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Another Stamp Duty question - the house adjoining us
tree-peony
Posts: 3 Newbie
We live in a semi and are hoping to buy the other half with the intention of knocking through to make one property. Anyone got an idea whether this will incur the 3% surcharge? I've looked around but can't find any references to this scenario!
TIA
TIA
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Comments
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If you are buying another home in addition to the one you already own then I would assume yes, you pay the extra stamp duty. The fact your want to turn it into one dwelling in neither here nor there.0
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and yet granny flats are exempt!0
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What gives you that idea, if you were buying a granny flat you'd be just as liable to pay the extra SD.tree-peony wrote: »and yet granny flats are exempt!0 -
Damn good question that one ! I thought I'd covered all options with my research and notes - dammit !!
My guess is that you pay it on purchase but if you merge it within 36 months that will be a disposal and you can claim it back.
Your solicitor will almost certainly need to refer this one to HMRC for a ruling.
I'd love to know the answer when you find out !Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
I think all that matters is the position as at the date of completion of the purchase - similar principle to residential / non-residential rules (e.g. it's not an additional dwellinghouse if what you're buying isn't yet a house).0
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he has kept up to date with SDLT changes is where he has the idea - he is correct BTW!What gives you that idea, if you were buying a granny flat you'd be just as liable to pay the extra SD.
http://www.theguardian.com/money/2016/apr/16/stamp-duty-u-turn-brings-tax-relief-for-granny-flat-buyers0 -
Thanks Senior Paper Monitor. That was what I thought might be the situation. As it happens I may well move my Mum in to part of the property once the knock through is complete. I will report back if I get any news
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he has kept up to date with SDLT changes is where he has the idea - he is correct BTW!
http://www.theguardian.com/money/2016/apr/16/stamp-duty-u-turn-brings-tax-relief-for-granny-flat-buyers
I don't see anything in that article that suggests the OP wouldn't have to pay the extra SD if they purchased a granny flat rather that the house next door :cool:
The changes are clearly aimed at those selling an existing property then purchasing another which comes with an existing granny flat
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If Senior Paper Monitor hadn't already said it, that was what I was going to suggest. Surely it will come under the 18 month's rule?
The problem may be convincing HMRC that it is one single residential property, that might not be as clear cut as having a through door because there'd be nothing to stop a landlord from buying next door with a locked through door, renting it out and claiming it was one property.
It will need paying at 3% on purchase in any event. xxx0 -
Senior_Paper_Monitor wrote: »My guess is that you pay it on purchase but if you merge it within 18 months that will be a disposal and you can claim it back.
I can't see any disposal involved.0
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