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Where Taxpayers and Advisers Meet

Multiple dwelling relief for annex

nicebamboo
Posts: 1
Joined: Tue Jan 24, 2017 10:49 pm

Multiple dwelling relief for annex

Postby nicebamboo » Tue Jan 24, 2017 10:59 pm

Hi, we bought a property 8 months ago and I have recently been contacted by two accountancy firms advising that I have paid too much SDLT. They suggest as we have a annex/summerhouse we are able to class this as a second dwelling, thereby allowing us to recalculate the SDLT based upon a much lower average of the two dwellings. I'm reluctant to use the accountancy firms as they will charge a fee, I'd prefer to submit a request for a refund to HMRC directly, however I'm looking for some confirmation that our annex can be classed as a second dwelling. It does have a bathroom and kitchen and therefore is "capable of being a second dwelling", but we currently do not have planning permission for this use. Any advise greatly welcomed!

section 44
Posts: 4468
Joined: Thu Oct 30, 2008 12:47 pm

Re: Multiple dwelling relief for annex

Postby section 44 » Mon Jan 30, 2017 2:26 pm

Could you ask for confirmation directly from HMRC?

BillyBob197
Posts: 1
Joined: Sat Jul 15, 2017 8:29 pm

Re: Multiple dwelling relief for annex

Postby BillyBob197 » Sat Jul 15, 2017 8:32 pm

Did you get this sorted nicebamboo?
We are in exactly the same position and, like you, i'm reluctant to use the no-win no-fee accountancy firms that have contacted us but am not sure how to go about getting the refund. Can you help?
Many thanks

AnthonyR
Posts: 257
Joined: Wed Feb 08, 2017 2:33 pm

Re: Multiple dwelling relief for annex

Postby AnthonyR » Sun Jul 16, 2017 1:29 pm

I'd be cautious, my understanding is that they excluded annexes from the additional 3% by effectively treating it as part of a single property.

But the danger is if you are effectively electing to treat them as two separate properties then potentially the extra 3% applies to the whole amount.

If they are willing to do it on no-win no-fee then it probably won't hurt, but I'd make sure you have an indemnity in place that says that if they end up costing you more in tax/penalties/interest then they will pay the extra. If they aren't willing to give you such an indemnity I wouldn't trust them.
Anthony Rogers CTA TEP
Fusion Partners LLP
anthony@fusionpartners.co.uk

SDLT Geek
Posts: 153
Joined: Sun Apr 30, 2017 5:45 pm

Re: Multiple dwelling relief for annex

Postby SDLT Geek » Mon Jul 17, 2017 8:36 pm

Yes, you are right to be cautious, this is a complex area. There is more about it here:https://www.zoopla.co.uk/discover/buyin ... ffect-you/.

The legislation works by treating some annexes / other self contained dwellings as "subsidiary"" to the main dwelling. There are tests like a 2/3 value test and a same building / in the grounds test.

My reading of the legislation is that in some of these annex type cases it is possible to claim multiple dwellings relief without triggering the 3% surcharge. It is complicated though.

chardri
Posts: 1
Joined: Tue Jan 23, 2018 3:42 pm

Re: Multiple dwelling relief for annex

Postby chardri » Tue Jan 23, 2018 3:47 pm

Hi, I just wondered whether you have had any joy with this? I decided to use an accountancy firm in the end rather than risk it given that it is a complex area. Wasn't that expensive really and have now had the refund although I do wonder if I could have done it myself.

RobinJS
Posts: 1
Joined: Sun Apr 08, 2018 3:41 pm

Re: Multiple dwelling relief for annex

Postby RobinJS » Sun Apr 08, 2018 3:46 pm

Hi, I just wondered whether you have had any joy with this? I decided to use an accountancy firm in the end rather than risk it given that it is a complex area. Wasn't that expensive really and have now had the refund although I do wonder if I could have done it myself.
Hello Chardri, I am about to make a claim for multiple dwelling relief for my annexe and I would be grateful if you could give me any advice. Many thanks

David10
Posts: 1
Joined: Thu Mar 07, 2019 4:39 pm

Re: Multiple dwelling relief for annex

Postby David10 » Thu Mar 07, 2019 4:48 pm

Hi Robin

Did you manage to do this claim yourself ?

Would appreciate any insight please

Many Thanks


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