Stamp duty on new house
Stamp duty on new house
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14-7

Original Poster:

6,233 posts

221 months

Thursday 7th July 2016
quotequote all
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?

rsbmw

3,466 posts

135 months

Thursday 7th July 2016
quotequote all
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.

Rangeroverover

1,523 posts

141 months

Friday 8th July 2016
quotequote all
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....ignore

SunsetZed

3,009 posts

200 months

Friday 8th July 2016
quotequote all
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.

Eric Mc

125,742 posts

295 months

Friday 8th July 2016
quotequote all
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.

Jockman

18,414 posts

190 months

Friday 8th July 2016
quotequote all
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....ignore
If a Ltd Co buys a 2nd property and its owners already have a property then the enhanced rate is due.

14-7

Original Poster:

6,233 posts

221 months

Friday 8th July 2016
quotequote all
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.

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.

Oh well. The government screws me out of another £10k.

drainbrain

5,637 posts

141 months

Friday 8th July 2016
quotequote all
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)

Edited by drainbrain on Friday 8th July 20:31

Eric Mc

125,742 posts

295 months

Friday 8th July 2016
quotequote all
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)

Edited by drainbrain on Friday 8th July 20:31
If you can find a property for less than £40,000 that you would consider worth buying.

drainbrain

5,637 posts

141 months

Friday 8th July 2016
quotequote all
Eric Mc said:
If you can find a property for less than £40,000 that you would consider worth buying.
If only you knew. whistle

Not that it matters. The important thing is that the 3% levy doesn't apply to anything below £40k.


Edited by drainbrain on Friday 8th July 23:32