PROMOTION Are you paying the correct rate of Stamp Duty? property and mixed use. Specifically, what is considered to be the gardens and grounds of a residential property. A key matter which was subject to a great degree of interpretation in the past. Their commentary goes about making ne of the largest upfront costs outside of the purchase price of buying a property is Stamp Duty Land Tax ("SDLT"). Based on a purchase of £2 million, the SDLT cost could be between £89,500-E213,750 depending on the characteristics of that property. Assuming you purchase it in your personal name. The lowest rates of SDLT being attributable to the purchase of non-residential property or mixed-use property. it potentially harder to argue that a home with substantial land, which is retained with the property for no other reason than to make it more attractive, is considered anything other than residential property. Purchasing a property with a paddock, for example, is unlikely to persuade HMRC that what you are buying is The amount of SDLT payable depends on a anything but residential property unless the paddocks were used for a commercial purpose by the previous owners. Future sa Director at Kreston Reeves number of factors such as: Jo.white@krestonreeves.com there is more than one dwelling on the sito, an Annox for example. Whether it comes with land beyond T: 0330 124 1399 use is irrelevant. www.krestonreeves.com Providing there is sufficient evidence to support the claim being made is correct then it is entirely possible to pay the lower end of the range of SDLT that could be due. When considering the transaction, what is considered nomal for garden and grounds. What the previous owner used it for. KRESTON REEVES Whether there are any commercial eloments to the property for example itis very important that you understand the history of the property and the current use of any non-domestic elements. Expert advice, ideally before completion, is always recommended as trying to obtain further farm buildings or ofces. The SDLT position will also depend on how many other residential property interests you have at the transaction date (often completion) and whether the property can be considered a replacement residence. Given the large variance in SDLT liability, HM Revenue & Customs ("HMRC") will review many claims for the lower payments of SDLT with some information from the vendor once the property is sokd can often be challenging For residential property, where the replacement residence rules do not apply then an extra 3% rate of SDLT can be payable. This can add an extra £60,000 onto my example £2 million property. This could be a temporary payment due to the timing of the sale of your old home and the purchase of the new, but without proper advice it is a substantial cost should the correct liability not be applied. Ifthe incorrect amount is paid, then the window to claim any refund is limited to only 12 months from the filing date of the original return. interest. Enquiries are often raised to better understand why the lower rates of SDLT for non-residential (or mixed-use) property has been claimed, or claims for the purchase of multiple dwellings, as examples. In 2019 HMRC updated their guidance on what is considered residential Kreston Reeves has offices in Brighton, Chichester, Horsham, Worthing, London and Kent. www.krestonreeves.com PROMOTION Are you paying the correct rate of Stamp Duty? property and mixed use. Specifically, what is considered to be the gardens and grounds of a residential property. A key matter which was subject to a great degree of interpretation in the past. Their commentary goes about making ne of the largest upfront costs outside of the purchase price of buying a property is Stamp Duty Land Tax ("SDLT"). Based on a purchase of £2 million, the SDLT cost could be between £89,500-E213,750 depending on the characteristics of that property. Assuming you purchase it in your personal name. The lowest rates of SDLT being attributable to the purchase of non-residential property or mixed-use property. it potentially harder to argue that a home with substantial land, which is retained with the property for no other reason than to make it more attractive, is considered anything other than residential property. Purchasing a property with a paddock, for example, is unlikely to persuade HMRC that what you are buying is The amount of SDLT payable depends on a anything but residential property unless the paddocks were used for a commercial purpose by the previous owners. Future sa Director at Kreston Reeves number of factors such as: Jo.white@krestonreeves.com there is more than one dwelling on the sito, an Annox for example. Whether it comes with land beyond T: 0330 124 1399 use is irrelevant. www.krestonreeves.com Providing there is sufficient evidence to support the claim being made is correct then it is entirely possible to pay the lower end of the range of SDLT that could be due. When considering the transaction, what is considered nomal for garden and grounds. What the previous owner used it for. KRESTON REEVES Whether there are any commercial eloments to the property for example itis very important that you understand the history of the property and the current use of any non-domestic elements. Expert advice, ideally before completion, is always recommended as trying to obtain further farm buildings or ofces. The SDLT position will also depend on how many other residential property interests you have at the transaction date (often completion) and whether the property can be considered a replacement residence. Given the large variance in SDLT liability, HM Revenue & Customs ("HMRC") will review many claims for the lower payments of SDLT with some information from the vendor once the property is sokd can often be challenging For residential property, where the replacement residence rules do not apply then an extra 3% rate of SDLT can be payable. This can add an extra £60,000 onto my example £2 million property. This could be a temporary payment due to the timing of the sale of your old home and the purchase of the new, but without proper advice it is a substantial cost should the correct liability not be applied. Ifthe incorrect amount is paid, then the window to claim any refund is limited to only 12 months from the filing date of the original return. interest. Enquiries are often raised to better understand why the lower rates of SDLT for non-residential (or mixed-use) property has been claimed, or claims for the purchase of multiple dwellings, as examples. In 2019 HMRC updated their guidance on what is considered residential Kreston Reeves has offices in Brighton, Chichester, Horsham, Worthing, London and Kent. www.krestonreeves.com