Stamp Duty for Outbuildings (to be converted to self contained annexe upon purchase)

Floydsters1 · 10 May 2016 at 1:59PM

My solicitor has just informed me that we may be subject to an additional Stamp duty charge of 3% for the entire purchase of the property, as well as the regular stamp duty charge. Is this correct?

The Outbuildings had planning permission approved in the 90's for conversion to a granny flat, but this work never took place. Therefore surely we are buying a property that does not have an annexe and therefore are exempt from this additional Stamp duty charge?

If anyone could help I'd be very grateful.

Hoploz · 10 May 2016 at 2:02PM

I understand the extra is now only payable if the value of the annexe/outbuilding, whatever you want to call it, is more than 30% of the value of the whole property.

Floydsters1 · 10 May 2016 at 2:07PM

Hoploz wrote: »

I understand the extra is now only payable if the value of the annexe/outbuilding, whatever you want to call it, is more than 30% of the value of the whole property.

Oh right. Thanks for that info. Who do you think puts a value on the outbuildings/(to be converted annexe)?

AnotherJoe · 10 May 2016 at 5:08PM

Surely if the OP buys it with outbuildings, so there is no annex yet, there is no extra SDLT to buy? There's no separate tax on outbuildings AFAIK?

davidmcn · 10 May 2016 at 5:14PM

Lapsed planning permission for a non-existent granny flat does not affect the rate of SDLT payable. You may of course be liable for the additional rate if you own other property.