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    • Sooz007
    • By Sooz007 20th Mar 17, 3:36 PM
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    Sooz007
    Live in static caravan but buying a flat to rent....stamp duty payable??
    • #1
    • 20th Mar 17, 3:36 PM
    Live in static caravan but buying a flat to rent....stamp duty payable?? 20th Mar 17 at 3:36 PM
    I am currently very happily living in a beautiful static caravan but am looking at investing some hard earned cash in an apartment to rent out.

    I do own the caravan but no other property. How much stamp duty will I be liable for if I go ahead and purchase a flat to rent out? And can I use this as my 'main' address (putting a mail forwarding in place) as for numerous purposes our caravan address is not usable.

    Any advice much welcomed.

    Anyone in the same position?
Page 1
    • marliepanda
    • By marliepanda 20th Mar 17, 3:44 PM
    • 4,356 Posts
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    marliepanda
    • #2
    • 20th Mar 17, 3:44 PM
    • #2
    • 20th Mar 17, 3:44 PM
    I am currently very happily living in a beautiful static caravan but am looking at investing some hard earned cash in an apartment to rent out.

    I do own the caravan but no other property. How much stamp duty will I be liable for if I go ahead and purchase a flat to rent out? And can I use this as my 'main' address (putting a mail forwarding in place) as for numerous purposes our caravan address is not usable.

    Any advice much welcomed.

    Anyone in the same position?
    Originally posted by Sooz007
    No you cannot use a rented house as your address. Mail forwarding is time limited, you cant just use it forever, and as you never lived there I am not sure it would even be possible. Plus the tenants will need their own services and having you pretending to live there could cause issues. So no.

    Do you pay council tax on the caravan? if so, I imagine it is classed as a property and therefore the second property stamp duty would be payable.
    Survey Earnings 2017 - 163
    • Pixie5740
    • By Pixie5740 20th Mar 17, 3:44 PM
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    Pixie5740
    • #3
    • 20th Mar 17, 3:44 PM
    • #3
    • 20th Mar 17, 3:44 PM
    You will just pay the regular SDLT. There are lots of online calculators available. You only pay the additional SDLT rate if you buy and additional residential property but this will be the one and only residential property you own. HMRC produced a Guidance Note.

    I don't know if you can use the rental property as your main address. How long does mail forwarding last? What happens when it runs out? Would you expect the tenants to forward your mail? It might be better to look at alternatives such as a PO Box.

    Also see G_M's Guide to Tenancies in England/Wales. It contains information specifically for new landlords as well as other things such as deposits and repairing obligations.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • G_M
    • By G_M 20th Mar 17, 3:57 PM
    • 39,201 Posts
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    G_M
    • #4
    • 20th Mar 17, 3:57 PM
    • #4
    • 20th Mar 17, 3:57 PM
    ... You only pay the additional SDLT rate if you buy and additional residential property but this will be the one and only residential property you own. HMRC produced a Guidance Note.

    ..........
    Originally posted by Pixie5740
    I'm not sure what the full definition of a "residential property" is in these circumstances.

    If the static caravan is on a residential site (residential caravan park etc) and is subject to council tax, I imagine it qualifies, but I'm no expert so either do more research or hope someone else comes along who knows definitively.
    • davidmcn
    • By davidmcn 20th Mar 17, 4:04 PM
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    davidmcn
    • #5
    • 20th Mar 17, 4:04 PM
    • #5
    • 20th Mar 17, 4:04 PM
    I'm not sure what the full definition of a "residential property" is in these circumstances.

    If the static caravan is on a residential site (residential caravan park etc) and is subject to council tax, I imagine it qualifies, but I'm no expert so either do more research or hope someone else comes along who knows definitively.
    Originally posted by G_M
    It will (I expect) be the normal SDLT definition of a "major interest". Unless it's a particularly valuable leasehold interest on which the caravan has been plonked I doubt it's going to qualify.
    • Sooz007
    • By Sooz007 20th Mar 17, 4:10 PM
    • 9 Posts
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    Sooz007
    • #6
    • 20th Mar 17, 4:10 PM
    • #6
    • 20th Mar 17, 4:10 PM
    Thanks everyone. We don't pay Council Tax just rates and 'rent' for the pitch to the park, so it would seem that it won't count as a 'property' in this instance.

    We have to move out for 2 months each year too into our 26" tourer.

