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Stamp Duty Land Tax On The Granny Annexe

Complicated, but there are exemptions ...

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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!

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 ...


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More about Helen Beaumont ...

Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.

Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.

When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.