Stamp Duty Calculator and Q&A discussion

SDLT_Geek

Raving_Mad said:

Any advice welcome on my situation.
 In 2006 I sold my main residence in England and did not buy another house as I moved into someone else's house. Prior to 2006 I had bought a small place in France which I had intended to renovate, which I still own and use for holiday breaks. It still needs a lot of work done.
Now circumstances have changed again and I am getting back on the property ladder in the UK. I am told that if my French property is worth > £40k my new purchase in England counts as a 2nd property so I will have to pay extra stamp duty. This seems so unfair, as it means I will have to pay more SD than if I was a non-UK resident!! And this rule  penalises anyone renting in the UK but owning a cheap holiday home abroad, whereas the same stamp duty penalty would not apply to a UK house owner with a holiday home abroad.
I am planning to sell the French property next year. Does the 3 year rule apply to enable me to claim back the 2nd home stamp duty? The annoying thing is that the property isn't worth much more than 50000€ so it's very borderline in any case. 

It is correct that the extra 5% SDLT will be payable on your purchase in England if, when you complete your purchase, you still own the property in France and it is worth £40,000 or more.

You would not be entitled to recover the extra 5% if you sell the French property within the three years after your purchase.  That is because you have not lived in the French property as your only or main residence.