The Accidental Smallholder Forum

Community => Introduce yourself => Topic started by: Tudful Tamworths on September 24, 2015, 07:22:16 pm

Title: Stamp Duty - residential or business/mixed use?
Post by: Tudful Tamworths on September 24, 2015, 07:22:16 pm

Hello Admin - please move if this is in the wrong place. I'm posting here because it's full of people who have recently bought smallholdings or are thinking of doing so.


I bought my smallholding as a residential property a long time ago, but now I've started looking at new properties, I see the Stamp Duty rules have changed. It now says 2% on the first £125K for residential properties and 1% on the entire amount for business/agricultural/mixed use on properties up to £250K.


What I'm wondering is, if you've bought your smallholding since the new rules came in, what was your property classed as, and how much did you pay?  Thanks for taking the time to read this.

Title: Re: Stamp Duty - residential or business/mixed use?
Post by: Tudful Tamworths on September 24, 2015, 07:23:52 pm

Oh, and sorry I've not been around - too much going on in life, but will be making more of an effort again from now on!

Title: Re: Stamp Duty - residential or business/mixed use?
Post by: mojocafa on September 25, 2015, 06:13:05 am

What a fab question, has intrigued me to do some googling.

I am in Scotland and found this helpful info which advises that you pay lbtt on land valued at over £150,000.  If you scroll down to end, it gives you comparisons from lbtt in Scotland and stamp duty elsewhere for non residential land


I don't think this answers you question but it's an interesting read,  :thinking:





http://www.brodies.com/sites/default/files/lbtt_2.pdf (http://www.brodies.com/sites/default/files/lbtt_2.pdf)

Title: Re: Stamp Duty - residential or business/mixed use?
Post by: JackandJill on September 27, 2015, 01:38:12 pm

Hi, just bought a smallholding in Wales, not used commercially for a long time and had been a pure residential property for over 20 years.  Therefore I was hoping that I would be under the new stamp duty rules.  However, the solicitor updated me that it was mixed use and the stamp duty would be under the old tiered system, so cost me a few extra £'s  :(

Title: Re: Stamp Duty - residential or business/mixed use?
Post by: nikks14 on September 29, 2015, 03:01:10 pm

We are just doing this with a farm house with 10 acers.  Our solicitor has investigatde and is happy to go with residential stamp duty as we are buying it as residential and it is not currently run as a business, and we will not be running as a business.  From HMRC it is a very grey area and depends who you talk to. Hope that helps

Title: Re: Stamp Duty - residential or business/mixed use?
Post by: Tudful Tamworths on November 15, 2015, 11:20:45 pm

Thanks for the replies. Interesting to see different responses. My solicitor is of the same mind as yours, nikks14 - currently not used as a business, so he's saying residential.