We’re really pleased to hear the UK Government has decided to drop the proposed rise in Stamp Duty Land Tax (SDLT), which could have affected many people who own granny annexes or granny flats.
The proposed changes in SDLT could have affected up to 33,000 properties across England and Wales, and would have come into effect from 1st April 2016.
The initial proposal would have affected Granny Annexes that meet all the following criteria:
- Classed as a separate dwelling for tax purposes
- Must have independent access i.e. no access through the main house
- Must be able to be sold separately
- Must be valued at over £40,000
- Must be able to be sold as a separate residence.
Luckily for our customers, the above would not have affected them anyway due to the type of planning permission we use which prevents the granny annexes from meeting the above criteria.
However it’s good to know that the proposed changes have been dropped and there will be no 3% hike in stamp duty for annexes.
Here’s some links for further reading:
The Times – How did the Granny Annexe tax ever get this far?