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landlord stamp duty - off plan new build already exchanged

2

Comments

  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Name Dropper Photogenic First Anniversary First Post
    "Second homes" means in addition to your main home .... NOT ... the second home you bought after your first one.

    It refers to two at the same time. Rich people stuff.

    One home at a time = nothing has changed for you.

    Rich bugg4hs with BTLs or homes in the country .... hardy-ha-ha time.
  • Knicknack
    Knicknack Posts: 29 Forumite
    I am not selling my first home. Therefore this will be a second home.
  • Knicknack
    Knicknack Posts: 29 Forumite
    After a bit of digging around I found the following explanation:
    [SDLT2 applies from 1 April. Completion must happen on or before 31 March 2016 to avoid it. The one exception is if contracts were exchanged before 25 November (Autumn Statement day) but completion is after 31 March then SDLT2 will not apply. That will almost exclusively apply to property that was bought off-plan.

    From 1 April purchasers will have to fill in a declaration that they do or do not own another home. The conveyancer or solicitor will use that to decide which rate of SDLT applies.
  • theonlywayisbristol
    theonlywayisbristol Posts: 2 Newbie
    That's great for me, where did you find that? Phew!
  • bigfreddiel
    bigfreddiel Posts: 4,263 Forumite
    This wording is a bit confusing:

    From 1 April purchasers will have to fill in a declaration that they do or do not own another home. The conveyancer or solicitor will use that to decide which rate of SDLT applies.

    If you sell and buy you couldn't say they didn't own another home.

    I guess strictly speaking at the point of completion you simultaneously stop owning your old home and own your new home.

    Just a thought!

    fj
  • booksurr
    booksurr Posts: 3,700 Forumite
    bigfreddiel wrote: »
    This wording is a bit confusing:

    From 1 April purchasers will have to fill in a declaration that they do or do not own another home. The conveyancer or solicitor will use that to decide which rate of SDLT applies.

    If you sell and buy you couldn't say they didn't own another home.

    I guess strictly speaking at the point of completion you simultaneously stop owning your old home and own your new home.
    more details have now been published and are listed on the Paul lewis blogsite found by another poster and scenarios are now being answered

    for example:
    - in your case there is an 18 month overlap period allowed between purchase and sale. However, it appears you must nonetheless pay the SDLT on the new property within 30 days of purchase, but can then claim the cash back from HMRC within 18months on proof of sale of the first property.

    Obviously rather a bad result for your own cash flow

    - as for the OP's question it specially states if you have exchanged before 25 Nov 2015 then you will not pay the extra and the 18 month window does not apply as this concession is aimed directly at those buying off plan who have already exchanged and would therefore be penalised otherwise

    details here: http://paullewismoney.blogspot.co.uk/2015/11/stamping-on-additional-homes.html
  • Knicknack
    Knicknack Posts: 29 Forumite
    Yes sorry I should have provided link.

    For me it confirms I will be facing an extra £3,500 cost on my proposed purchased, as I will not exchange till December.

    Annoying, but I suppose I will probably accept it and move on, no point crying about it.
  • nonolerigolo
    nonolerigolo Posts: 290 Forumite
    First Post First Anniversary Combo Breaker
    I have only reserved the new build and pay for the extra fittings ..I have not exchange contract yet. Would that work in my case?
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Name Dropper First Anniversary First Post
    nonolerigolo wrote: »
    I have only reserved the new build and pay for the extra fittings ..I have not exchange contract yet. Would that work in my case?

    No, it wouldn't.
  • postoffice
    postoffice Posts: 2 Newbie
    HMRC told me on Thursday 10/12 that if already exchanged on a property before 25/11, but not completing until after 1/4 you can choose to pay existing rate on your second home purchase.
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