SLDT Stamp Duty - MDR Multiple Dwellings Relief - First time buyers

mattcole89

SDLT_Geek wrote: »

See the comments on the SDLT aspects above in purple.

Thank you so much for your reply.

I'm new to forums so couldn't work out how to do multiple quotes so have sent a reply as a separate post below!

Thanks again, Matt

CIS

I am inclined to think that it wouldnt have had planning permission to be used as a separate dwelling. Our understanding is that it has only ever been used by the family who lived there so wouldnt have been rented out. You can see evidence of a doorway which once linked the 2 properties - i wonder whether they got planning permission for an extension to the original property then just blocked the doorway off! I will look into this tomorrow. Again, the fact that only 1 lot of council tax is paid and it is listed on the land registry as being just 1 property leads me to believe that it never had planning consent for use as a separate dwelling. Regarding utility bills - i dont know if they are billed separately but had assumed they would be considering they have separate supplies.

Planning permission has no bearing on council tax - a property can be a residential dwelling even if not correctly created.

The annexe as described would almost certainly fall to be a dwelling for council tax purposes and should be banded separately. It should be noted that the fact it may have been missed previously does not prevent the banding being applied at a later and backdated where required.

Whether or not it's habitable isn't particularly relevant either - to be uninhabitable to the point it is no longer a residential dwelling would require it to be little more than a shell with no roof. As long as it's structurally sound and relatively watertight it would remain a dwelling.

SDLT_Geek

mattcole89 wrote: »

Sorry - not questioning you but how would SDLT come to £6,600 in this instance?
SDLT is calculated using the non-residential rates, so 0% on the first £150K, 2% on the next £100,000 (£2,000) and at 5% on the rest (£4,600) to give £6,600.

Also, if the annexe were not classed as a dwelling, would this not mean that we would only be purchasing the property as a whole and therefore be entitled to first time buyers relief as it is not actually 2 dwellings?
First time buyers' relief is only available if the transaction comprises a single dwelling. So if the facts are that the property is not a single dwelling then the relief is not available.

See points above on the treatment if the property does not, on the facts, comprise a single dwelling.

SDLT_Geek

OP / Matt, how did you get on in the end?