Live in static caravan but buying a flat to rent....stamp duty payable??

Sooz007

I am currently very happily living in a beautiful static caravan but am looking at investing some hard earned cash in an apartment to rent out.

I do own the caravan but no other property. How much stamp duty will I be liable for if I go ahead and purchase a flat to rent out? And can I use this as my 'main' address (putting a mail forwarding in place) as for numerous purposes our caravan address is not usable.

Any advice much welcomed.

Anyone in the same position?

marliepanda

Sooz007 wrote: »

I am currently very happily living in a beautiful static caravan but am looking at investing some hard earned cash in an apartment to rent out.

I do own the caravan but no other property. How much stamp duty will I be liable for if I go ahead and purchase a flat to rent out? And can I use this as my 'main' address (putting a mail forwarding in place) as for numerous purposes our caravan address is not usable.

Any advice much welcomed.

Anyone in the same position?

No you cannot use a rented house as your address. Mail forwarding is time limited, you cant just use it forever, and as you never lived there I am not sure it would even be possible. Plus the tenants will need their own services and having you pretending to live there could cause issues. So no.

Do you pay council tax on the caravan? if so, I imagine it is classed as a property and therefore the second property stamp duty would be payable.

Pixie5740

You will just pay the regular SDLT. There are lots of online calculators available. You only pay the additional SDLT rate if you buy and additional residential property but this will be the one and only residential property you own. HMRC produced a Guidance Note.

I don't know if you can use the rental property as your main address. How long does mail forwarding last? What happens when it runs out? Would you expect the tenants to forward your mail? It might be better to look at alternatives such as a PO Box.

Also see G_M's Guide to Tenancies in England/Wales. It contains information specifically for new landlords as well as other things such as deposits and repairing obligations.

G_M

Pixie5740 wrote: »

... You only pay the additional SDLT rate if you buy and additional residential property but this will be the one and only residential property you own. HMRC produced a Guidance Note.

..........

I'm not sure what the full definition of a "residential property" is in these circumstances.

If the static caravan is on a residential site (residential caravan park etc) and is subject to council tax, I imagine it qualifies, but I'm no expert so either do more research or hope someone else comes along who knows definitively.

davidmcn

G_M wrote: »

I'm not sure what the full definition of a "residential property" is in these circumstances.

If the static caravan is on a residential site (residential caravan park etc) and is subject to council tax, I imagine it qualifies, but I'm no expert so either do more research or hope someone else comes along who knows definitively.

It will (I expect) be the normal SDLT definition of a "major interest". Unless it's a particularly valuable leasehold interest on which the caravan has been plonked I doubt it's going to qualify.

Sooz007

Thanks everyone. We don't pay Council Tax just rates and 'rent' for the pitch to the park, so it would seem that it won't count as a 'property' in this instance.

We have to move out for 2 months each year too into our 26" tourer.

I shall look into a PO box as mail forwarding long term won't be an option.

Thanks again. Very helpful.

Pixie5740

I thought SDLT legislation didn't make specific provision for mobile homes, caravans and houseboats....

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm10023

G_M

So depends if the market value of the caravan OP already owns is £40K+.

Plus:

The definition of 'dwelling' covers any building used or suitable for use as a single dwelling or the in the process of being constructed or adapted for such use.

marliepanda

Sooz007 wrote: »

Thanks everyone. We don't pay Council Tax just rates and 'rent' for the pitch to the park, so it would seem that it won't count as a 'property' in this instance.

We have to move out for 2 months each year too into our 26" tourer.

I shall look into a PO box as mail forwarding long term won't be an option.

Thanks again. Very helpful.

What's rates? (People I know use that to refer to council tax, or water rates)

CIS

Thanks everyone. We don't pay Council Tax just rates and 'rent' for the pitch to the park, so it would seem that it won't count as a 'property' in this instance.

Where in the UK are you ?

If you're in England and Wales (not sure on the caravan situation in Scotland) and you're living in the caravan as your 'sole or main residence' then the valuation office need to band the pitch as a council tax charge would be due from you.

Craig

ProDave

I think the key thing here is he has to move out for 2 months of the year, therefore I suspect the park does not have "residential" status. He in fact has a holiday home that he can use for 10 months of the year, and the other 2 months he has to take a holiday somewhere else. Hence no council tax, no separate address etc. Not even sure how you go about registering to vote in a situation like that?

I assume you can have post delivered to "unit 73, nice holiday park, by the sea,,,," and collect your post from the site office?