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Scotsnet

Welcome to Scotsnet - discuss all aspects of life in Scotland, including relocating, schools and local areas.

Land and building tax

2 replies

doesthat · 24/04/2023 14:39

We are looking to purchase a farm yard and house in Scotland.
We already own a home in Scotland which we rent to my parents in law (it's a two bed property that I lived in before I met my husband and had children, too small for us)
We rent the property we currently live in.
The farm yard is up for sale for £325000. It includes many sheds, outbuildings and the opportunity to lease more land from the farmer next door which suits us perfectly as we rent land for animals elsewhere and this would consolidate everything into one spot.
However we don't feel like we can sell our property that my PIL live in.
My parents have offered to pay for the farm house and yard and we pay them rent when we move. However this would then be classed as a second dwelling and they would have to pay additional dwelling supplement which works out at 6% on top of stamp duty and they would factor this into our rental value
Is there any way to avoid this charge or someway reduce it by splitting the purchase price, some classed as commercial and some classed as residential as there is a lot of farm buildings and three acres included in the 325000 purchase price. Thank you

OP posts:
Squashedpotato · 27/04/2023 22:56

Can your PIL buy the home you rent to them?

If the property your PIL live in is in your sole name, could your DH buy the farm in his?

If your parents must buy the farm then they could buy some of it through a business and save paying the additional dwelling tax however, there are business taxes that would need to be paid instead. I think you need three properties for it to be worthwhile.

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