    I shall look into a PO box as mail forwarding long term won't be an option.

    Thanks again. Very helpful.
    • Pixie5740
    • By Pixie5740 20th Mar 17, 4:11 PM
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    Pixie5740
    • #7
    • 20th Mar 17, 4:11 PM
    • #7
    • 20th Mar 17, 4:11 PM
    I thought SDLT legislation didn't make specific provision for mobile homes, caravans and houseboats....

    https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm10023
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • G_M
    • By G_M 20th Mar 17, 4:11 PM
    • 39,201 Posts
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    G_M
    • #8
    • 20th Mar 17, 4:11 PM
    • #8
    • 20th Mar 17, 4:11 PM
    So depends if the market value of the caravan OP already owns is 40K+.

    Plus:

    The definition of 'dwelling' covers any building used or suitable for use as a single dwelling or the in the process of being constructed or adapted for such use.
    • marliepanda
    • By marliepanda 20th Mar 17, 4:13 PM
    • 4,356 Posts
    • 8,590 Thanks
    marliepanda
    • #9
    • 20th Mar 17, 4:13 PM
    • #9
    • 20th Mar 17, 4:13 PM
    Thanks everyone. We don't pay Council Tax just rates and 'rent' for the pitch to the park, so it would seem that it won't count as a 'property' in this instance.

    We have to move out for 2 months each year too into our 26" tourer.

    I shall look into a PO box as mail forwarding long term won't be an option.

    Thanks again. Very helpful.
    Originally posted by Sooz007
    What's rates? (People I know use that to refer to council tax, or water rates)
    Survey Earnings 2017 - 163
    • CIS
    • By CIS 20th Mar 17, 4:20 PM
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    • 5,580 Thanks
    CIS
    Thanks everyone. We don't pay Council Tax just rates and 'rent' for the pitch to the park, so it would seem that it won't count as a 'property' in this instance.
    Where in the UK are you ?

    If you're in England and Wales (not sure on the caravan situation in Scotland) and you're living in the caravan as your 'sole or main residence' then the valuation office need to band the pitch as a council tax charge would be due from you.

    Craig
    I no longer work in Council Tax Recovery as I'm now a self employed Council Tax advisor and consultant with my own Council Tax consultancy business. My views are my own reading of the law and you should always check with the local authority in question.
    • ProDave
    • By ProDave 20th Mar 17, 5:01 PM
    • 108 Posts
    • 174 Thanks
    ProDave
    I think the key thing here is he has to move out for 2 months of the year, therefore I suspect the park does not have "residential" status. He in fact has a holiday home that he can use for 10 months of the year, and the other 2 months he has to take a holiday somewhere else. Hence no council tax, no separate address etc. Not even sure how you go about registering to vote in a situation like that?

    I assume you can have post delivered to "unit 73, nice holiday park, by the sea,,,," and collect your post from the site office?
    • davidmcn
    • By davidmcn 20th Mar 17, 5:06 PM
    • 5,128 Posts
    • 4,765 Thanks
    davidmcn
    Not even sure how you go about registering to vote in a situation like that?
    Originally posted by ProDave
    Even the homeless can register to vote, so I doubt it's a problem.

    I presume "rates" are the caravan park's apportionment of their commercial rates for the whole site.
    • CIS
    • By CIS 20th Mar 17, 5:21 PM
    • 9,759 Posts
    • 5,580 Thanks
    CIS
    I think the key thing here is he has to move out for 2 months of the year, therefore I suspect the park does not have "residential" status. He in fact has a holiday home that he can use for 10 months of the year, and the other 2 months he has to take a holiday somewhere else. Hence no council tax, no separate address etc. Not even sure how you go about registering to vote in a situation like that?
    The actual status of the caravan park doesn't matter too much - the key is whether the caravan is being occupied as someone's 'sole or main residence'. Occupation of caravans on holiday sites has been found to be sufficient for council tax purposes where the 'sole or main residence' criteria has been met.

    Craig
    I no longer work in Council Tax Recovery as I'm now a self employed Council Tax advisor and consultant with my own Council Tax consultancy business. My views are my own reading of the law and you should always check with the local authority in question.
    • xylophone
    • By xylophone 20th Mar 17, 6:30 PM
    • 21,277 Posts
    • 12,217 Thanks
    xylophone
    into our 26" tourer.
    Honey, I shrank the campers?
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