A common question we get from those contemplating owning a holiday home, whether it’s a caravan or a lodge, is if they’ll be paying any stamp duty.
Stamp duty — or, to give it its full name, stamp duty land tax (SDLT) — is a common tax often paid on the purchase of new property in the UK.
In the vast majority of cases, there is no stamp duty levied on the purchase of holiday homes. Regardless of value or location, stamp duty doesn’t usually apply to caravans, mobile homes, holiday homes, park homes or lodges.
That’s right — no stamp duty calculators or big wads of cash needed. The exemption of holiday homes from stamp duty makes them an attractive prospect for those wishing to invest in a second property for holidaying — think a peaceful country or coastal bolthole for limitless, year-round trips.
The financial savings can be twofold: the purchase of a holiday home does not also often require the services of an expert solicitor.
Stamp duty applies to the purchase of residential or business property or land located in the UK. When you are purchasing a holiday home, static caravan or similar, you’re only buying the property itself, not the land which it resides upon. As such, stamp duty doesn’t (usually!) apply.
Although highly unlikely, it’s possible that the purchase of a park home property can incur stamp duty tax.
For absolute clarity, refer to SDLTM10023 – Mobile Homes, Caravans and Houseboats — the Government’s official Stamp Duty Land Tax Manual. This gives a full rundown on whether your case may be an exemption.
In Scotland, the equivalent of stamp duty is the Land and Buildings Transaction Tax (LBTT). In Wales, it’s called the Wales Land Transaction Tax (LTT).
However, in both cases, the same rules apply — there’s no stamp duty tax for the purchase of a holiday home, lodge, mobile home or caravan. Most often, you’re purchasing the property, not the land on which it stands.
For anything else you might like to know about holiday home ownership, you’re in the right place. We have twelve gorgeous holiday parks in handpicked locations across the UK — get in touch with our friendly team to discuss any and every aspect of your holiday home ownership journey.