Stamp Duty on Uninhabitable Properties

Stamp Duty Land Tax (SDLT) is a significant consideration when purchasing property in the United Kingdom. However, the government offers relief categories that provide potential savings for properties considered uninhabitable.

Understanding SDLT Uninhabitable Relief: SDLT uninhabitable relief provides a means of reducing the SDLT liability for properties that are deemed uninhabitable at the time of purchase. The relief acknowledges that such properties require renovation or significant refurbishment before they can be occupied as a residence.

Eligibility Criteria for SDLT Uninhabitable Relief: To qualify for SDLT uninhabitable relief, certain eligibility criteria must be met:

• Condition of the Property: The property must be considered uninhabitable at the time of purchase due to its physical condition. This typically means that the property requires substantial work, such as major renovations, repairs, or refurbishment, before it can be occupied as a residence.

• Intention to Make the Property Habitable: The buyer must have a genuine intention to carry out the necessary renovations or refurbishments to make the property habitable. This intention must be supported by concrete plans and actions, such as obtaining planning permission, architectural drawings, or engaging contractors for the renovation work.

• Timing of the Renovation: SDLT uninhabitable relief applies when the renovation work is conducted within specific timeframes set by HM Revenue and Customs (HMRC). It is essential to adhere to these timeframes to ensure eligibility for the relief.

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