Stamp Duty Surcharge Query

[TDutchy]

Guys & Girls,

Quick query, I hope some of the better versed property experts may be able to assist with;

- Unmarried couple are purchasing a property, to live in together (primary residence)
- Said couple are currently living (last 12 months+) with the parents of one of them
- One member of said couple owns a property in N.I. that is and always has been rented out.

Considering they are buying a home to live in, is said couple liable to pay the stamp duty surcharge?

Thanks in advance, all responses greatly appreciated.

PS: Mods if there is a better suited forum for this query, please move it and accept my apologies.

[Red Devil]

No exemption I'm afraid - http://www.martinshepherd.co.uk/2017/01/09/stamp-d...
However, the surcharge is repayable if the NI property is sold within 3 years

[SS2.]

I was under the impression that a property being bought as a main residence was exempt from the 3% surcharge, even if the purchasers already owned a non-main residence / rented out property.

[TDutchy]

Red Devil - Thank you, much appreciated.

[Kompressor89]

I've just fallen foul of this revised stamp duty charge, had completely forgot about the new fee system......was expecting a bill of £12k but it came in at double that.

[Red Devil]

SS2. said:

I was under the impression that a property being bought as a main residence was exempt from the 3% surcharge, even if the purchasers already owned a non-main residence / rented out property.

Nope. The article I linked to deals with an almost identical situation to that the OP mentioned. The only difference being that the spouse concerned is living with either their own or their partner's parents rather than in rented accomodation.

In the circumstances where a purchaser owns a buy-to-let residential property but lives in a rented property themselves as their main residence, a higher rate of SDLT is payable if they decide to move out of the rented property and purchase a new main residence. The crucial point here is that the purchaser will own two properties at the point of completion of their purchase and they have not replaced their main residence by the sale of the previous main residence.