When purchasing a property most people are aware that Stamp Duty Land Tax (SDLT) will be payable on the price of their property, however many aren’t aware that the extras’ you pay for may also be subject to this tax.
If an item is considered to be a ‘fixture’ it is taxable. Meanwhile, if it considered being a ‘chattel’ SDLT will not apply. There is not complete guidance on what items will fall into these two categories but HM Land Registry confirms the following items will generally be regarded as chattels:
- carpets (fitted or otherwise)
- curtains and blinds
- free standing furniture
- kitchen white goods - unless fully integrated
- electric and gas fires (provided that they can be removed by disconnection from the power supply without causing damage to the property)
- light shades and fittings (unless recessed).
Meanwhile, the following items will generally be regarded as fixtures or fittings:
- fitted kitchen units, cupboards and sinks
- agas and wall-mounted ovens
- fitted bathroom sanitary ware
- central heating systems
- intruder alarm systems.
It is clear that this is not a full list of all items that could be included in your ‘extras’, particularly where commercial property is concerned as this may include various items of machinery or office equipment when a business is being purchased along with the property itself.
Get in touch with a solicitor to ensure that you get complete advice on your liability for SDLT by contacting our commercial property department on 01302 965250.