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High Rate stamp duty?

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jakieahmed
jakieahmed Posts: 14 Forumite
edited 16 July 2017 at 6:31PM in House buying, renting & selling
Many thanks in advance for reading this. My situation is:
I have 2 properties (say property A and property B).

I had property B since Sep 2015 and have lived in property B since then. All my credit related documents ie bank statement, council tax, utility bill account holder, voting and even driving license is registered to property A.
Property A has tenants for over 2 years now, however, they do not mind me having all those documents in my name.

In property B, I have been living there, however, I do not have anything in my name except council tax and old pay as you go meter utility bill. Earlier in June, I have sold property B as I did not like the area and now actively looking to buy another property as a replacement of the main residence.

I am now living elsewhere at my parent's council flat due to the recent sale.

My question is that, although I do not live in property A and I do not have much to show proof that I lived in property B, would I still be exempted from the higher stamp duty?


This maybe out of hand question but I thought I will ask:
Once the conveyancer fills up the Stamp Duty form and sends it to HMRC, would they assess the form and ask if anything required there and then. Or is it more of audit based and I could one day get a letter from HMRC asking for relevant documents if required?

PS: All properties are in England
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  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/570876/SDLT_Higher_rates_for_additional_properties.pdf
  • jakieahmed
    jakieahmed Posts: 14 Forumite
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    Pixie5740 wrote: »
    gov.uk/government/uploads/system/uploads/attachment_data/file/570876/SDLT_Higher_rates_for_additional_properties.pdf
    Yes I have read on this from section 3.30 to 3.35 but not sure if my question has been answered
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    Try reading the whole thing. You might want to pay particular attention to the final chapters of Q and A.
  • jakieahmed
    jakieahmed Posts: 14 Forumite
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    Pixie5740 wrote: »
    Try reading the whole thing. You might want to pay particular attention to the final chapters of Q and A.

    Thanks, and I did check the Questions and the Examples. No luck :(
  • 00ec25
    00ec25 Posts: 9,123 Forumite
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    the question of which is the main residence stems from Capital Gains tax case law and is based on the "matter of facts" and is heavily influenced by "degree of permanence, continuity or expectation of continuity."

    B was your home, but on paper you cannot prove it, although very obviously the fact that A is tenanted would instantly show continuity of occupation of A is impossible since it is not your home, it is the tenants.

    of course the problem will be if you kept all your paperwork at A in order to facilitate income tax fraud in respect of claiming they are lodgers, not tenants, and therefore you were claiming the rent a room allowance. if on the other hand you have declared your rental income correctly, then you should have no problem at all if challenged by HMRC showing that A was not your home despite your administrative laxity over personal paperwork.
  • jakieahmed
    jakieahmed Posts: 14 Forumite
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    00ec25 wrote: »
    the question of which is the main residence stems from Capital Gains tax case law and is based on the "matter of facts" and is heavily influenced by "degree of permanence, continuity or expectation of continuity."

    B was your home, but on paper you cannot prove it, although very obviously the fact that A is tenanted would instantly show continuity of occupation of A is impossible since it is not your home, it is the tenants.

    of course the problem will be if you kept all your paperwork at A in order to facilitate income tax fraud in respect of claiming they are lodgers, not tenants, and therefore you were claiming the rent a room allowance. if on the other hand you have declared your rental income correctly, then you should have no problem at all if challenged by HMRC showing that A was not your home despite your administrative laxity over personal paperwork.

    Thanks, but it does not answer my question. You have re-instantiated my situation in different words.
  • mrginge
    mrginge Posts: 4,843 Forumite
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    jakieahmed wrote: »
    Thanks, but it does not answer my question. You have re-instantiated my situation in different words.

    The question you need to answer is simple. Have you declared to hmrc that property A is tenanted and declared the appropriate rental income?
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    jakieahmed wrote: »
    Thanks, and I did check the Questions and the Examples. No luck :(

    That's funny because I can see a couple of examples in the Q & A about moving out your main residence, selling it and then buying a new main residence.

    Why is most of your paper work going to property A when it is tenanted and therefore cannot be your main residence?
  • jakieahmed
    jakieahmed Posts: 14 Forumite
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    Pixie5740 wrote: »
    That's funny because I can see a couple of examples in the Q & A about moving out your main residence, selling it and then buying a new main residence.

    Why is most of your paper work going to property A when it is tenanted and therefore cannot be your main residence?

    Moving and selling applies to my situation, however, I was concerned/worried about showing proof of living there.

    Unfortunately, it was my laziness lead to not changing address, which now could cost.
  • G_M
    G_M Posts: 51,977 Forumite
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    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?
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