When purchasing land for self-building, stamp duty land tax (SDLT) could be applicable depending on the plot's value and whether it's classified as residential or non-residential. Bare land, without any development, is generally treated as non-residential, potentially subjecting it to different tax rates. Even if planning permission is granted, it doesn't automatically classify the land as residential. Additionally, the classification of land as part of a garden can also influence stamp duty obligations, making it crucial for buyers to understand the nuances of land classification when considering costs.
"The short answer is that stamp duty land tax (SDLT) may be payable on the acquisition of a building plot (land), but it depends on the value of the plot, and the rates that apply, particularly whether the land is residential or non-residential by nature."
"Bare land is classified as non-residential land. The sale of bare land, without any work started and unconnected to a residential property, is more likely to be taxed on the non-residential rates."
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