Extra stamp duty on properties with granny annexes no longer applies
On the 1st April the extra 3% stamp duty on 2nd properties came into effect. At the same time this was applied to granny annexes however this has now been removed for granny annexes worth less than 33% of the total value of the property.
To qualify for the extra 3% stamp duty charge a granny annex must be worth more than £40,000, have its own entrance, be capable of being sold seperatly to the main property, receive its own council tax demands and have its own utility supplies.
Former RICS chairman Jeremy Leaf stated.
“How would a granny flat tax surcharge have operated? How would it be enforced? Who would carry out the valuations? Would it apply to separate businesses as well as granny annexes? And perhaps, more pertinently, how much additional revenue would it have raised?” he asks.
“In genuine cases, elderly parents and grandparents may have been forced into care homes and away from their families, which surely would have been contrary to the original intention. Common sense has prevailed: the government hadn’t thought it through and now it has had a chance to do so, it realises that it simply wouldn’t have worked.”