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Stamp duty higher rate question..

Hi all


We have recently repatriated back to Uk after 10 years overseas and are in the process of buying our first home and have recently been shocked to discover we are most likely going to legible for the higher rate of stamp duty..


We have 3 buy to let properties between us both but have never lived in them or have ever had a main residence in UK.


So given this scenario and we are buying our first 'home' in UK is it correct that yes we will have to pay the higher rate of stamp duty? What about if the properties were set up in a trust or a company?


Thanks in advance!


Dan
«13

Comments

  • anselld
    anselld Posts: 8,262
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    edited 10 May 2017 at 10:05PM
    Yes, correct.

    If the properties were already in a Trust or Company then you would be OK, but there is no way to get to that point now without incurring significantly more tax.

    You are in the process of buying your fourth residential property. That is what the tax is designed for.
  • always_sunny
    always_sunny Posts: 8,314 Forumite
    Why don't you move in one of your properties instead?
    EU expat working in London
  • AdrianC
    AdrianC Posts: 42,189
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    You currently own three properties.
    You will own four properties at the end of this.

    Why are you surprised?
  • theGrinch
    theGrinch Posts: 3,122
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    The gangsters in government need an easy way to rob you on money you have already paid tax on and this is it.
    "enough is a feast"...old Buddist proverb
  • danfitzjohn
    danfitzjohn Posts: 24 Forumite
    Thanks everyone for your input on this. I think it's ridiculous the fact I have never owned a home to live in this country, i have invested in property as buy 2 let (and already paid stamp duty) and now I come back to live and have to pay a ridiculous amount of stamp duty on my first home!


    it seems to be that if I was a landlord that had previously owned a home and sold it 3 years ago then I could pay the lower rate of stamp duty however obviously that doesn't apply to me:


    This confirms the government’s decision that “purchasers with more than one property [like you] who dispose of a main residence have 36 months [up from the 18 proposed in the consultation] to buy a new residence before the higher rates apply”. In the later HMRC guidance notes, this translates as “higher rates will apply if the dwelling being purchased is not replacing the purchaser’s only or main residence”.
    https://www.theguardian.com/money/2016/nov/03/i-am-a-landlord-buying-a-new-home-will-i-pay-extra-stamp-duty


    I am aware that my situation is probably quite unique and would like to dig a bit further as i am of the opinion that buying my first 'home' I shouldn't be penalised with higher rate of stamp duty!


    Does anyone have any ideas??


    Thanks in advance!
  • Mojisola
    Mojisola Posts: 35,551
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    AdrianC wrote: »
    You currently own three properties.
    You will own four properties at the end of this.

    Why are you surprised?
    I think it's ridiculous the fact I have never owned a home to live in this country, i have invested in property as buy 2 let (and already paid stamp duty) and now I come back to live and have to pay a ridiculous amount of stamp duty on my first home!

    The law isn't about owning a property that you live in - it applies if you own more than one property.

    Why wouldn't it apply to you?
  • davidmcn
    davidmcn Posts: 23,596
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    i am of the opinion that buying my first 'home' I shouldn't be penalised with higher rate of stamp duty!

    Does anyone have any ideas??

    I think you should stop wasting your time and budget for the appropriate amount of tax. There aren't any cunning loopholes.
  • Cliveman_Pieman
    Cliveman_Pieman Posts: 85 Forumite
    edited 17 May 2017 at 9:33PM
    You must have known that each year, as the number of people in rented accommodation swell, that politicians would at some point seek to do something about it in order to win votes. They are the ultimate sycophants.

    Rather than actually relive the situation by, uh, building houses, they take the easy option and use the other tool in their fiscal arsenal - taxation.

    Your opinion that there is some loophole is incorrect. They want to hit BTL investors, that is what you are, so you are being hit. The way out is to sell your properties, or move into one of them.
  • 00ec25
    00ec25 Posts: 9,123
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    Does anyone have any ideas?
    yes, sell your properties then you won't be buying an additional one

    your "outrage" is ridiculous considering you have been living outside of the UK, amassing wealth through buy to let, and now expect not to be taxed on it whilst living in the UK.
  • gingercordial
    gingercordial Posts: 1,681
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    I am aware that my situation is probably quite unique and would like to dig a bit further as i am of the opinion that buying my first 'home' I shouldn't be penalised with higher rate of stamp duty!

    There is no "digging" to be done here. Your case is clear cut, you'll be buying an additional property on top of your BTL portfolio and you will be paying the extra SDLT.

    I might be of the opinion that the government shouldn't penalise me with income tax. I might be of the opinion that I should be able to jump off a tall building and fly. My opinion of what should and shouldn't be the case isn't going to change the laws of tax or indeed physics.
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