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.”

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