“”Taxman cracks down on ‘granny annexe’ property loophole
The amount recovered has increased by almost 400pc in the last three years
Home buyers using a “granny annexe loophole” to cut their stamp duty bill have faced a crackdown from the taxman amid a rise in false claims.
HM Revenue & Customs (HMRC) has clawed back millions of pounds from buyers making “granny annexe” tax relief claims. The amount recovered has increased by almost 400pc in the last three years, according to a Freedom of Information request by accountancy firm RSM.
Chris Etherington, of RSM, said: “They are going to war on granny annexes.”
The loophole – officially known as “multiple dwelling relief” – allows buyers to pay less stamp duty if they are purchasing properties that are linked. This can include a portfolio of buy-to-let properties, or a house with an additional self-contained dwelling, such as a granny annexe.
The presence of an additional dwelling can save thousands in stamp duty. A buyer claiming multiple dwelling relief divides the total sale price by the total number of dwellings and pays stamp duty on the average cost.”
https://www.telegraph.co.uk/tax/news...erty-loophole/
Stamp duty used to be 0.5% and even that was 0.49% too much
The amount recovered has increased by almost 400pc in the last three years
Home buyers using a “granny annexe loophole” to cut their stamp duty bill have faced a crackdown from the taxman amid a rise in false claims.
HM Revenue & Customs (HMRC) has clawed back millions of pounds from buyers making “granny annexe” tax relief claims. The amount recovered has increased by almost 400pc in the last three years, according to a Freedom of Information request by accountancy firm RSM.
Chris Etherington, of RSM, said: “They are going to war on granny annexes.”
The loophole – officially known as “multiple dwelling relief” – allows buyers to pay less stamp duty if they are purchasing properties that are linked. This can include a portfolio of buy-to-let properties, or a house with an additional self-contained dwelling, such as a granny annexe.
The presence of an additional dwelling can save thousands in stamp duty. A buyer claiming multiple dwelling relief divides the total sale price by the total number of dwellings and pays stamp duty on the average cost.”
https://www.telegraph.co.uk/tax/news...erty-loophole/
Stamp duty used to be 0.5% and even that was 0.49% too much
