Site - Stamp duty

JoeA3

Hi folks,
I purchased a site last year subject to planning permission. We’re in the latter stages of the planning process now and we’re reasonably confident we will get it over the line soon, fingers crossed.

Our solicitor wrote to us today to give us a heads up on fees. I was a bit taken aback to see that we will have to pay 6% stamp duty on top of the cost of the site.

I was expecting 1-2% but apparently if the land is not yet connected to a “building agreement” then 6% applies. Apparently two thirds of this is refundable if we start building on the site within 30 months?

Has anyone else been through this process recently and can shed some light? Is there any way to avoid having to pay the full 6% and if not how straightforward is the eventual refund process? Do you need to wait till build complete before applying for refund?

dubrov

The is no easy way to avoid paying the 6% up front. However, you can claim the refund as soon as the build starts