Stamp duty on property flip

[Bruc3]

I'm looking to buy a 2nd property for £385,000 which will be a cash purchase.

I'm planning on flipping the house, but was confused about the stamp duty. I've read if you sell your main residence within 3 years, you can claim the SD back, but I can't seem to find much Info on re-selling the 2nd property.

Anyone able to offer some input?

[PM3]

https://www.ukpropertyaccountants.co.uk/a-complete...

[Panamax]

Bruc3 said:

Anyone able to offer some input?

There is always Stamp Duty (SDLT) on a property transfer unless it's a gift. Second homes/multiple properties simply get charged at a higher rate. It's only the difference between normal rate and higher rate that can be reclaimed if it's main residence replacement.

"Flipping" a property can be very inefficient because Stamp Duty becomes payable twice. [There's likely to be Income Tax on any gain as well because flipping properties is considered to be trading. If you manage to sidestep Income Tax then Capital Gains Tax is likely to apply in any event.]

To "flip" a property without doubling the Stamp Duty you need to do it by this method, and in the example you are "B",
A contracts to sell the house to B. B contracts to sell the house to C.
A then transfers the house directly to C. (i.e. B's name never goes on the Land Registry)

You need to get paid professional advice on all of this because there are time limits on how long things can be left in limbo.

[bennno]

Bruc3 said:

I'm looking to buy a 2nd property for £385,000 which will be a cash purchase.

I'm planning on flipping the house, but was confused about the stamp duty. I've read if you sell your main residence within 3 years, you can claim the SD back, but I can't seem to find much Info on re-selling the 2nd property.

Anyone able to offer some input?

Unless the property is uninhabitable then you pay stamp duty, often at a higher rate on second homes, you can’t claim it back but can generally offset it against any profit, not any profit is subject to capital gains tax.