Land tax

[Marmablade]

I have looked thoroughly online and I'm unfortunately still unclear what would be the stamp duty payable on a piece of land whilst I own my own home. I would purchase the land with planning permission, build and sell my other house within 3 years. Would I have to pay £17,200 or £7000 SDLT on a piece of land worth £340,000 please?

[ajandjjmum]

I know if you buy one property, and sell your original home within 3 years, you can claim back the extra 3%. Don't know the rule on land - will be watching this thread Marmablade - interesting to us.

[Marmablade]

Yes that's the only advice I can find but not sure how it applies to land with residential planning permission.

[TrinaN]

If you are in England or Wales them the higher rate applies if you buy a second property. Property means building for this. As long as the land does not have any building on it ( i.e. it is not a plot where you demolish existing structure and build a new one) you are basic rate so the lower amount.

If there is a building on the land you have to pay the higher rate and claim back the difference when you sell your current main home if within 3 years.

[TrinaN]

To be fair, if it is an empty plot you can pay it at the commercial stamp duty rate as it is land. That may work out cheaper.

[ajandjjmum]

Thanks Trina - that's helpful to me as well as the OP. By building, a derelict barn would presumably count as a building?

[Marmablade]

Thank you. There's no buildings as they were knocked down 25+ years ago

[CornishMaid1]

@ajandjjmum Yes by building they count any structure that can be used as a residence or which is in the process of being constructed or adapted for use as a residence, so if there is a derelict barn you have a building on it and could face the higher rate of stamp duty.

However, you could try to argue it is currently non-residential property (if it is not habitable) as it is an agricultural building and see what the Revenue say - I have only had to try non-residential for clear plots rather than ones with a building on it so no experience yet on what they would do.