With much confusion surrounding the tax owed by people with homes comprising of multiple dwellings, let us clear up what the charges mean to you.
Stamp duty charges
In 2016, a new stamp duty charge came into force that meant that any person purchasing a second property would be forced to pay stamp duty land tax, otherwise known as SDLT. This additional tax works out to be significantly higher than the rate they would have paid on their first purchase, which is bad news for anyone who has or is looking to buy multiple homes. However, homeowners with annexes or separate outbuildings were left confused about where they stood amongst this change.
How does it affect my property with a granny flat?
The rules once stated that buyers of properties with multiple dwellings on site would be taxed along the lines of having a second property (i.e. a building that is not their main residence), but since this meant that homeowners would wind up paying far more tax than if they were buying just one property, the government was forced to reassess the situation and come up with a fair compromise.
Following pleas from the public, a set of new rules were introduced by the Treasury indicating that SDLT would only be applicable to those whose additional homes or annexes were worth at least 33 per cent of the total value of the property. This turnaround came as a huge relief for many multiple dwelling owners. See https://www.gov.uk/stamp-duty-land-tax-rates for further details.
Tips for building granny flats
If you are the owner of a property and wish to build your very own bespoke granny annex or flat, a company like Annexe Spaces (http://www.annexespaces.co.uk/) can help you tailor plans to your space and requirements. Companies that specialise in SiPs (structured insulated panels) are able to offer you attractive, useful and energy-efficient living spaces within a set budget and with minimal disruption to your existing residence.
Whether you are looking to build a comfortable space for family, friends or as rental accommodation, choosing a company that has numerous years of experience in their field can help you feel confident about their ability to advise on and create plans for a suitable dwelling that does not breach your stamp duty terms.