Extra SDLT but my only property is abroad?Make Text Bigger
I have recently moved to the UK and looking to buy a property together with my wife. She is a FTB, but I own a property abroad. Due to my current ownership of a flat currently being rented out, us buying together, and a joint application sole proprietor mortgage not being an option, we are placed in the higher stamp duty bracket. From what I understand from talking to HMRC, I would avoid paying the higher tax if I were to sell my property abroad – as this is classed as my main residence despite currently living in rented accommodation in England (which I would argue is my main residence, but HMRC disagrees…).
So, in order to avoid the higher SDLT, would it be possible for me to buy a (cheap) property anywhere in the UK, and thus having this become my main residence, and then immediately trying to sell said property.
1) Would this be classified as me having sold my main residence – and thus put me in the lower SDLT bracket when purchasing a property to live in?
2) Would there have to be a “minimum” price on what I would be buying, e.g. could it cost £4,000 or would it at least have to be a property worth above the stamp duty threshold of £40,000?
Thank you all in advance for all your help – it is much appreciated!
With a budget of £400,000 to buy, there’s a significant money to be saved here.
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