Stamp duty on building plot

[Kevan Marshall]

Hi,

I am in the process of buying a plot, there is an old wooden shack on it that is uninhabitable, I have received outline planning and can knock down and build on the plot, one of the reasons I received planning was the fact that the planners agreed that the house could not be renovated or ever lived in again, would this class the plot as non residential because the shack is uninhabitable which would make it exempt from Stamp Duty, I know I have got three years to build and shall have to sell my house I am living in within this period to claim back SD but it would help with funds if I was exempt from paying it?

 

Kind regards,

Kevan

[Alan Ambrose]

Well that’s an interesting, and I think technical, legal/tax question. I think that only a specialist land lawyer/tax person can tell you for sure. My guess would be yes, it gets the stamp duty for land rather than dwellings, which will be less. The cost of locating an appropriately competent person may be greater than the tax though 😃. Any random conveyancer probably won’t be able to tell you though and will sway towards stamp duty for dwellings because that’s what they know best.

Edited September 1 by Alan Ambrose

[Kevan Marshall]

28 minutes ago, Alan Ambrose said:

Well that’s an interesting, and I think technical, legal/tax question. I think that only a specialist land lawyer/tax person can tell you for sure. My guess would be yes, it gets the stamp duty for land rather than dwellings, which will be less. The cost of locating an appropriately competent person may be greater than the tax though 😃. Any random conveyancer probably won’t be able to tell you though and will sway towards stamp duty for dwellings because that’s what they know best.

Thank you Alan,

My Solicitor shall just say pay it, HMRC have a phone number I can ring so I’ll give them a ring when I get a chance….

[Alan Ambrose]

This may help - the stamp duty for dwellings is zero up to £50K value I believe- I did a little transaction that was just below that amount.

 

Also, this article is a bit clearer and I think your solicitor is just being lazy at your expense:

 

https://www.ukpropertyaccountants.co.uk/complete-guide-stamp-duty-on-uninhabitable-property/

 

See if that convinces them.

[Kevan Marshall]

44 minutes ago, Alan Ambrose said:

This may help - the stamp duty for dwellings is zero up to £50K value I believe- I did a little transaction that was just below that amount.

 

Also, this article is a bit clearer and I think your solicitor is just being lazy at your expense:

 

https://www.ukpropertyaccountants.co.uk/complete-guide-stamp-duty-on-uninhabitable-property/

 

See if that convinces them.

Thank you Alan, very interesting reading!

[Kevan Marshall]

On 01/09/2025 at 07:40, Alan Ambrose said:

This may help - the stamp duty for dwellings is zero up to £50K value I believe- I did a little transaction that was just below that amount.

 

Also, this article is a bit clearer and I think your solicitor is just being lazy at your expense:

 

https://www.ukpropertyaccountants.co.uk/complete-guide-stamp-duty-on-uninhabitable-property/

 

See if that convinces them.

Hi Alan,

Went to my solicitor today and he is not charging stamp duty due to the present house being uninhabitable and it needs demolished so that’s saved me 4k!

 

kind regards,

kevan

[Pendicle]

Hi @Kevan Marshall sorry I did not see your post sooner. I was in the same position bought an uninhabitable house Scotland although we are just outside Glasgow. No stamp duty although you find saving now you will definitely spend later, but the wee wins feels good. Although our solicitor told us to keep the monies that could be owed to one side incase HMRC question it later and keep photos of existing state of building and any surveys we do as evidence, I also had an email chain with planning who also deemed the house uninhabitable just incase. Know one’s come knocking yet, although I don’t have door just a big hole in the ground! Good luck to you

[Alan Ambrose]

@Kevan Marshall that’s great, congrats.

[Kevan Marshall]

On 19/09/2025 at 13:25, Pendicle said:

Hi @Kevan Marshall sorry I did not see your post sooner. I was in the same position bought an uninhabitable house Scotland although we are just outside Glasgow. No stamp duty although you find saving now you will definitely spend later, but the wee wins feels good. Although our solicitor told us to keep the monies that could be owed to one side incase HMRC question it later and keep photos of existing state of building and any surveys we do as evidence, I also had an email chain with planning who also deemed the house uninhabitable just incase. Know one’s come knocking yet, although I don’t have door just a big hole in the ground! Good luck to you

 

[Kevan Marshall]

Just now, Kevan Marshall said:

 

 

[Kevan Marshall]

Just now, Kevan Marshall said:

 

 

[Kevan Marshall]

On 19/09/2025 at 13:25, Pendicle said:

Hi @Kevan Marshall sorry I did not see your post sooner. I was in the same position bought an uninhabitable house Scotland although we are just outside Glasgow. No stamp duty although you find saving now you will definitely spend later, but the wee wins feels good. Although our solicitor told us to keep the monies that could be owed to one side incase HMRC question it later and keep photos of existing state of building and any surveys we do as evidence, I also had an email chain with planning who also deemed the house uninhabitable just incase. Know one’s come knocking yet, although I don’t have door just a big hole in the ground! Good luck to you

It is definitely uninhabitable…