To what does stamp duty apply?

Cludgie

Hi folks, apologies if the answer to this is already out there, but I haven't been able to find it if so.

Basically I've not bought and sold a house in 15 years, so haven't had to deal with stamp duty before. We're now buying a new house off plan in order to create a home which my mum can move in to with us so I can care for her, whilst maintaining space for our family home and a bit of privacy too.

In order to get what we need collectively we're combining the equity from two homes, allowing us to upgrade the specification of the new build.

I've paid a deposit and the paperwork says that the purchase price for the house as planned is £250,000, however we're probably looking at up to another £25,000 in modifications on top of that.

When stamp duty is calculated would it be based on the basic cost of the house as agreed, or the total cost including additions?

Thanks in advance x

00ec25

Cludgie wrote: »

Hi folks, apologies if the answer to this is already out there, but I haven't been able to find it if so. where did you look?

When stamp duty is calculated would it be based on the basic cost of the house as agreed, or the total cost including additions?

it is based on the chargeable consideration (aka price paid)

https://www.gov.uk/stamp-duty-land-tax

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm00200

Pixie5740

00ec25 wrote: »

where did you look?

Down the cludgie perhaps...although if that is the case LBTT would be applicable rather than SDLT.

Slinky

Are you saying the builder is going to do another £25K of adaptations on top of the original £250K making it £275K to buy? Or are you saying you're paying the builder £250K to buy the house, then plan on doing £25K work of your own after that?

Cludgie

Despite the screen name, it is English stamp duty.

Cludgie

Basically whilst the builder is putting it up we want the extras added by them.

So, for instance we've had to move some walls, add a wet room, and amend the kitchen to make everything accessible - there is a cost associated with the changes as it deviates from the original specification, but the contract I've signed with the selling agent states the property price before any changes.

Does that make sense?

Thanks.

davidmcn

If what you're doing is paying £275k at completion for the house with all the extras completed, then the SDLT will be based on £275k. Doesn't matter if they're in separate contracts, they'll be treated as being connected transactions for SDLT purposes.