SDLT surcharge

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Discussion

RanchoGrande

Original Poster:

1,151 posts

170 months

Wednesday 15th March 2017
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Hi, does anybody know if you'd be liable for the sdlt surcharge if you have your name on the deeds of a piece of land? Or are you only liable if you have your name against an actual dwelling?

Thanks in advance

R11ysf

1,936 posts

183 months

Friday 17th March 2017
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As is is called Stamp Duty Land Tax I am almost certain it does.

schmunk

4,399 posts

126 months

Friday 17th March 2017
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As it relates only to residential properties, I'm almost certain it doesn't...

https://www.gov.uk/government/publications/stamp-d...

Eric Mc

122,098 posts

266 months

Friday 17th March 2017
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It's probably a bit more complicated than that. Purchase of land would normally be outside the additional charge as the charge relates to residential properties only. And there is a whole raft of tax law and tax cases surrounding what is meant by "residential property".

If the land being purchased already has planning permission for a residential dwelling, then I would expect that it will suffer the additional 3%. If it is a piece of land with no planning permission, then it won't.

I don't know what would happen if land was bought with no planning permission but which later did get planning permission for a dwelling.

RanchoGrande

Original Poster:

1,151 posts

170 months

Friday 17th March 2017
quotequote all
Eric Mc said:
It's probably a bit more complicated than that. Purchase of land would normally be outside the additional charge as the charge relates to residential properties only. And there is a whole raft of tax law and tax cases surrounding what is meant by "residential property".

If the land being purchased already has planning permission for a residential dwelling, then I would expect that it will suffer the additional 3%. If it is a piece of land with no planning permission, then it won't.

I don't know what would happen if land was bought with no planning permission but which later did get planning permission for a dwelling.
The land has been received via inheritance and it has no dwellings nor does it have planning. I was just a little concerned that due to my name being on it I would then be hit with the 3% surcharge in the future when I move house.

Eric Mc

122,098 posts

266 months

Friday 17th March 2017
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I would think not - but you probably should check with someone who knows this area better than me.

Sheepshanks

32,835 posts

120 months

Friday 17th March 2017
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RanchoGrande said:
The land has been received via inheritance and it has no dwellings nor does it have planning. I was just a little concerned that due to my name being on it I would then be hit with the 3% surcharge in the future when I move house.
No, because you'd be replacing your main residence.

Jockman

17,917 posts

161 months

Saturday 18th March 2017
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Sheepshanks said:
RanchoGrande said:
The land has been received via inheritance and it has no dwellings nor does it have planning. I was just a little concerned that due to my name being on it I would then be hit with the 3% surcharge in the future when I move house.
No, because you'd be replacing your main residence.
Yes. It's a key piece of info that you already have the land AND a primary residence. It doesn't matter if you have 100 bits of land and 200 BTLs. Changing your primary residence does not attract enhanced rate sdlt.

RanchoGrande

Original Poster:

1,151 posts

170 months

Saturday 18th March 2017
quotequote all
Jockman said:
Yes. It's a key piece of info that you already have the land AND a primary residence. It doesn't matter if you have 100 bits of land and 200 BTLs. Changing your primary residence does not attract enhanced rate sdlt.
Ah, thanks. I hadn't looked at it like that, I just assumed that you'd be hit with the surcharge if you owned anything else. What would happen if you owned a buy to let but you lived in rented accommodation? Would you be hit with the surcharge if you bought a home as a main residence?

Sarnie

8,055 posts

210 months

Saturday 18th March 2017
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RanchoGrande said:
Ah, thanks. I hadn't looked at it like that, I just assumed that you'd be hit with the surcharge if you owned anything else. What would happen if you owned a buy to let but you lived in rented accommodation? Would you be hit with the surcharge if you bought a home as a main residence?
Yes. Because you would own more properties in total after the purchase....