{"id":4023028,"date":"2019-02-28T10:12:18","date_gmt":"2019-02-28T10:12:18","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=4023028"},"modified":"2023-10-10T13:25:57","modified_gmt":"2023-10-10T12:25:57","slug":"property-investors-and-developers-could-bypass-second-home-stamp-duty-if-property-is-uninhabitable","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-gb\/news\/property-investors-and-developers-could-bypass-second-home-stamp-duty-if-property-is-uninhabitable\/","title":{"rendered":"Property Investors and developers could bypass second-home stamp duty if property is\u00a0uninhabitable\u00a0"},"content":{"rendered":"

A landmark court case found that\u00a0<\/span><\/b>buyers purchasing\u00a0<\/span><\/b>uninhabitable propert<\/span><\/b>ies<\/span><\/b>\u00a0shouldn\u2019t have to pay\u00a0<\/span><\/b>the extra\u00a0<\/span><\/b>stamp duty surcharge on second homes<\/span><\/b>.<\/span><\/b>\u00a0<\/span><\/p>\n

Since 2016, there has<\/span>\u00a0<\/span>been an\u00a0<\/span>extra 3%\u00a0<\/span>stamp duty tax<\/span><\/a>\u00a0on properties bought as an additional property to the buyer\u2019s home.\u00a0<\/span>Now\u00a0<\/span>home<\/span>buyers,\u00a0<\/span>buy-to-let<\/span><\/a>\u00a0investors, and developers buying an additional\u00a0<\/span>property<\/span>\u00a0might be able to cut out the surcharge<\/span>\u00a0if the home is derelict.<\/span>\u00a0<\/span><\/p>\n

A landmark ruling<\/span><\/b>\u00a0<\/span><\/p>\n

In a recent article,\u00a0<\/span>The Times<\/span><\/i>\u00a0<\/span>analysed the impact of\u00a0<\/span>a tax tribunal in Bristol\u00a0<\/span>ruling<\/span>\u00a0in favour of\u00a0<\/span>homeowners\u00a0<\/span>Paul and Nikki Bewley. For\u00a0<\/span>\u00a3200,000,\u00a0<\/span>the couple<\/span>\u00a0bought a derelict bungalow located in Weston-super-Mare as\u00a0<\/span>a\u00a0<\/span>buy-to-let investment<\/span>\u00a0and second property<\/span>.\u00a0<\/span>The\u00a0<\/span>bungalow<\/span>\u00a0was infested with asbestos and didn\u2019t have central hea<\/span>t<\/span>ing<\/span>,\u00a0<\/span>so\u00a0<\/span>th<\/span>ey\u00a0<\/span>completely demolished\u00a0<\/span>it\u00a0<\/span>and built a new home<\/span>.<\/span>\u00a0<\/span><\/p>\n

Even though HM Revenue & Customs argued buyers should have to pay the higher rate of stamp duty if the property could be used as a dwelling in the future, the tribunal said the charge should only apply if the home is immediately habitable.<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n

Exciting<\/span><\/b>\u00a0news for investors and developers<\/span><\/b>\u00a0<\/span><\/p>\n

This ruling could allow previous buyers who paid the\u00a0<\/span>extra<\/span>\u00a0charge for a<\/span>n uninhabitable property\u00a0<\/span>to claim millions of pounds back.<\/span>\u00a0Additionally,\u00a0<\/span>the outcome of this case could encourage more\u00a0<\/span>property\u00a0<\/span>investors<\/span><\/a>\u00a0and developers\u00a0<\/span>to\u00a0<\/span>buy derelict properties<\/span>\u00a0and renovate them<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n

Recently, there has been a lot of\u00a0<\/span>tax changes<\/span>\u00a0<\/span>for<\/span>\u00a0<\/span>landlords<\/span>\u00a0and<\/span>\u00a0<\/span>buy-to-let investors<\/span>, which have made it more difficult for them to\u00a0<\/span>generate revenue<\/span>,<\/span>\u00a0so\u00a0<\/span>this recent ruling is\u00a0<\/span>likely\u00a0<\/span>welcome news.<\/span>\u00a0It brings forward a way investors\u00a0<\/span>could<\/span>\u00a0get around the extra surcharge on second homes.<\/span>\u00a0<\/span><\/p>\n

Since the\u00a0<\/span>additional<\/span>\u00a0<\/span>3% tax was introduced in April 2016, the<\/span>\u00a0government has taken nearly\u00a0<\/span>\u00a34.9bn through the second-home tax and has refunded \u00a3618m.<\/span>\u00a0Some 45% of HMRC\u2019s\u00a0<\/span>stamp duty<\/span><\/a>\u00a0income is from\u00a0<\/span>second homes<\/span><\/a>. Just last year this came in at<\/span>\u00a0over<\/span>\u00a0\u00a33.8bn with<\/span>\u00a0the extra 3% surcharge generating<\/span>\u00a0\u00a31.68bn<\/span>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

A landmark court case found that\u00a0buyers purchasing\u00a0uninhabitable properties\u00a0shouldn\u2019t have to pay\u00a0the extra\u00a0stamp duty surcharge on second homes.\u00a0 Since 2016, there has\u00a0been an\u00a0extra 3%\u00a0stamp duty tax\u00a0on properties bought as an additional property to the buyer\u2019s home.\u00a0Now\u00a0homebuyers,\u00a0buy-to-let\u00a0investors, and developers buying an additional\u00a0property\u00a0might be able to cut out the surcharge\u00a0if the home is derelict.\u00a0 A landmark ruling\u00a0 In… Read more »<\/a><\/p>\n","protected":false},"author":1982,"featured_media":4023029,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[61,4,26],"tags":[45,85],"class_list":["post-4023028","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-construction","category-investment","category-tax-mortgages-money","tag-renovation","tag-stamp-duty"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/4023028","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/users\/1982"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/comments?post=4023028"}],"version-history":[{"count":1,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/4023028\/revisions"}],"predecessor-version":[{"id":6097545,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/4023028\/revisions\/6097545"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media\/4023029"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media?parent=4023028"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/categories?post=4023028"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/tags?post=4023028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}