1st time UK buyer and stamp duty?

by Readers Question

10:55 AM, 21st May 2019
About 2 years ago

1st time UK buyer and stamp duty?

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1st time UK buyer and stamp duty?

My Son lived at home with us in Surrey until he went to work in Canada 9 years ago. He bought a home there.

He has now returned to the UK after selling up in Canada and has bought a home in Yorkshire. He was charged 3% stamp duty.

QUESTION: As he is a first-time buyer in UK should he have been charged this tax?

Many thanks


Editors note: please see the flow chart below and the maximum term for a refund is now 3 years not 18 months.


Neil Patterson

10:59 AM, 21st May 2019
About 2 years ago

If your son is British and resident in the UK I do not see why he paid the extra 3% stamp duty surcharge unless he owned a home in Canada at the time.

However, now with proof of sale I would request a refund from HMRC as per the flow chart above.

Alison King

12:10 PM, 21st May 2019
About 2 years ago

If he's previously owned a property overseas he's not a first time buyer so he should pay 2% on any portion of the price above £125,000. More if over £250,000. He should not pay the 3% second home charge as others have rightly said

Dennis Stephenson

15:34 PM, 21st May 2019
About 2 years ago

Assuming that he has actually sold his house in Canada then the answer to the first box is 1. So whether the first ( now sold ) house was bought in Canada or the UK is immaterial. Also the new house is a replacement for his main resident so under both conditions he should not pay the 3%. If the sale of the Canadian house is still going through then he should pay but be able to claim it back after the sale. Simples.

Pixie Props

20:33 PM, 25th May 2019
About 2 years ago

Many thanks for your help and all the replies. It appears he is liable for 2%

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