Granny flats exempt from additional rate of Stamp Duty


Nick Palmer4

By Nick Palmer

In the Autumn budget, the Chancellor introduced 3% rate of Stamp Duty on purchases of second properties. Initially, some properties including a granny annexe would be caught out by the new rate.

However, the government has issued a concession that if the granny annexe is valued at less than one third of the total property value, the lower tax rate will apply. If the granny annexe is valued at more than one third, the new additional 3% tax rate may apply, but only if other conditions are also satisfied.

Nick Palmer is a solicitor in the Private Client team at Barker Gotelee.

Solicitors Ipswich Suffolk – for more information on our range of legal services, please call the team on 01473 611211 or email bg@barkergotelee.co.uk