We live in an end terraced property in Stoke and are in the process of purchasing our neighbour's property and converting the two houses into one. We intend to obtain planning permission for the conversion prior to completing the sale and we will not purchase the property if we don't get planning permission. Therefore, the new property will be our main residence alongside our existing property as they will become one. In this situation, are we liable to the 3% stamp duty land tax (SDLT) surcharge? Does it make a difference that I own a 50% share of my mother's property that she resides in and has a life interest in?

Arthur Weller replies:
See HMRC’s Stamp Duty Land Tax manual at www.gov.uk/hmrc-internal-manuals/stamp-duty-land-taxmanual/sdltm09810 at Example 9 indicates that the extra 3% SDLT will apply here. After the purchase you will own an additional residential property, and you are not replacing your main residence. Intention to merge doesn't count here. The fact that you own 50% of your mother's house makes no difference because, as above, you already own your own home and are not replacing your main residence.