Stamp Duty Land Tax On The Granny Annexe |
Complicated, but there are exemptions ... |
POSTED BY HELEN BEAUMONT ON 04/01/2019 @ 8:00AM
Many people are buying properties that have a granny annexe or separate area that can be used for family members. Usually, this would be for an elderly relative who can no longer be fully independent, but what Stamp Duty Land Tax (SDLT) is due?
There are specific SDLT exemptions for something like a granny annexe!
copyright: lighthunter / 123rf
Unsurprisingly, this is a complicated area. On top of the normal SDLT due, there are two additional factors that should be considered:
Does a higher rate of SDLT become payable as the granny annexe is a separate property
Can the property benefit from Multiple Dwelling Relief which would reduce the overall SDLT due
Of course, the answer is dependent on the individual situation, but there are things that need to be taken into consideration. For example, is the property which includes the granny annexe actually two separate properties? If so, an additional 3% of SDLT is due on the entire purchase price of both properties.
There are specific exemptions though for something like a granny annexe so it could be that you only pay standard SDLT in some cases. It really is best to ask your tax advisor should you be considering purchasing a property that has a granny annexe.
"Would you like to know more?"
If you'd like to find out more about Stamp Duty Land Tax due on a property with a granny annexe then do give me a call on 01908 774323 or click here to ping me an email and let's see how I can help you.
Until next time ...
HELEN BEAUMONT
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