The Accidental Smallholder Forum

Smallholding => Buildings & planning => Topic started by: toquark on July 19, 2019, 02:17:37 pm

Title: Land & Buildings Transaction Tax (SDLT) on a Smallholding
Post by: toquark on July 19, 2019, 02:17:37 pm

Hi folks,

Been lurking on the forum for a couple of years now and we're finally in a position to make an offer on a smallholding near us. The place is made up of a farmhouse, outbuildings and c.20ac. Not sure how HMRC will treat it - is it a 'mixed' use property (and subject to the lower tax band) or would it be residential and subject to the higher band and therefore not sure how much to set aside pre purchase. The difference is pretty significant and may affect our ability to purchase.

Does anyone have any experience of buying a smallholding in Scotland since April 2015 and if so how was it treated for tax purchases?

Any help much appreciated!

Title: Re: Land & Buildings Transaction Tax (SDLT) on a Smallholding
Post by: Kiran on September 04, 2019, 02:15:32 pm

May not be much help but we purchased in Walesbin 2018 and the land counts as mixed use and we were taxed as such

Title: Re: Land & Buildings Transaction Tax (SDLT) on a Smallholding
Post by: doganjo on September 05, 2019, 11:33:05 am

Your lawyer should know - its correct name is The Land and Buildings Transaction Tax (LBTT) is a tax applied to residential and commercial land and buildings transactions (including commercial purchases and commercial leases) where a chargeable interest is acquired.
It's all here - https://www.gov.scot/policies/taxes/land-and-buildings-transaction-tax/ (https://www.gov.scot/policies/taxes/land-and-buildings-transaction-tax/)