Tax Forum :: Free Tax Advice

I currently reside in a mobile home which I own. If I purchase a bricks and mortar property whilst I still own the mobile home would I be liable to pay the standard rate of stamp duty on the new purchase, or the second property rate? I'm hoping that the mobile home doesn't count as "property" as such, so I wouldn't own two properties as such. I am aware that stamp duty is not payable at all if a mobile home is purchased as a second home...but I'm doing the opposite to that, which is unusual.

So long as the mobile home remains “mobile” then it would not “count against” you for the purposes of the higher rates of SDLT, so only normal rates of SDLT should apply to your bricks and mortar purchase.

It would be different if the mobile home has become so attached as to become “part of the land”. See https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm10023

Thanks for that. Just trying to get my head around the "residential property" aspect of it all. Although residential, it would appear that the mobile home [which has not become permanent] would not be registered as property on any land registry data. So, owning a mobile home and a bricks & mortar property should imply only one property is owned with regard to SDLT.

I came across this post and wonder if anyone could offer some further advice in a similar scenario.

My mother owned a mobile home (confirmed as being a 'mobile home' as SDLT definitions - the land on which the mobile home sits is owned by a park home company - when she purchased the mobile home, it was not subject to any SDLT). She subsequently bought a bricks and mortar property and was advised by her solicitor to pay the higher rate SDLT on her new home as she had not yet sold her mobile home. She was advised that she could reclaim the higher rate anyway once she sold the Mobile home. She eventually sold her mobile home but (for one reason or another) unfortunately she missed the 12 month window with which to claim back the higher rate of SDLT.

Not wanting to give up on what is a reasonable amount of money I did wonder if she should never have paid the higher rate of SDLT in the first place if, as the post above suggests, the mobile home is 'not' considered a 'residential property' by SDLT definition. ie when she purchased her new bricks/mortar house, it was effectively her only residential property and the higher rate of SDLT should not be applied.

I have read that it may be possible to make a claim for refund if you believe SDLT was 'overpaid' and this can be done within 4 years of the original transaction (new house was purchased and higher rate SDLT paid in August 2018).

Any advice would be gratefully received

Yes, it seems that as the extra 3% should never have been paid, the 12 month time limit following the sale of the mobile home is irrelevant. It is “overpayment relief” she needs to look into, there is a little guidance on it. As you say the time limit there is 4 years from the transaction which incurred the SDLT.

SDLT Geek - thank you for your prompt response - that sounds promising - do you think we could manage this ourselves with HMRC or do you think it might be worth using an account with specialist knowledge?

Thanks again for your help.