Residential building plot stamp duty tax. What percentage?

[flanagaj]

After 20 years we are finally ready to exchange on our first building plot and I am not sure what SDLT we should be paying.  Our solicitor first said that 350k purchase price equates to 5k, then he said he'd made a mistake and it was actually 7k and now on the final paperwork it's 5k again.

 

I don't think the solicitor has done land sales before.  Sigh.

 

Can anyone actually confirm whether it's 5 or 7k.  We are in rented and we don't own another property.

[MR10]

Try the SDLT calculator https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#!/intro

[flanagaj]

44 minutes ago, MR10 said:

Try the SDLT calculator https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#!/intro

I've checked that, but it wasn't very clear as I'm not sure what a building plot is classed as.  Maybe it doesn't matter and although it's a plot it's simply calculated as residential.

Edited June 6 by flanagaj

[IanR]

1 hour ago, flanagaj said:

Maybe it doesn't matter and although it's a plot it's simply calculated as residential.

 

"non-residential" means the plot has not previously been a residential plot (ie. previous house knocked down or was the garden of a house) AND development has not commenced. Just having planning permission does not make a plot residential.

 

"residential" means either previously residential or development has commenced in line with an Approved planning.

[kandgmitchell]

11 hours ago, flanagaj said:

Maybe it doesn't matter and although it's a plot it's simply calculated as residential.

But it does matter - a lot! It was this forum that saved us £4500 in SDLT as our solicitor had filled in the forms for us and told us it would be £4500. One assumes they know what they are about. I then read a post on here which set me thinking and doing more research. Because our plot was originally agricultural, the tax bands were different and the actual SDLT was zero. After filling in the appropriate forms ourselves, HMRC refunded the lot plus interest. 

[Alan Ambrose]

Yeah should be zero or thereabouts assuming there’s no dwelling there already. Presently agricultural or residential curtilage? Can’t remember whether it makes any difference though. There are so few land sales that most solicitors don’t know the right sdlt treatment.

 

Also they should be doing the appropriate searches and inquiries for land sales (more comprehensive) not residential. Double check that they’ve covered access, visibility splays, all utilities, drainage, contamination, flood risk, CIL, nearness to aonb, article 4 etc etc etc.

 

This has PP now? For something you want to build?

[flanagaj]

Google is my friend.

 

"However, if that plot forms part of the gardens or grounds of an existing dwelling it is deemed to be residential property even if it is bare land. This is because ‘residential property’ means a building used or suitable for use as a dwelling or in the process of being constructed or adapted for such use. Crucially, the grounds or gardens will count as part of the dwelling. So, if the plot you are purchasing forms part of an existing gardens or grounds of a house tax is payable at the residential not non-residential rates."

 

Edited June 7 by flanagaj