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Stamp Duty Calculator and Q&A discussion

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Comments

  • [Deleted User]
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    I'm not sure your solicitor is correct on this one as there are concessions for those in the armed forces.  

    https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09530
    I'm afraid you have missed the context of that link, it refers to purchases by non natural persons. Non natural person means a "body corporate" ie: company or an institution (eg school) https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09510

    It is not dealing with the Op's context of a property purchase by living person(s)
    It might have been CGT I was thinking about.  Ooops.
  • [Deleted User]
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    I currently own one BTL flat, which is up for sale.
    I'm "between" main residences.
    If I now buy a main residence before selling the BTL, do I pay 0% (as it isn't a second home) or 3% (as it's a second property)?
    What do you mean by between residences? How long since you last lived in a main residence you owned?
  • [Deleted User]
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    I currently own one BTL flat, which is up for sale.
    I'm "between" main residences.
    If I now buy a main residence before selling the BTL, do I pay 0% (as it isn't a second home) or 3% (as it's a second property)?
    What do you mean by between residences? How long since you last lived in a main residence you owned?
    About 6 years...
    If you complete the purchase of your new home before completing the sale of the BTL then you'll pay the higher rate of SDLT.
  • RBlack
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    Please help. I am purchasing an additional property and when using the sdlt calculator on .gov it does not dis regard the 1st £40,000  as stated on the mse website. Any ideas? 
  • [Deleted User]
    [Deleted User] Posts: 3,297 Forumite
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    edited 20 October 2020 at 10:47AM
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    RBlack said:
    Please help. I am purchasing an additional property and when using the sdlt calculator on .gov it does not dis regard the 1st £40,000  as stated on the mse website. Any ideas? 
    What’s the purchase price and how much does the calculator say will be due? 
  • oldbikebloke
    oldbikebloke Posts: 1,096 Forumite
    First Post Name Dropper
    edited 20 October 2020 at 10:19AM
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    RBlack said:
    Please help. I am purchasing an additional property and when using the sdlt calculator on .gov it does not dis regard the 1st £40,000  as stated on the mse website. Any ideas? 
    either the property (your share of) is worth more than £40k or it isn't

    if it is, then you have misunderstood the rules, there is no "disregard". It is not a tax free allowance, it is a threshold to determine if higher rate applies. If it applies, it applies to the whole consideration paid
    https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09770

    if the property is <40K then you have used the calculator incorrectly as there would be no additional rate in the first place

    can you post a link to where you read on MSE about a disregard, because if that is what it says, it is wrong and they need to told to correct it to be accurate. As far as I can see it is more likely you have misread the MSE info as it clearly states the rules:
    https://www.moneysavingexpert.com/mortgages/stamp-duty/ 

    Yes, however you will still have to pay some stamp duty. This is how it works in:

    • England and Northern Ireland. If you're buying an additional property you will also benefit from the changes to stamp duty, however not to the same extent as those buying a main residential property.

      Here you'll pay 3% on top of the standard rate on total price for all properties over £40,000. For example, for those buying an additional property in England or Northern Ireland, you will now pay 3% on anything up to £500,000 (properties under £40,000 are exempt), and 8% on the portion above that up to £925,000.

      Previously the rate was 3% on anything up to £125,000, 5% on anything between £125,001 and £250,000, and 8% on anything between £250,001 and £925,000.

    • Wales and Scotland. The rates and bands for additional property buyers have not changed in Wales and Scotland. In Wales, you normally pay an extra 3% on any tax band your property falls under, and in Scotland it's an extra 4%. You can see what tax you'll pay for an additional property in these countries using the tables below.
  • dav2016
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    Hello 
    I hope you could help.
    I own my flat for over 10 years. We have lived there with my partner and later with son 

    We had to move closer to better schools and we rented my flat. We moved out less then 3 years ago 

    We are renting and not owning second property. We started looking at houses, but I am not sure how much we would pay stamp duty while I still own my flat ? 

    We would like to sell it, but we can’t find the buyer. My partner is first time buyer but we would like to buy our main residence together for 650k 

    Could we avoid the extra 3% stamp duty charge as we moved out less then 3 years ago from the flat and flat was always our main residence until issue with schooling arrived... 

    Please help - is there any chance we could avoid extra 3% stamp duty surcharge? 

    Thank you so much for advice 

  • SDLT_Geek
    SDLT_Geek Posts: 2,551 Forumite
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    dav2016 said:
    Hello 
    I hope you could help.
    I own my flat for over 10 years. We have lived there with my partner and later with son 
    We had to move closer to better schools and we rented my flat. We moved out less then 3 years ago 
    We are renting and not owning second property. We started looking at houses, but I am not sure how much we would pay stamp duty while I still own my flat ? 
    We would like to sell it, but we can’t find the buyer. My partner is first time buyer but we would like to buy our main residence together for 650k 
    Could we avoid the extra 3% stamp duty charge as we moved out less then 3 years ago from the flat and flat was always our main residence until issue with schooling arrived... 
    Please help - is there any chance we could avoid extra 3% stamp duty surcharge? 
    Thank you so much for advice 
    The 3% extra will be due if you jointly buy a new property whilst still owning the flat.
    If you can sell the flat within 3 years after your purchase, you should be able to recover the 3% extra.  But that only applies if you buy the new place within 3 years of moving out of the flat.
  • dav2016
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    Thank you - that extremely helpful. 
    Just to confirm and clarify - the extra stamp duty  tax is refundable only if we buy property within 3 years after our moving out from the flat ?
    Why not from the time we buy our new property together ? 

    Could my partner buy new house alone ? Would he has to pay for extra 3 proc if we moved in together but he will be sole owner and first time buyer .. thank you 

  • SDLT_Geek
    SDLT_Geek Posts: 2,551 Forumite
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    dav2016 said:
    Thank you - that extremely helpful. 
    Just to confirm and clarify - the extra stamp duty  tax is refundable only if we buy property within 3 years after our moving out from the flat ?  Yes, that is one of the conditions, you must buy the new house within three years of moving out of the flat..
    Why not from the time we buy our new property together ?   I do not see the distinction you are making here.

    Could my partner buy new house alone ? Would he has to pay for extra 3 proc if we moved in together but he will be sole owner and first time buyer .. thank you  
    If your partner is the sole owner of the new property, then assuming you are not married or civil partners then your property owning posittion should not be relevant to the question of whether the 3% surcharge applies to the purchase.  But this is unlikely to apply if you are putting in any capital to the purchase.
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