Confusion about Stamp Duty

by Readers Question

4 days ago

Confusion about Stamp Duty

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Confusion about Stamp Duty

We are in the process of downsizing, selling our principle residence and buying a smaller one . We will have to sell before we buy so there is no question of us owning two houses at the same time .
We also have one small rental property- a flat .

I have been told
1) we will be liable for the extra 3% stamp duty on the new principle residence
2) we will NOT be liable for the extra 3% stamp duty on the new principle residence .
Which is it ?

Many thanks

Gay

Editors Note:

Please see flow chart below

Comments

Neil Patterson

4 days ago

Hi Gay,

If you are replacing one principle private residence for another regardless of how many other properties you have you do not pay the additional 3% surcharge for second homes.

Chris Clare

4 days ago

The table above I think maybe wrong you can claim a rebate for up to 3 years not 18 months.

tony tony

4 days ago

even more confused now ? is it 18 months or 3 years also if you are replacing a private resindece with another private resindence but keeping your firt one to let out which do you pay the 3% on the fist or the second ? cheers

Chris Clare

4 days ago

You get the rebate if you sell your old PPR within 3 years.
You pay the enhanced SDLT on the one your buying..

Example 1
Buy new PPR pay standard and 3% extra SDLT but you sell old PPR 2 years and 6 months later = rebate of the 3% extra paid when you bought the new PPR..

Example 2 Buy new PPR let out old PPR you pay the basic SDLT plus the extra 3% on the new PPR at the price you bought it for.

Neil Patterson

4 days ago

Yes correct that is an old table and it is now 3 years for refunds of main residence purchases

tony tony

3 days ago

Reply to the comment left by Chris Clare at 13/10/2017 - 10:03
thanks for that

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