SDLT on plots of land

is this the non-residential rate?

Didn't find your answer?

Client is buying some land (on two deeds from one purchaser, but essentially one bit of land) with planning to combine and build a single dwelling.

There is nothing on site at the moment, as the previous 3 dwellings fell into disrepair and have been demolished. 

Client wont be building the one with planning, but is looking to split the deeds in a different ratio and do two. 

I assume this is still "non residential" despite the planning as its just some land right now.  

Replies (4)

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Portia profile image
By Portia Nina Levin
29th Jan 2018 16:22

Yes. There needs to be one or more dwellings on the land, or in course of construction on the land, at the relevant date.

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By ireallyshouldknowthisbut
29th Jan 2018 16:53

Hurrah, thats two posts out of two, if we ignore the previous few hundred that's a 100% record.

I was just making sure mere planning didn't count as "course of construction" presumably they mean some foundation having gone in.

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Replying to ireallyshouldknowthisbut:
Portia profile image
By Portia Nina Levin
29th Jan 2018 17:30

There is an interpretation somewhere that construction must have commenced (ie breaking ground).

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By michaelblake
31st Jan 2018 12:02

The statutory authority is at TCGA 1992 Schedule B1. The higher rate of tax applies to gains arising on the "disposal of a UK residential property interest" defined (broadly) at para 1 as land that has at any time during the relevant period of ownership "consisted of or included a dwelling". Para 4 notes that a building counts as a dwelling at any time it is used or suitable for use as a dwelling or "is in the process of being constructed or adapted for such use". On a plain reading of those words the construction of the dwelling should have started to bring land within the definition, as PNL notes.

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