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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10731
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

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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.

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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