Looking to purchase house built as 2 properties what is the stamp duty costs?

[Reddevil1974]

Hi
We are looking to purchase a property that was built in the 1970's as a 3 storey detached property which has a self contained studio flat on the lower ground floor. This flat has been rented out over the years and has its own council tax band and registered address with post office (i.e. 23a) the services (Gas/electrics etc) are all run off the main meters in the house so shared. We are wanting to buy this property and probably convert it to one house. (although maybe the option to keep as two could be useful with teenage kids etc). When i look at the projected values on a uk property website it lists the main house as a semi worth 350k and the flat as a studio worth 120k. as the value of the flat is under 1/3rd of the value of the whole is it correct that we would not have to pay the additional stamp duty of 5% as if we were purchasing a 2nd home. For info we are selling our main & only property to purchase this one.

[Frank1]

Unfortunately the value of the flat is over one third of the total property value so the Annexe Rule does not apply.

[atticus]

120 is less than 1/3 of 470.

Other than that, I cannot comment as thankfully I know little about the minutiae of Stamp Duty Land Tax.

[Frank1]

If the value of the subsidiary annex is less than one third of the total price paid for the property then the 3% sdlt surcharge may not apply.

[Frank1]

If you paid £350k for the whole property and the annex was valued at £120k. Sdlt would be:

£7250 for the whole property plus
£120k less £40k = £80k x 3% surcharge = £2400
Giving a total of £9650

If you paid £361k for the whole property stamp duty works out at £7360.. No sdlt surcharge