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Advice on whether to claim MDR for SDLT

Can anyone advise as to whether MDR is claimable in this instance

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A client is in the process of purchasing a property, along with this property is an Annex above a double garage.

It has a seperate entrance away from the main residence, it has a toilet and shower room and a living space, its a seperate building in essence.

However, it does not have a kitchen, what it does have, is a microwave and portable gas hob burners.

When looking at FA03/SCH6B/PARA7 it states that "For the purposes of the relief a “dwelling” means a building or part of a building which is suitable for use as a single dwelling or is in the process of being constructed or adapted for such use."

My concern rests with whether MDR would be allowable, even if there is no fixed kitchen area (the ability to add one is possible) however, for everything else, this annex could be lived in independantly and away from the main residence.

Id apreciate anyones opinion as to whether MDR is claimable in this instance?


Replies (4)

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By Vile Nortin Naipaan
13th May 2019 11:26

It would appear to be "suitable for use as" a dwelling. Why is the purchaser purchasing two dwellings though? What are the intentions for the annex?

Thanks (1)
Replying to Vile Nortin Naipaan:
By SXGuy
13th May 2019 11:42

The purchaser is purchasing the main property, it just happened to be an added bonus, that there was an annex above the double garage, his solicitor advised that it "could" be considered a separate dwelling given the above. Up until that point, he hadn't considered the possibility of using it as such, and that is when he contacted me to ask for advice as to whether his solicitor should go ahead with the MDR claim.

I was unsure whether it met the criteria given the lack of a fixed kitchen area, but had food making facilities.

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Replying to SXGuy:
By Vile Nortin Naipaan
13th May 2019 11:50

Well, I'd be inclined to make the claim, unless the purchaser plans to reincorporate it as part of the main building within the next three years (which would then require a further return to pay back the MDR).

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By JohnShallcross
21st May 2019 17:53

As part of considering whether the annex is suitable for use as a separate dwelling, the services should also be considered, such as the heating, electricity and hot and cold water. Are they capable of independent operation and isolation? What is the permitted planning use of the annex? Would it breach the planning for someone to live in it as a single dwelling?

Does the "kitchen" have hot and cold water and a sink with drainage?

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