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Where Taxpayers and Advisers Meet

Buy next door house, change boundary and sell again

sharpener
Posts: 63
Joined: Wed Aug 06, 2008 3:34 pm

Buy next door house, change boundary and sell again

Postby sharpener » Fri Nov 08, 2019 4:33 pm

The house next door (in England) is to be sold following the death of one of the owners, est value perhaps 800k. It has an extensive garden (~1/3 acre) and we would like to buy a strip of it to widen our own garden. If the remaining owners are not willing to agree to this we could of course buy the whole property, re-define the boundary and then sell it again - but is there any way of avoiding having to pay stamp duty on the whole rather than just the part we want to keep?

pawncob
Posts: 4390
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Buy next door house, change boundary and sell again

Postby pawncob » Sat Nov 09, 2019 7:13 pm

No.
With a pinch of salt take what I say, but don't exceed your RDA

SDLT Geek
Posts: 174
Joined: Sun Apr 30, 2017 5:45 pm

Re: Buy next door house, change boundary and sell again

Postby SDLT Geek » Sat Nov 09, 2019 8:26 pm

Yes. There is a subsale relief, now called pre completion transaction relief, if you can line up the onwards sale of most of the property to complete at the same time as your purchase of the whole.

jerome.lane
Posts: 97
Joined: Mon Aug 12, 2019 8:41 am
Location: Camberley, Surrey
Contact:

Re: Buy next door house, change boundary and sell again

Postby jerome.lane » Tue Nov 12, 2019 10:40 am

SDLT geek has got this one. Guess that's why he's called SDLT geek :lol:
Jerome Lane
Tax Advisor
jerome.lane@stewartco.co.uk
Stewart&Co.
Chartered Accountants
Telephone: 01276 61203

AnthonyR
Posts: 303
Joined: Wed Feb 08, 2017 2:33 pm

Re: Buy next door house, change boundary and sell again

Postby AnthonyR » Tue Nov 12, 2019 11:56 am

Yes. There is a subsale relief, now called pre completion transaction relief, if you can line up the onwards sale of most of the property to complete at the same time as your purchase of the whole.
I don't generally advise on SDLT, but like to understand the general rules. With PCTR does the onward sale have to happen at the same time as the purchase or is there a window allowing a some time between the two transactions? For instance, could you have exchanged prior to the purchase and then complete a month later on the sale?
Anthony Rogers LLB CTA TEP
Fusion Partners LLP
anthony@fusionpartners.co.uk

pawncob
Posts: 4390
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Buy next door house, change boundary and sell again

Postby pawncob » Tue Nov 12, 2019 12:27 pm

https://www.gov.uk/government/publications/stamp-duty-land-tax-sdlt-pre-completion-transactions-rules
With a pinch of salt take what I say, but don't exceed your RDA

AnthonyR
Posts: 303
Joined: Wed Feb 08, 2017 2:33 pm

Re: Buy next door house, change boundary and sell again

Postby AnthonyR » Thu Nov 14, 2019 5:24 pm

https://www.gov.uk/government/publications/stamp-duty-land-tax-sdlt-pre-completion-transactions-rules
Was hoping for a yes or no answer rather than a 22 page HMRC publication ;) won't be the biggest one I read this week though unfortunately.
Anthony Rogers LLB CTA TEP
Fusion Partners LLP
anthony@fusionpartners.co.uk


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