Do i have to pay stamp duty on a shop?

gehngus_2

Hi All.
My Solicitor says i have to pay Stamp duty on a shop i have just purchased for £75000.
This for my own business. i will not be letting it out.

I was under the impression that the value wasn't high enough. or does this only apply to residential?

I have tried the stamp duty calculator for Non Residential at http://sdccalculator.hmrc.gov.uk and it gives the amount as zero? but some other sites i have seen show a fee of anything up to a whopping 5%

many thanks in advance.

Could someone clarify any of this for me or guide me to the right place to get confirmation before i get back in touch with the solicitor?

beecher2

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

Did you look here? I don't understand what it says regarding rent, but this relevant to your case?

Up to £150,000 - annual rent is £1,000 or more
1%

gehngus_2

Hi.
Yes. I did look here but i don't understand what the rent is about either?

I'm not buying it to rent out so I'm not sure how it applies to my purchase?
many thanks

kingstreet

AIUI if the capital value/purchase price is under £150,000 but the rental value is above £1,000 per annum, the SDLT liability is 1%.

If both the capital value/purchase price is under £150,000 and the rental value is under £1,000 per annum, the SDLT is £nil.

HMRC is trying to catch commercial or mixed property with a low capital value but with a higher rental income potential.

Both capital value and rental value would be calculated by a chartered surveyor.