Stamp duty on holiday let

liveandletlive6346

I sold my house last year and now live and travel in a camper van. I am interested in using the capital from the sale to buy a holiday lodge in England which I could rent out but which me and my family could use occasionally. The property is £80k. I’ve had several legal quotes if I buy, some include stamp duty others not. The .Gov website is not clear and neither is anything on Google. I would just like a definitive answer as to whether I would be liable for the £2500 stamp duty? It’s all so confusing.

davidmcn

Where is the figure of £2500 coming from? Assuming you don't own any other property anywhere, I'd expect it to be charged at normal residential rates - which for the meantime mean zero as it's within the "normal" nil rate band, even if you don't complete before the SDLT "holiday" is over.

liveandletlive6346

I’m told it’s 3% but used to be 8%. Not sure it’s classed as residential as you can’t live in it full time 

SDLT_Geek

I am with davidmcn.  If this will be the only "dwelling" you own then the 3% surcharge does not apply.  You need to allow for properties abroad, the position of any spouse or civil partner and interests owned through trusts, partnerships or minor children. https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09780 

macman

Does the lease allow you to rent it out? 

davidmcn

liveandletlive6346 said:

I’m told it’s 3% but used to be 8%. Not sure it’s classed as residential as you can’t live in it full time 

Even if it were non-residential for SDLT purposes (and I don't think it is), the amount due would still be zero.

liveandletlive6346

Yes I can rent it out, it’s on a holiday park.  

No, I have no other interests in property here or abroad and single so no issues with partner owning anything. 

Thank you both for your comments, it’s exactly what I thought so I was very confused with 2 quotations charging the 3%, Even after double checking they had all the facts.

davidmcn

liveandletlive6346 said:

Yes I can rent it out, it’s on a holiday park.  

No, I have no other interests in property here or abroad and single so no issues with partner owning anything. 

Thank you both for your comments, it’s exactly what I thought so I was very confused with 2 quotations charging the 3%, Even after double checking they had all the facts.

It's probably not an unreasonable starting assumption that somebody buying a holiday home already owns other property, I'm sure in practice it would be sorted whenever anybody starts looking at your transaction properly.