Building plot Stamp Duty

penn · Apprentice Joined: 07 Apr 2007 Posts: 6

Hello everybody! My family and I have lived in a rented house for almost 5 years. Taking into account how much money we’ve given so far and how much it will cost us to buy a house of our own, we decided to build a house. We found a nice land for it, decided what house do we want and we even hired an architect. When taking finances into consideration, I also thought about various taxes that need to be paid. Now, I know something about taxes for the house, but I don’t know if there’s something that should be paid for building plot, for example stamp duty. So, can someone please tell me whether there is building plot stamp duty. Thank you.

nat · Apprentice Joined: 24 Jan 2007 Posts: 5

Hello to you too. Though vast majority of people opts for renting or buying their place for living, some still decide to build their houses. It has advantages, since you can make your own house. You can shape it as you want. In case of building, you can be sure that it will meet your needs and wishes in the end. You asked about building plot stamp duty. I don’t know much, so maybe it’s better to consult an expert, but as far as I know, it depends on the value of the plot. If your building plot does not cost more than 125 000 pounds, you will be exempt for paying the stamp duty. In case it costs more than that, you will have to pay a stamp duty of a rate from 1 to 4%, which again depends on the value of building plot. Rates rise together with the purchase price of the land. I have some other good news for you. If the house you build is a “Zero carbon home” and costs less than 500 000 pounds, you will also be exempt from stamp duty. In case it costs more, your exemption will be around 15 000 pounds. That would be it. Good luck with your new home.

Building plot Stamp Duty

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