Does the 3% SDLT surcharge apply to the purchase of two residential building plots?
“I am currently acting for a client who is purchasing two residential building plots in a new company name. The directors of the company already own their own homes, so I am wanting to know whether the higher rate of stamp duty land tax would be applied to the purchase of this building plot or whether it would be deemed to be non-residential property by HMRC.
The purchase price is £65,000.00 which is obviously below the stamp duty land tax threshold and the land is currently bare land with no dwellings upon it, but it does have the benefit of outline planning permission for two residential properties.”
The answer to your question is that, provided that construction has not begun, the 3% SDLT surcharge will not apply. The position would be different if it was an ‘off-plan’ purchase.
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.
For more guidance on SDLT please see Ann’s Stamp Duty Land Tax Q&As. This free resource covers a wide range of SDLT queries and they can be filtered by topic to find specific queries of interest.
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