Stamp Duty questions Wales

diver777

I'm looking to buy a residential property (around 100K) in Wales to use as holiday home or sometimes holiday let.  I currently owe commercial property in England (no residential).  my questions are:
1. Would I have to pay Stamp Duty (LLP) and if so, at what rate?
2. if I purchase through limited company, again, would company need to pay LLP?
3. Would the Stamp Duty holiday affect what I have to pay?
I just wonder if that commercial property counts as 'another/second property'.

[Deleted User]

diver777 said:

I'm looking to buy a residential property (around 100K) in Wales to use as holiday home or sometimes holiday let.  I currently owe commercial property in England (no residential).  my questions are:
1. Would I have to pay Stamp Duty (LLP) and if so, at what rate?
2. if I purchase through limited company, again, would company need to pay LLP?
3. Would the Stamp Duty holiday affect what I have to pay?
I just wonder if that commercial property counts as 'another/second property'.

It's not Stamp Duty or LLP it is LTT (Land Transaction Tax).

When you say commercial property do you mean offices, restaurant, actual commercial premises or a residential dwelling which you let?

1. Depends on whether the commercial property is really a commercial property or a residential dwelling.

2. The Welsh rules for LTT are similar to the English rules for SDLT in that companies will pay the higher rate of LTT regardless of the company not owning any other property already.

3. SDLT holiday has nothing to do with LTT.

The Welsh Government has lots of information readily available online about LTT and the higher rates.

https://gov.wales/land-transaction-tax-guide

https://gov.wales/higher-rates-purchases-residential-property-technical-guidance#section-27899

SDLT_Geek

Lover_of_Lycra said:

diver777 said:

I'm looking to buy a residential property (around 100K) in Wales to use as holiday home or sometimes holiday let.  I currently owe commercial property in England (no residential).  my questions are:
1. Would I have to pay Stamp Duty (LLP) and if so, at what rate?
2. if I purchase through limited company, again, would company need to pay LLP?
3. Would the Stamp Duty holiday affect what I have to pay?
I just wonder if that commercial property counts as 'another/second property'.

It's not Stamp Duty or LLP it is LTT (Land Transaction Tax).

When you say commercial property do you mean offices, restaurant, actual commercial premises or a residential dwelling which you let?

1. Depends on whether the commercial property is really a commercial property or a residential dwelling.

2. The Welsh rules for LTT are similar to the English rules for SDLT in that companies will pay the higher rate of LTT regardless of the company not owning any other property already.

3. SDLT holiday has nothing to do with LTT.

The Welsh Government has lots of information readily available online about LTT and the higher rates.

https://gov.wales/land-transaction-tax-guide

https://gov.wales/higher-rates-purchases-residential-property-technical-guidance#section-27899

I agree with @lover_of_lycra.

At a price of around £100,000, OP would pay no LTT if buying personally when having no interests in any other residential properties anywhere in the world.  (Allowing for any spouse, civil partner, etc.)

If OP's limited company buys the property then LTT would be due at 4%.  (For LTT the surcharge for additional properties and properties acquired by companies is 4%, rather than 3% as for SDLT.)

diver777

Lover_of_Lycra said:

diver777 said:

I'm looking to buy a residential property (around 100K) in Wales to use as holiday home or sometimes holiday let.  I currently owe commercial property in England (no residential).  my questions are:
1. Would I have to pay Stamp Duty (LLP) and if so, at what rate?
2. if I purchase through limited company, again, would company need to pay LLP?
3. Would the Stamp Duty holiday affect what I have to pay?
I just wonder if that commercial property counts as 'another/second property'.

It's not Stamp Duty or LLP it is LTT (Land Transaction Tax).

When you say commercial property do you mean offices, restaurant, actual commercial premises or a residential dwelling which you let?

1. Depends on whether the commercial property is really a commercial property or a residential dwelling.

2. The Welsh rules for LTT are similar to the English rules for SDLT in that companies will pay the higher rate of LTT regardless of the company not owning any other property already.

