Stamp duty on new house
Discussion
A hopefully quick query as t'interweb searches give a few different answers.
The house me and the other half live in is owned and mortgaged by her alone whilst I sold my house a few years ago. I also own 5 buy-to-lets.
I am in the process of purchasing a bigger house for us and fully understand that we are seen as a single entity in the eyes of HMRC and that the second house will mean we pay a much higher stamp duty.
What I can't understand is why even if we sell her house within the 3 year period we can't claim back the difference between if we were selling where we live now at the same time. My solicitor states that my buy-to-lets are classed as a second property yet some stuff I have read state they aren't as they are a business.
I'm going to ring HMRC tomorrow but does anyone know if I'm stuck paying the higher amount due to being careful with my money over the years and investing it?
The house me and the other half live in is owned and mortgaged by her alone whilst I sold my house a few years ago. I also own 5 buy-to-lets.
I am in the process of purchasing a bigger house for us and fully understand that we are seen as a single entity in the eyes of HMRC and that the second house will mean we pay a much higher stamp duty.
What I can't understand is why even if we sell her house within the 3 year period we can't claim back the difference between if we were selling where we live now at the same time. My solicitor states that my buy-to-lets are classed as a second property yet some stuff I have read state they aren't as they are a business.
I'm going to ring HMRC tomorrow but does anyone know if I'm stuck paying the higher amount due to being careful with my money over the years and investing it?
Could be completely wrong but as I understood it if you were buying a new main residence and selling your current main residence then you wouldn't pay the additional 3%.
Don't know if the fact that only your MRs owns your current place has an impact if so maybe you could get yourself added to the deeds before the sale?
Hopefully Eric or someone else with more knowledge will be along shortly.
Don't know if the fact that only your MRs owns your current place has an impact if so maybe you could get yourself added to the deeds before the sale?
Hopefully Eric or someone else with more knowledge will be along shortly.
Been explained many times on PH. If you already own a property and buy a second (or third or fourth etc), you will pay the additional 3%.
It's as simple as that.
If the second property is INTENDED to replace your existing home, you will still pay the 3% if you haven't yet sold your existing home. If the new property becomes your main residence within 36 months of buying it, you can reclaim the additional 3% you paid when you bought it.
It's as simple as that.
If the second property is INTENDED to replace your existing home, you will still pay the 3% if you haven't yet sold your existing home. If the new property becomes your main residence within 36 months of buying it, you can reclaim the additional 3% you paid when you bought it.
Rangeroverover said:
rsbmw said:
My understanding is that the additional stamp duty is precisely to tax buy to let landlords. If they're 'owned' by a ltd company you own, it may be different.
ltd Co stuff is nonsense....ignoreEric Mc said:
Been explained many times on PH. If you already own a property and buy a second (or third or fourth etc), you will pay the additional 3%.
It's as simple as that.
If the second property is INTENDED to replace your existing home, you will still pay the 3% if you haven't yet sold your existing home. If the new property becomes your main residence within 36 months of buying it, you can reclaim the additional 3% you paid when you bought it.
This is the bit that's getting me. It is replacing our current home which has just gone on the market yet the buy-to-let's seem to be still classed as a second property.It's as simple as that.
If the second property is INTENDED to replace your existing home, you will still pay the 3% if you haven't yet sold your existing home. If the new property becomes your main residence within 36 months of buying it, you can reclaim the additional 3% you paid when you bought it.
Oh well. The government screws me out of another £10k.
drainbrain said:
Eric Mc said:
Been explained many times on PH. If you already own a property and buy a second (or third or fourth etc), you will pay the additional 3%.
It's as simple as that……….
…….unless it's below a certain price. (£40k)It's as simple as that……….
Edited by drainbrain on Friday 8th July 20:31
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