SDLT - higher rates for additional dwellings: When the higher rates will not apply
The higher rates will not apply to purchases of:
- non-residential or mixed use properties;
- transactions where the consideration is less than £40,000 [Paras 3(2), 4(c), 5(2), 6(1)(c) and 7(1)(c)]; and
- caravans, houseboats and mobile homes.
Caravans, houseboats and mobile homes are usually chattels and any payment in respect of the plot is usually for a license, they are therefore not usually chargeable to SDLT. If a moveable asset such as this becomes sufficiently fixed to the land that it becomes part of the land then we would no longer consider it to be a caravan, mobile home or houseboat. In such cases, the resulting building or structure may be a dwelling if it meets the normal definition.
The higher rates will not be charged on purchases that are charged at the 15% rate for purchases of higher threshold interests in dwellings by companies. However, where such a purchase includes a chargeable interest that is not a higher threshold interest, the deemed separate transaction in those interests [Para 2(3) Sch 4A FA2003] may be subject to the higher rates if the purchase of those remaining interests meets the conditions.
`Para` references are to paragraphs in Schedule 4ZA of the Finance Act 2003.