Buying Parking & Flat Separately - Managing Stamp Duty

izsushant

Hey,

I have found a flat and it comes with parking. The vendor is looking for £270-275k and the flat includes a parking space.

I want to buy but the price is above £250k, I will be charged the stamp duty. I wanted to know if it's possible to buy the parking and flat separately so as to avoid paying 3% stamp. Anyone have any ideas about this or done it before?

Help appreciated,
Thanks

System

I would think it's only possible if the flat and parking space are on separate leases/deeds

izsushant

!!!!!! wrote: »

I would think it's only possible if the flat and parking space are on separate leases/deeds

Thanks a lot. That is what I thought but wanted to double check if anyone has done something about it. Any way to separate these out when we purchase?

martindow

Assuming they can be bought separately, if you buy both at the same time or close together they will be considered as linked transactions and tax will be payable on the total.

I suspect the seller is in cloud cuckoo land and is going to be offered £250k.

izsushant

martindow wrote: »

Assuming they can be bought separately, if you buy both at the same time or close together they will be considered as linked transactions and tax will be payable on the total.

I suspect the seller is in cloud cuckoo land and is going to be offered £250k.

Hrm you are right on the linked transactions part -

Just saw this "Under section 108 FA2003, transactions are linked if they are between the same vendor and purchaser, or in either case, persons connected with them. This means that SDLT will be calculated with reference to the total consideration given on all properties transferred between the same vendor and purchaser, regardless of whether they have separate deeds, or the time elapsed between the transfers. Therefore SDLT will be payable at 3% on both the apartment and the parking space."

As for offer price, sadly the flat is in London and there isn't any way of reducing the asking price. The seller has had offers for £265k but I have been told it's mine for £270k :think: