X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Commercial Property

    FTB buy commercial affect residential SDLT?

    Hi all,

    I am new to this forum. I am a first time buyer and have saved some deposit. However my parents have seen a commercial property (ex hosue) for auction (up north so quite cheap) and I thought it would be a good idea to buy the commercial first to let my parents use for their small business ( they have been looking for sometime but could not afford to buy in cash at auction). I would still have some money left for a residential deposit later on. My worry is if buying a commercial property first would affect the stamp duty I pay on my residential purchase later on. I plan to buy through a SPV as I am a high rate tax payer and would like to save future taxes. Alternatively I could give my parents the cash and let them buy for themselves.

    Thanks for reading.

    0
    0

    You only pay stamp duty if the commercial property is worth more than £150k. 

    0
    0

    Thank you for your reply! The auction property is way below 150k. Does that mean if I buy a main home later on I still qualify for the first time buyer stamp duty relief for under 300k?

    0
    0

    If it’s an ex house I suggest you check commercial SDLT will apply and no a commercial property will not affect your SDLT. The additional 3% only applies for second or more residential properties.

    1
    0

    Chartered Accountant, Tax Advisor and Mortgage broker

    (and BTL portfolio owner)

    stuart@johnsonsca.com

    02039077022

    Thank you for your informative reply Stuart! It looks like going to be under 100k so will be exempt from commercial SDLT(guide price 70-80k). I could press on to buy that first then and buy a house for myself later. Many thanks.

    0
    0

    Here's the HMRC manual for SDLT Relief for first time buyers. It may answer any other questions you have:

    https://assets.publishing.service.gov.uk...e_note.pdf

    0
    0

    A good teacher must know the rules; a good pupil, the exceptions.

    Martin H. Fischer


    Thank you Gary for the document. Very helpful!

    0
    0