Does SDLT apply to the acquisition of a holiday chalet?

“My client is purchasing a holiday home (so, a second home) and the building itself is a wooden chalet structure, which is deemed to be a temporary structure. Does he just pay SDLT on the value of the land, minus the value of the temporary structure?”

Source: BLG Member 


In order to be chargeable to SDLT the chalet must be a fixture and therefore form part of the land.  This is a question of fact and there are no special SDLT rules. I assume the chalet has foundations, some mains services and would be difficult to move without causing damage.

In the Stamp Duty Land Tax Manual (at SDLTM20023) HMRC say:

‘The Courts have held that, if the object is in the nature of a dwelling, it is likely that it has been erected with a view to the enjoyment of the property as a whole and therefore constitutes part of the land.

This is likely to be the case even if the object itself is in kit form and could be dismantled and re-erected elsewhere, or if it is not actually affixed to the land but rests on its foundations under its own weight.’

If the chalet is a fixture (as, in my view, is likely) the amount paid for it will chargeable to SDLT in addition to the amount paid for the land element of the purchase.  The 3% SDLT surcharge will apply.

If the chalet is not a fixture, a ‘just and reasonable’ apportionment between the chalet and the land must be made to determine how much of the total consideration relates to the chargeable and non-chargeable elements.

At the time of publication this response was correct however as tax legislation and practice change from time-to-time you should take specific advice before taking any action.

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