You are here: Home - Household Bills - News -

Homeowners with ‘granny flats’ look set to avoid 3% Stamp Duty surcharge

0
12/04/2016
Property owners with a ‘granny flat’ in their grounds look set to avoid the 3% Stamp Duty surcharge aimed at buy-to-let investors and second homes following an intervention by Sir Eric Pickles.

MPs gathered in the House of Commons yesterday to discuss the details of the Finance Bill which, among other objectives, aims to address the issues of fair taxation.

In the current version of the Stamp Duty surcharge rules, an annex which has separate access to the main property is classed as second home, and will attract the 3% premium if it is valued at more than £40,000. This means that when the owner comes to sell up, prospective buyers face a steeper tax bill because they are a buying the main residence and paying 3% additional Stamp Duty on the value of the granny flat.

The Financial Secretary to the Treasury, David Gauke, has agreed to submit an amendment to the rules ‘to correct the error and ensure fair treatment for annexes’.

Pickles, the former secretary of state for communities and local government, said he was grateful for Gauke’s co-operation.

“It is important in terms of social policy, as annexes are used not only by elderly relatives but by other family members, disabled children with special needs and so on,” said Pickles.

“The government is making an important statement that these annexes should prosper.”

Pickles told Gauke he would be closely scrutinising the details of the amendment.

 

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Pick the right plastic for your summer holiday to save a packet

Many holidaymakers stick to their everyday credit card to pay for goods and services abroad. But by picking the right...

Close