3. SDLT holiday has nothing to do with LTT.

The Welsh Government has lots of information readily available online about LTT and the higher rates.

LTT of course, sorry about that and thanks for the links.
It's still a bit confusing. The property I'm looking to purchase is less than 250k, however it's not going to be my main residence home.  I'll be using it for weekends and to let out, basically holiday home, but I won't live there permanently.  So I just wonder if this higher LTT rates will apply to me.  After all its £4000 tax on the property of 100k.
The commercial property I own is not residential, it's office/workshop and I don't own any residential property, neither my partner (we are planning to buy it jointly).

SDLT_Geek

If you and your partner have no interests in other residential properties, then the 4% surcharge should not apply and there should be no LTT at this price level if you buy personally.

There is an odd rule in Wales (with no equivalent in the SDLT rules) which can apply where one sells a main residence, then buys a property not intending to live in it, but then later buys another property to live in.  The rule is that, even though there is no surcharge on the interim purchase at the time of the purchase, there is a "catch up" charge on it once the replacement home is bought.  Very complicated!  OP, you do not say if you have sold a home and whether you intend to buy another, so this might not be of relevance to you.

[Deleted User]

diver777 said:

Lover_of_Lycra said:

diver777 said:

I'm looking to buy a residential property (around 100K) in Wales to use as holiday home or sometimes holiday let.  I currently owe commercial property in England (no residential).  my questions are:
1. Would I have to pay Stamp Duty (LLP) and if so, at what rate?
2. if I purchase through limited company, again, would company need to pay LLP?
3. Would the Stamp Duty holiday affect what I have to pay?
I just wonder if that commercial property counts as 'another/second property'.

It's not Stamp Duty or LLP it is LTT (Land Transaction Tax).

When you say commercial property do you mean offices, restaurant, actual commercial premises or a residential dwelling which you let?

1. Depends on whether the commercial property is really a commercial property or a residential dwelling.

2. The Welsh rules for LTT are similar to the English rules for SDLT in that companies will pay the higher rate of LTT regardless of the company not owning any other property already.

3. SDLT holiday has nothing to do with LTT.

The Welsh Government has lots of information readily available online about LTT and the higher rates.

LTT of course, sorry about that and thanks for the links.
It's still a bit confusing. The property I'm looking to purchase is less than 250k, however it's not going to be my main residence home.  I'll be using it for weekends and to let out, basically holiday home, but I won't live there permanently.  So I just wonder if this higher LTT rates will apply to me.  After all its £4000 tax on the property of 100k.
The commercial property I own is not residential, it's office/workshop and I don't own any residential property, neither my partner (we are planning to buy it jointly).

From the link  to the Higher Rates for the purchases of residential property: technical guidance, it says...

LTTA/8020 The higher rates conditions for individuals
(paragraphs 3, 11 and 20 Schedule 5)
Higher rates apply to a transaction according to specified conditions. These conditions differ depending on whether the buyer is an individual buying a single dwelling, an individual buying 2 or more dwellings or where the buyer is not an individual (e.g. a company).
Individuals buying a single dwelling
Where the buyer, or each of the buyers is an individual buying a single dwelling the conditions are:

• the buyer, or buyers, are all individuals

• the main subject matter of the transaction is a major interest in a dwelling

• the chargeable consideration given for that major interest is £40,000 or more

• the buyer, or one of the buyers, or their spouse or civil partner that they live with, has a major interest in another dwelling at the end of the day of the effective date of the transaction (including a major interest which has been purchased for a minor child), and

• the interest in that other dwelling has a market value, on the effective date of the acquisition of the major interest in the new dwelling, of £40,000 or more

• the interest acquired is not subject to a lease for an unexpired term of more than 21 years to someone who is not connected with the buyer

Do you meet the requirements for paying the higher rate of LTT?

diver777

Thanks for great replies.  It seems higher rate LTT might not apply to my purchase.  I wonder whether I should get lawyer/conveyancer in Wales or local one could do the job as well (West Midlands).