stamp duty land and house

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edenjohnny

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hi, i am buying some land (19 acres) with a cottage in need of a refurbishment. I know that stamp duty is 9% on the total, But i have been told I can split the house and 1 acre and value it at sya 127, and pay no duty on that but pay 9% on the remainder. Ok, this is where the maths comes in .... what is the best ratio keep the land price low and the house high or vica versa. Any Boffins out there please help me. I,M sure my solicitor willo advise but was wondereing in advance. thanks
 
You should have the auctioneer do an apportionment calculation. You don't get to choose what value to put on the house, it is dependant on the actual market value of same. However there is sometimes a range of values that could be attributed to a house or land so you sometimes hear someone asking the valuer to value the house high, or low. Really it depends on whether you are a FTB or not and whether you intend to live in the house. Also I assume you do not qualify as a young trained farmer?
 
thanks vanilla, I do intend to live in the house, which needs doing up, so the value could be low, however the EA claims that the house is worth e350/400,000. Therefore the stamp duty is higher, and the remainder of the land will be at 9%. Is there a ratio where I will be paying the least amount.
 
hi vanilla i am not a ftb, the house and 19.5 acrres is e620,000. I believe you can split it to house and 1 acre, and remainder as land only
 
On those figures I think the optimum is probably to keep the house highish but not to cross the 381000 threshold ( which would change rate from 6% to 7.5%) and put balance on the land. So house at 380k if possible and balance on land. That is of course if valuer agrees.
 
It would be in your best interest if the residential portion (ie. the house and one acre) is highish as the rest of the property is non-residential any non-residential property valued over 150,000 is going to be at 9%.
 
thanks for that. I am still negotiating selling and buying at the same time, I have a lowish offer on My present house, and the land is almost accepted also at a low price, WE ARE HORSE TRADING at the minute.
 
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