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High Rate stamp duty?

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  • jakieahmed
    jakieahmed Posts: 14 Forumite
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    G_M wrote: »
    I really don't understand your problem, unless as others have suggested you are not dealing properly with your rental.

    Property B is your main home.
    You sell it, and replace it with Property C
    Property A is let, and remains unchanged.
    Higher rate SDLT is not charged.

    The only potential issues you face are if your mortgage lender and /or freeholder for property A don't know, and approve of, your letting. Or if you are failing to declare the rent to HMRC. Perhaps you are concerned that these facts might come to the attention of the relevant bodies if you have to prove that property A is let?

    My potential issue is that given the stamp duty form has been filled up by the solicitor and if hmrc does inquiry, it will clearly state that my voting place is property A and so as bank bodies etc. This could potentially mean im not replacing my main home.

    Also, the mortgage for property A has given the approval to rent.
  • G_M
    G_M Posts: 51,977 Forumite
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    jakieahmed wrote: »
    My potential issue is that given the stamp duty form has been filled up by the solicitor and if hmrc does inquiry, it will clearly state that my voting place is property A and so as bank bodies etc. This could potentially mean im not replacing my main home.

    Also, the mortgage for property A has given the approval to rent.
    Then either

    a) fill in the SDLT form yourself or
    b) instruct your solicitor what else to put in the form

    If HMRC enuire further, show them the tenancy agreement etc and it will be clear property A was not your main residence.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
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    edited 16 July 2017 at 10:37PM
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    jakieahmed wrote: »
    Thanks, but it does not answer my question. You have re-instantiated my situation in different words.
    eh? I presume you mean restated. Au contraire, it answers your question perfectly

    Q: can I claim B was the main residence and therefore claim it is being replaced with C?
    Answer: yes, rationale for answer - see previous post :think:

    Q: upon replacement of a main residence am i exempted from higher rate SDLT?
    Answer: yes (subject to the timing explained in the guide)

    (or should I assume you are in fact undertaking tax fraud with respect to A, and hence your reticence at being asked to prove it?)
  • jakieahmed
    jakieahmed Posts: 14 Forumite
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    G_M wrote: »
    Then either

    a) fill in the SDLT form yourself or
    b) instruct your solicitor what else to put in the form

    If HMRC enquire further, show them the tenancy agreement etc and it will be clear property A was not your main residence.

    thanks, sounds like a good idea!
  • jakieahmed
    jakieahmed Posts: 14 Forumite
    edited 16 July 2017 at 10:47PM
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    00ec25 wrote: »
    eh? I presume you mean restated. Au contraire, it answers your question perfectly

    Q: can I claim B was the main residence and therefore claim it is being replaced with C?
    Answer: yes, rationale for answer - see previous post :think:

    Q: upon replacement of a main residence am i exempted from higher rate SDLT?
    Answer: yes (subject to the timing explained in the guide)

    (or should I assume you are in fact undertaking tax fraud with respect to A, and hence your reticence at being asked to prove it?)

    Please stop jumping to conclusion. I did not say I'm not paying my taxes nor did I ask if there is a way to do tax fraud.

    My question was seeing as I made a mistake of not transferring post, voting paper etc would I still be able to fight my case if I need to, which someone suggested in the message above that I can show tenancy agreements etc.

    I was more concerned with the fact that it is "factual", which means if HMRC does a simple credit check, would show I'm registered in property A.

    Paying taxes for a property does not mean my main residence is still property B. I could still have tenants/lodger and live there and pay my taxes.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
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    jakieahmed wrote: »
    Paying taxes for a property does not mean my main residence is still property B. I could still have tenants/lodger and live there and pay my taxes.
    please carefully read what I wrote. I specifically said claiming the rent a room allowance. I did not say not "paying taxes"

    I have given you the actual reason why you can categorically claim B as a main residence despite the paperwork issue.

    I will post one link since you seem to be confused/doubtful. The rest you can find yourself.
    https://www.taxinsider.co.uk/1222-Private_Residence_Relief_Is_It_A_Residence.html
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