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  • FIRST POST
    • LizEstelle
    • By LizEstelle 5th Dec 17, 12:03 PM
    • 1,540Posts
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    LizEstelle
    Any help on Stamp Duty (higher rate)?
    • #1
    • 5th Dec 17, 12:03 PM
    Any help on Stamp Duty (higher rate)? 5th Dec 17 at 12:03 PM
    My husband and I came via inheritance into possession of a small flat some years ago whuch we've let out ever since.

    I have heard alarming stories that if we now want to sell our main home and buy another for us to live in - in other words, a situation completely separate from the issue of this small flat - we would have to pay stamp duty at a rate close to 8% on the new purchase because we would be considered as 'multiple property' owners.

    Can this be true? Would replacing our main residence incur this higher rate just on account of the simple fact of owning other property?
Page 1
    • ViolaLass
    • By ViolaLass 5th Dec 17, 12:05 PM
    • 5,148 Posts
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    ViolaLass
    • #2
    • 5th Dec 17, 12:05 PM
    • #2
    • 5th Dec 17, 12:05 PM
    Incorrect. If you sell your main residence and buy another house to be your new main residence, you do not have to pay the extra 3% SD. If you do not sell and buy immediately, you may have to pay it but you can claim it back as long as you buy the new home quickly enough.
    • LizEstelle
    • By LizEstelle 5th Dec 17, 12:08 PM
    • 1,540 Posts
    • 1,490 Thanks
    LizEstelle
    • #3
    • 5th Dec 17, 12:08 PM
    • #3
    • 5th Dec 17, 12:08 PM
    Phew, thanks. As you can imagine there were palpitations going on. A bit of a panic thrown into retirement planning!
    • 00ec25
    • By 00ec25 5th Dec 17, 12:15 PM
    • 5,558 Posts
    • 4,952 Thanks
    00ec25
    • #4
    • 5th Dec 17, 12:15 PM
    • #4
    • 5th Dec 17, 12:15 PM
    in a nutshell:
    - you are married (rules relate to that)

    - you own 2 properties, one of which is the marital main home. If you keep 1 and buy another you will be purchasing an "additional" property and thus fall within the higher rate rules

    - if you REPLACE the main home with another main home the higher rate is not applicable provided that you complete the sale before or on the same day as you complete the purchase. If not, you have 3 years in which to complete the sale and then claim a refund because in that case you would have to pay the higher rate at date of purchase, but then get it refunded.

    can you use google?
    https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

    https://www.gov.uk/government/publications/stamp-duty-land-tax-higher-rates-for-purchases-of-additional-residential-properties
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