Stamp duty relief multi buy

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    Stamp duty relief multi buy

    I have seen an article today stating you can get relief on stamp duty if buying multiple flats.

    I am in this position and so called HMRC for an answer whether i would pay the stamp duty but they said they would not tell me. Instead they gave me the info on the website and told me to read the examples.

    I am still not sure, so can anyone clarify the position for me. I am thinking i DONT qualify due to only the one freehold.

    Situation = old house converted into 7 flats in 1991. All have their own council tax band, boiler, consumer unit. So all separate flats, but on the one title freehold of the building.

    Buying normally the stamp will be approx £28k on a £475k purchase price. If the relief counts then i pay 3% on 475k divided by 7 = £68k approx per unit. So £2040 stamp per property. £14280 in total..

    #2
    Land Tax is a tax on the transfer of titles in property, so the tax would be due on the value of the title not its component parts.

    Are the flats all leased?
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      Not leased.

      Apparently HMOs fully self contained units qualify for multi relief and so i cannot see why this purchase would not qualify. A house divided into a HMO is one property, but 4 'dwellings".

      Apparently it is all do do with the word "dwelling".

      Been watching some Utube clip on this tax and i think it might qualify, but needs more research.

      Comment


        #4
        The Finance Act 2003 seems to agree with you.

        I'm not sure your HMO example is true of a lot of HMOs, because a dwelling is a unit of property in which one can live (sleep, cook, wash and use a toilet) while most HMO's have shared kitchens and bathrooms with individual bedrooms only.

        A self contained flat would normally be a dwelling.

        I see a solicitor in your future!
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment


          #5
          Yes, but HMRC cannot give advise on this issue, so even solicitors are struggling to understand the issues. Hence i want to learn my position. It seems many people have over paid this stamp duty and there is a company offering to get the refunds for them. So it is a contentious issue.

          Comment


            #6
            There are specialist firms out there who will give you advice if you pay them (based on a quick google).

            HMRC are not there to give tax advice, they are there to collect the maximum amount of tax that they can.
            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

            Comment

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