Q&As

X bought a farm including a farmhouse and ran his farm from it. X has been living in the farmhouse. If X still owns the farmhouse will this count as a main residence? If so will any new house purchased attract the higher 3% rate of stamp duty land tax even though the farm is a working farm?

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Produced in partnership with Sharron Carle of Keystone Law
Published on LexisPSL on 17/07/2020

The following Tax Q&A produced in partnership with Sharron Carle of Keystone Law provides comprehensive and up to date legal information covering:

  • X bought a farm including a farmhouse and ran his farm from it. X has been living in the farmhouse. If X still owns the farmhouse will this count as a main residence? If so will any new house purchased attract the higher 3% rate of stamp duty land tax even though the farm is a working farm?

X bought a farm including a farmhouse and ran his farm from it. X has been living in the farmhouse. If X still owns the farmhouse will this count as a main residence? If so will any new house purchased attract the higher 3% rate of stamp duty land tax even though the farm is a working farm?

For the purpose of this Q&A, we have assumed that the farm and the farmhouse are owned personally, that the owner has no other property interests and will continue to own the farm at the time of the purchase of the new house.

The term 'main residence' is not defined within the legislation relating to stamp duty land tax (SDLT). It is usual for undefined statutory terms to be held to take their ordinary meaning.

HMRC’s SDLT manual: SDLTM09812 provides that if an individual only lives in one property, that property will be treated as their main residence.

For the higher 3% rate of SDLT to apply to the purchase of the

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