Do I need to pay stamp duty on an unused barn?

One Answer

1. Chris Batesmith says:

   12th August 2024 at 11:32 am

   Hi there,

   Thanks so much for getting in touch with your question. This is slightly murky water, as much rests on whether the barn in its current state is considered suitable for use as a dwelling. I’m not a tax law specialist, but my understanding is that most barns – even if they already have planning for conversion – would attract the non-residential form of Stamp Duty Land Tax (SDLT). This seems particularly likely given your ‘derelict’ description.

   Non-residential SDLT is currently set at 0% for purchase prices up to £150,000, then 2% on the next £100,000 and 5% on anything about that (whereas residential SDLT is 0% up to £250,000). So, you’d be liable for 2% on £50,000 of your purchase, which works out at £1,000. However, there are some circumstances where residential SDLT may apply. For instance, if some of the construction works have already begun, you might be able to argue a case with HMRC.

   It’s worth bearing in mind that this has all switched around a bit in recent years – the £250,000 threshold for residential SDLT only came on stream in September 2022, and it’s currently scheduled to revert to £125,000 from 31st March 2025. That’s assuming the new government doesn’t make any changes of its own.

   Best of luck with your plans,

   Chris Batesmith (Build It’s content director)

   Log in to Reply