Scope: when is Stamp Duty Land Tax (SDLT) chargeable: higher rate charge for acquisitions of residential property by certain non-natural persons FA03/S55/SCH4A: farmhouses FA03/SCH4A/PARA5F
The 15 per cent higher rate charge will not apply to a transaction which meets the conditions set out below. Instead, SDLT will be charged at the standard rates.
However, a further return and payment of additional SDLT will be required if the relevant rules in Withdrawal of relief (SDLTM09680) below apply.
For the transaction to be charged at the standard rates of SDLT the subject matter must include a higher threshold interest that is, or is to be, a farmhouse and in respect of which the following conditions are met
- the dwelling is to be occupied for the purposes of a qualifying trade of farming by a qualifying farm worker,
- reasonable commercial plans have been made in relation to the ongoing operation of the trade of farming or so that the trade of farming will begin without delay, and
- the occupation is expected to be occupied by the farm worker in the normal course of the trade.
The farmhouse must form part of the land that is occupied for the purposes of a qualifying trade of farming. If a property is occupied by a farm worker but the dwelling is detached from the land used for the farming trade then the higher rate charge will be payable.