Stamp Duty Rebate For Granny Annexe

Annexes are a common feature in many UK homes and can often be used for a number of different purposes. Whether you have an annexe for a relative to use, as a holiday let, or even as a private office space, it can be handy to know whether the space can impact the stamp duty paid on the property. Stamp duty, or Stamp Duty Land Tax (SDLT), is a type of land tax paid on residential properties in England and Northern Ireland, with Scotland and Wales having their own similar tax schemes. Find out how granny annexes can impact SDLT on UK properties and whether you are eligible for a stamp duty rebate.

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How Does Stamp Duty Work For Granny Annexes?

When buying a property, most people will pay Stamp Duty Land Tax (SDLT). Yet there are certain instances when buyers will be required to pay more stamp duty than is standard. For example, on buy-to-let properties or second homes, buyers will pay an extra 3% SDLT surcharge as they are considered additional properties. However, the great thing about a granny annexe is that they do not count as additional properties, meaning there is no surcharge to be paid despite the extra space offered. Instead, if they constitute a separate dwelling then buyers may be entitled to multiple dwelling relief.

Can I Get A Stamp Duty Rebate On Granny Annexes?

If you believe you may have overpaid on Stamp Duty Land Tax, you may qualify for a type of SDLT relief. When it comes to granny annexes, buyers can claim ‘multiple dwellings relief’ or MDR if they meet the recognised eligibility criteria. This is calculated by taking the price of the property and multiplying it by the number of dwellings. 

What Is A ‘Dwelling’?

When using the term ‘dwelling’, oftentimes people will be referring to a separate building or a self-contained area of the same building which is suitable to live in. Dwellings can come in various forms, but the most common are granny annexes and flats. For the purposes of Stamp Duty Land Tax, dwellings must reside on the same piece of land in order to qualify for multiple dwellings relief.

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How Does Multiple Dwellings Relief Work?

Property buyers can claim relief when purchasing more than one dwelling in a transaction, including freehold or leasehold interests. In order to claim multiple dwellings relief, you will first need to calculate the rate of tax HMRC charges. To do this, divide the total amount paid for the properties by the number of dwellings. Then you can work out the tax based on this figure by comparing the sum against SDLT percentage rates.

As an example, say you buy 4 houses for £1 million. £1 million divided by 4 is £250,000. Stamp Duty Land Tax is not paid on properties valued less than £250,000. However, the minimum rate of tax to qualify for multiple dwellings relief is 1% of the amount paid for the dwellings, so in this case, you would pay £10,000 in SDLT compared to the 10% you would typically pay on properties worth £1 million.

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How To Claim A Stamp Duty Rebate For Granny Annexes?

If you believe you could receive multiple dwellings relief and therefore wish to apply for a stamp duty rebate, in most cases, a conveyancing solicitor or property accountant will calculate your SDLT and relief. A claim can then be made within the land transaction return. Yet if you are claiming MDR after the purchase of the property, you should make a claim to HMRC within 12 months of the filing date of the SDLT return for your purchase.

For further guidance, advice, and help regarding stamp duty rebate for granny annexes or other SDLT reliefs, feel free to contact us at Stamp Duty Rebate where our team are always on hand. We can help with your claim and send information directly to HMRC on your behalf to ensure everything is handled appropriately.

Recent claims

How much can I expect to get back should my claim be valid and approved?

Every case is different. In some cases, we were able to arrange a rebate of up to 60% of the original SDLT paid. Some of the cases that we’ve successfully claimed refunds for:

Steven B Primary Residence
Rebate Received £9,337.00
Purchase price £1,100,000.00
Stamp Duty Paid £53,750.00
Gary H Primary Residence
Rebate Received £26,795.00
Purchase price £1,485,000.00
Stamp Duty Paid £89,750.00
Matt S Buy to Let
Rebate Received £8,817.35
Purchase price £274,000.00
Stamp Duty Paid £11,920.00
Ben G Primary Residence
Rebate Received £17,397.00
Purchase price £1,260,000.00
Stamp Duty Paid £69,750.00
Zev S Buy to Let
Rebate Received £13,044.95
Purchase price £410,000.00
Stamp Duty Paid £22,800.00
Ashkey P Buy to Let
Rebate Received £2,502.33
Purchase price £82,500.00
Stamp Duty Paid £2,475.00
Sophia L Primary Residence
Rebate Received £42,478.00
Purchase price £1,680,000.00
Stamp Duty Paid £115,350.00
Jonathan P Buy to Let
Rebate Received £2,340.51
Purchase price £77,500.00
Stamp Duty Paid £2,325.00
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Why Choose Stamp Duty Rebate?

When choosing Stamp Duty Rebate to complete your stamp duty rebate, we will always work efficiently, fast and keep all of your information secure. Not only do we provide a hassle-free service, but we ensure all of our customers are satisfied throughout the process.

Often, tax and finances can be stressful and time-consuming, so by choosing us you’ll save time. By allowing us to complete the process for you, we will also be able to better the chances of receiving any thousands of pounds you may be owed. 

Our application process is straightforward for everyone, and we have a team on hand that will complete everything for you. Why not save your time and money today by choosing  Stamp Duty Rebate? As experts in the field with years of experience, we can ensure you’re in safe hands. 

Get in touch today to make a claim and find out whether you could be entitled to thousands of pounds from HMRC