“Granny Flats” now not to be included
The controversial new tax for buy-to-let and second homes introduced from 1st of April will not now include homeowners with self-contained “granny flats”, the government will table an amendment to correct the error and ensure fair treatment for annexes.
The problem was the changes would have meant anyone buying a home with a granny flat would have had to pay out more due to the tax surcharge, the Treasury has now announced changes to the rules to protect houses with self-contained annexes.
The 3% surcharge on Stamp Duty will only apply if the annex is worth more than a third of the total value of the property.
David Gauke MP, Financial Secretary to the Treasury, reportedly told the House of Commons. “I have been made aware that the Bill as drafted might lead to some main houses with an annexe for older relatives attracting the higher rates of Stamp Duty intended to apply to additional properties,” David Gauke MP, Financial Secretary to the Treasury, told the House of Commons.
“I am happy to assure the House that that is not our intention and the Government will table an amendment to correct the error and ensure fair treatment for annexes.
“We certainly do not want to discourage people who wish to create an annexe for an elderly or disabled relative, providing them with support close at hand.”
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