There are many scenarios surrounding the payment of the additional 3% of stamp duty which applies if you buy a second home which is not replacing your main residence.
One of the possibilities is if you are considering buying a houseboat when you already own one or more properties. This could also apply if you are buying a caravan or mobile home.
Well the first thing to note in any case is that the second level of stamp duty does not apply for any property purchases under £40,000.
But the good news, if you are considering buying a houseboat and already own property, is that houseboats are often exempt from the extra stamp duty (as caravans and mobile homes can be) so it does not matter if you are buying it as a main residence or as a possible letting opportunity.
If you are buying a houseboat then whether or not it is subject to SDLT may depend on the setup. For example see this quote from HMRC
If the boat can be easily disconnected from main services (for example, by means of ‘push fit’ fittings) and removal from its moorings would not damage the fabric of the land then it will be treated as moveable property and therefore not subject to SDLT. If however, there is a structure which forms part of the boat itself, which in turn is permanently secured to the land, and to move this would involve damaging the fabric of the land then it will be treated as a fixture and will attract SDLT.
So it really depends on the arrangement when you buy the houseboat and the associated berth if there is one.
Not clear: will I be liable for stamp duty on a houseboat if it is on a fixed mooring and is our only home? If so, can you advise which band?
Hi Ed, sorry yes it isn’t clear here so I will update this. As I understand it, whether or not stamp duty is payable on a houseboat may depend on the setup. For example, if it can be easily moved to another mooring then it is treated as movable property and not subject to SDLT. However, if it is more permanently fixed then it is likely to be chargable. I will add more info above. However, as long as it does not cost more than £125,000 (at the time of writing) then it will not incur stamp duty charges if it is your main residence.