**HELP PLEASE** Advice on STAMP DUTY

tillytomcat

I am looking at buying a house, with some extra land nearby from the same vendor.

House price 290000
Land with chicken shed, £70000
Total £360000
Anyway around 3% stamp duty?????

I have £111000 ish in equity when my house sells, if this helps.

mrstinchcombe

Are they not two different sales? So you would pay 3% on the house and 0% on the land (below threshold)?

This is what you need, equity makes no difference:

http://www.hmrc.gov.uk/sdlt/intro/rates-thresholds.htm

googler

All depends on whether or not the HMRC regards them as two linked purchases or not, and there's guidance on this at the link in previous post.

If not, the land can be seperated and attract nil duty.

Whatever happens, the house will be subject to duty at 3.00%, no doubt there.

tillytomcat

I should be able to discuss this with a solicitor as you get the first 10minutes of the discussion free, ith some.

Thank you for your replies if anyone else has any more words of wisdom they also would be much appreciated.

gizmo2_2

If the two purchases involve the same vendor and the same purchaser then they will be linked for SDLT purposes - so tax will be payable on the total amount.

If you google "SDLT mitigation" you will find various organisations offering schemes which claim to mitigate the SDLT. However, these should be considered high risk and are therefore only really worth a punt for higher value purchases.

steve1980

tillytomcat wrote: »

I am looking at buying a house, with some extra land nearby from the same vendor.

House price 290000
Land with chicken shed, £70000
Total £360000
Anyway around 3% stamp duty?????

I have £111000 ish in equity when my house sells, if this helps.

Different address, two different sales.

Out of interest, the land with chicken shed, is it green belt land? Or does it have permission for building? If it is green belt or restricted usage then £70k is a huge amount of money.

gizmo2_2

Look at HMRC's SDLT Manual : http://www.hmrc.gov.uk/manuals/sdltmanual/SDLTM30100.htm


"Linked transaction are those which form part of a single scheme, arrangement or series of transactions between the same vendor and purchaser or, in either case, persons connected with them"

Whether or not there are two addresses/ titles numbers etc is irrelevant. Any solicitor with half a brain will tell you that the purchases here are linked. It also irrelevant that you may have separate contracts for each purchase.

DVardysShadow

gizmo2 wrote: »

Any solicitor with half a brain will tell you that the purchases here are linked.

Those with a complete brain will also charge you £160 to tell you this.

tillytomcat

Thanks for all the advice i do remember looking at this a while ago and the linking of two contracts did come up them, oh well looks like a hefty stamp duty bil will be winging its way to me if we proceed with the purchase.

Out of interest, the land with chicken shed, is it green belt land? Or does it have permission for building? If it is green belt or restricted usage then £70k is a huge amount of money.

Vendor had it valued at this, its a old battery hen shed, single story, 2m-3 high ceiling, (approximately 40-50m in length by 8-10m wide) concrete floor, green belt land attached about 1 acre, in lancashire, 2 miles out of town, any ideas on approx value would be helpful. No planning with it.

bitsandpieces

tillytomcat wrote: »

Thanks for all the advice i do remember looking at this a while ago and the linking of two contracts did come up them, oh well looks like a hefty stamp duty bil will be winging its way to me if we proceed with the purchase.



Vendor had it valued at this, its a old battery hen shed, single story, 2m-3 high ceiling, (approximately 40-50m in length by 8-10m wide) concrete floor, green belt land attached about 1 acre, in lancashire, 2 miles out of town, any ideas on approx value would be helpful. No planning with it.

Doesn't seem cheap for under 2 acres of green belt land. Prices vary a lot from area to area, though - for all I know that may be reasonable in Lancashire.

Also important to think whether it's worth £70,000 to you. What are you planning to do with the land? Would it produce enough food to offer a reasonable return on £70,000, would you be looking to farm commercially, would £70k be worth it for a bigger garden, etc.

pararct

tillytomcat wrote: »

Thanks for all the advice i do remember looking at this a while ago and the linking of two contracts did come up them, oh well looks like a hefty stamp duty bil will be winging its way to me if we proceed with the purchase.



Vendor had it valued at this, its a old battery hen shed, single story, 2m-3 high ceiling, (approximately 40-50m in length by 8-10m wide) concrete floor, green belt land attached about 1 acre, in lancashire, 2 miles out of town, any ideas on approx value would be helpful. No planning with it.

Have you enquired at the local planning office if you do anything with it other than plant things?

Land with PP attached is worth substantially more than without even when that permission has not been realized.

Worth a little chat nothing ventured nothing gained as they say.

You call it 'an old battery hen shed' On that basis I would hazard a guess the structure itself has little value at all.