Postby SDLT Geek » Sun Oct 08, 2017 9:00 am
I do not agree with bd6759. The Sch 4ZA para 5(2) provision referred to relates to cases where what is being bought is "two or more dwellings" (para 5(1)(b)). That is not the case here. What is being bought is one dwelling with kennels.
If the property counts as mixed use, the lower Table B rates of SDLT apply and the 3% surcharge cannot apply.
To see if the property counts as mixed you need to look at the rules and practice quite closely. HMRC are tending to say now that land with a house counts as its "grounds" and so as part of the residential property unless there is actual business use going on at completion. They often ask for written evidence of actual business use up to completion and even of the buyer continuing that use afterwards.
Is this an active kennels boardings business with you buying the equipment, taking over the bookings and staff etc with the contract having the appropriate clauses used in the purchase of a business? If so, it should be quite clear cut.
The SDLT would be £8,250 on a price of £375,000 for a mixed use property.