Confusion about Stamp Duty

by Readers Question

A month 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

A month 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

A month ago

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

tony tony

A month 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

A month 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

A month ago

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

tony tony

A month ago

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

Prakash Shah

A month ago

A not so well known Letting agent , one men Bussiness has offered me to let my Property at full market rent, pay rent and council tax during void period , pay for all maitance that landlord is liable for . I have not agreed yet because he wants assured tenancy between him and me but I suggested between tenant and me. Advice please . Re evication law. If rent not received and agent disappeared then how will go about eviction process.

tony tony

A month ago

Reply to the comment left by Prakash Shah at 17/10/2017 - 09:32
if your the owner, you must have the tenancy argeement with the tenant, sounds a bit dodgy to me

Ross Tulloch

4 weeks ago

I have spent some time looking into this and I think that this rule is simple and not as above.

If you own a home (main, let out or whatever) any home you buy after this is deemed a second home and subject to 3% extra stamp.

If you own a small let out flat and a main residence and want to sell the main one, and buy a different main residence it is still a second home.

If you have a flat let out, say val £100k and own nothing else and want to buy a main residence for say £2m, it is a second home and the 3% applies.

If you own a property in your name, one let out, and your wife wants to buy a main residence in her name then the 3% applies because your spouse owns one.

Tax was never fair.

We have just been through all this for my daughter in law and her husband

Chris Clare

4 weeks ago

Reply to the comment left by Ross Tulloch at 24/10/2017 - 13:48
Hi Ross

You are right in parts and wrong in others.

Yes if you own a home or BTL and keep them and then buy another you pay the extra.

However if you own a housing estate of houses and one main residence which you then sell to buy a £2 million property no you do not pay the extra.

If your spouse buys a property and she does not own any other property in her name she will not pay the extra SDLT even if you own half of the county.

For more information and a calculator please visit

https://www.gov.uk/stamp-duty-land-tax

https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro

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