LBTT (Stamp Duty - Scotland) on an annexe

pinklady21

Hello ever helpful people!
I have hunted through the online guidance on this, and cannot find the answer. Possibly I can't it see it for looking!

Anyway - the question is - property I want to buy as a main residence has a self contained annexe.
Is this annexe a second home that would mean the transaction attracts the additional 3% levy on top of usual stamp duty charges?
If so..... is 3% levied on the full amount of the property purchase price including the annexe and the large amount of land that comes with it,
or is it only levied on the perceived value of the annexe?
This may be completely obvious, but my brains are frying to find the answer.
Thank you.

00ec25

there was a change to the rules in England meaning that the annex has to represent a certain % of the overall value of the property in order to count as an additional property

whether Scotland adopted that change is down to you to find out

Pixie5740

The LBTT guidance online isn’t great, you can quite easily end up going round and round in circles trying to follow it.

LBTT10018 - What counts as a dwelling defines a dwelling says, “A building or part of a building counts as a dwelling if it a) is used or is suitable for use as a single dwelling or b) it is in the process of being constructed or adapted for such use.” Therefore it sounds as though you are purchasing two dwellings.

However, LBTT10016-Transactions by individuals seems to suggest that the surcharge might not apply if the annexe dwelling is worth less than £40k.

In conclusion you should probably give Revenue Scotland a call to clarify.

I could well be wrong though.

davidmcn

If it doesn't have planning consent to be used independently of the main house then I wouldn't call it "suitable for use as a single dwelling". I agree if worth less than £40k then the additional rate wouldn't be triggered anyway.