Stamp duty or not?

Boleyn26

I'm buying a property to live in, with holiday lets, do I pay stamp duty on the entire price of the property?

SDLT_Geek

Boleyn26 said:

I'm buying a property to live in, with holiday lets, do I pay stamp duty on the entire price of the property?

The answer will depend on many factors.  For a start:

Are you buying in England? 
What is the price of the property?
Will you own another property by the time you complete the purchase of this property?

propertyrental

and if you are doing holidayletes, will this be your main and only home?

allconnected

What exactly  are you buying - a house with an annexe or two, a house with extra residential properties  in the grounds, a house with some completely separate holiday lets? The SDLT due will depend on exactly what you’re buying.

Boleyn26

Thank you for all your replies.  We are buying in England.  We would live in the cottage which has 2 holiday lets attached to the building and a separate "stable" building, also a holiday let.  The cottage would be our one and only home .  We are selling two properties to buy the one .  Trying to complete both sales and purchase on same day.  Are there advantages/disadvantages to doing it this way?   
Many thanks

SDLT_Geek

Boleyn26 said:

Thank you for all your replies.  We are buying in England.  We would live in the cottage which has 2 holiday lets attached to the building and a separate "stable" building, also a holiday let.  The cottage would be our one and only home .  We are selling two properties to buy the one .  Trying to complete both sales and purchase on same day.  Are there advantages/disadvantages to doing it this way?   
Many thanks

So what is the purchase price?

Once you complete the two sales and buy this one, will you own any other properties?

Boleyn26

Purchase price is £525,000 and no we will not own any other property.
Thank you.

SDLT_Geek

Boleyn26 said:

Purchase price is £525,000 and no we will not own any other property.
Thank you.

So yes, you will be paying stamp duty land tax on the entire price of the property.  The difficulty is working out the rate of SDLT.  There are various options here:

(a)  Standard residential rates might apply, the holiday lets being buildings within the grounds of the main house.  £13,750.

(b)  Higher residential rates could possibly apply on the basis that you are buying several dwellings, but that depends on the relative value of the units (especially whether the house is worth 2/3 or more of the whole). £29,500.

(c)  Multiple dwellings relief could apply if you are buying several dwellings.

(d)  Mixed property rates could conceivably apply.  Sometimes this is very favourable, but not at this price. £15,750.

Boleyn26

Thank you for your help in this matter.  Lots to consider!