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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10635
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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Re: Application of 3% property tax I own a freehold

Resolved Question:

Dear Sir or madam,
Re: Application of 3% property tax
I own a freehold commercial property - a small hairdresser unit only 17m2 and therefore uninhabitable by the law. I am in the process of buying my first freehold residential property @ £64,000. I was under the impression that is second home property tax applies to those that already own a residential property. However I have just been advised that I now need to pay the 3% tax.
I have checked the the government website and internet and can not find clarity on this matter.
However the closest example I have was found on Zoopla as below. Can you please advise?
Yours faithfully,
Q. Do plots of land count?
A. Just like regular Stamp Duty, the 3% loading will only apply to purchases of residential property. A plot of land (even if it will subsequently be used for a home) is not counted as residential, so the surcharge will never apply.
Similarly, if you already own a plot of land and are buying an additional property, it will not be considered for purposes of the higher tax.
Submitted: 1 year ago.
Category: Law
Expert:  Aston Lawyer replied 1 year ago.

Hi Serena, thanks for your enquiry. As your commercial property is not your "home" (ie a residential property and one in which you are not living) then you are certainly NOT caught by the additional SDLT rate. Therefore, on the basis that you do not own a house already, then no SDLT will be payable on your purchase unless you do NOT intend living there. I hope this assists you and clarifies the legal position. Kind Regards Al

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