Reverting House with annexe into one dwelling

stig

SDLT_Geek said:

If multiple dwellings relief was claimed for stamp duty land tax on the purchase (assuming you bought in England) then the works you propose would cause a clawback of that relief.

You’re quite correct, I’d overlooked the clawback, a rather unfair (in my personal opinion!) and one-sided rule that replaces the actual transaction with a theoretical one in certain circumstances. Sorry, Jcqlou!

SDLT_Geek

stig said:

SDLT_Geek said:

If multiple dwellings relief was claimed for stamp duty land tax on the purchase (assuming you bought in England) then the works you propose would cause a clawback of that relief.

You’re quite correct, I’d overlooked the clawback, a rather unfair (in my personal opinion!) and one-sided rule that replaces the actual transaction with a theoretical one in certain circumstances. Sorry, Jcqlou!

The clawback applies to Stamp Duty Land Tax in England.  It is "self-assessed" and so the extra should be paid once the conversion works start.  It is not a matter of waiting until HMRC ask for it.

The rules are different in Wales for Land Transaction Tax, where there is no such clawback.