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Stamp Duty Calculator and Q&A discussion

edited 31 March 2010 at 12:06PM in House buying, renting & selling
139 replies 110K views
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  • Benzene wrote: »
    This is a query in regards to my dad willing to invest in the UK. He is based in Qatar and renting. He does not own any property in the world. He is not a UK citizen nor resident in the UK. He is citizen of Pakistan. He is willing to buy a property in the UK on cash for BTL (Buy to Let) purposes. Would he be paying SDLT as he is a genuine first time buyer? :)
    you have overlooked one very important rule which means your father cannot possibly claim first time buyer releif from SDLT....

    the purchaser or, if there is more than one, each of them, is a first time buyer, who intends to occupy the dwelling as their only or main residence,

    he intends to live in Qatar and wants to get a BTL property so fail and fail (and quite rightly so, UK tax relief is not intended to make overseas investors rich)

    https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/661728/8274_guidance_note_SDLT_relief_for_first_time_buyers.pdf
  • If I, a first-time buyer, buy a house with my partner (who is not a FTB) on a joint mortgage, do I have to pay stamp duty?
  • p00hsticksp00hsticks Forumite
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    If I, a first-time buyer, buy a house with my partner (who is not a FTB) on a joint mortgage, do I have to pay stamp duty?


    If you're buying the property jointly then you won't qualify for the FTB exemption unless you are both FTBs, so stamp duty will be payable (assuming the property price is over £125k).
  • My sister and I own our late mothers house as 50/50 tenants in common. The property is currently rented - and has been since 2010. It has recently been valued at £230K. She wants out and I am considering buying her out. Given that the value of my payment to her would be les than the £125 threshold will I be liable for stamp duty or - since it is not my residence - will I be liable for 3% on any agreed payment? Thanks
  • SDLT_GeekSDLT_Geek Forumite
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    auntgiddy wrote: »
    My sister and I own our late mothers house as 50/50 tenants in common. The property is currently rented - and has been since 2010. It has recently been valued at £230K. She wants out and I am considering buying her out. Given that the value of my payment to her would be les than the £125 threshold will I be liable for stamp duty or - since it is not my residence - will I be liable for 3% on any agreed payment? Thanks
    If you own another property the 3% surcharge will be due. SDLT is due if the chargeable consideration is £40K or more.
  • Thanks to SDLT Geek. Another question has occurred to me since your reply. You say anything in excess of £40K. But will that be on the full value of the house - given that I already own half - or just on the monies that change hands between me and my sister? Thanks
  • SDLT_GeekSDLT_Geek Forumite
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    The "chargeable consideration" for SDLT is normally the amount you pay. It can be complicated if there is a mortgage on the property. If the chargeable consideration is £40K or more then the 3% is due on the whole, not just on the amount over £40K.
  • Hello,

    I have a general query on this I hope someone can help with?
    We are purchasing a new build with part exchange, as part of the signing of the missives the house builder requires a 2% deposit (£6,800) which comes off of the sale price of the house. We have been told they will accept a lower amount if we were to suggest it (£500 was mentioned), so my question is, would paying the full £6,800 lower the amount of LBTT we would be required to pay as the sell would then be £333,200?
    To be fair we will likely pay the £6,800 anyway as the alternative is a higher sell price which means a higher mortgage amount and amount to pay back in interest (and it won't impact our LTV), but I am just curious if the LBTT would consider the 2% we have already paid, or whether it would be based on the initial sell price/value? - the difference being £680.
    Hope that makes sense!

    Thanks!
  • Hey everyone,

    Trying to figure out whether we are enititled to FTB relief or not.

    We bought a house with my girlfriends parents, they sold their house and put in the equity as the deposit which was 43% of the value of the new house and then we took the remaining 57% out as a mortgage.

    The mortgage has all four of our names on but only me and my girlfriend pay it. As we were buying with non first time buyers we assumed we wouldn't get any FTB stamp duty relief on the new house so paid the 5% stamp duty which was £8,000.

    We've had a letter from Relatus saying we're owed £4,400 on our stamp duty.

    If we were eligible for the FTB relief i worked out we should of paid 5% of the amount that exceeded £300,000 - which would of been £3000 (5% of £60,000 as the house was £360,000)

    Does anyone know whether we have a claim or not and also if we do is it an issue if i go directy through HMRC to avoid the 25% charge from relatus?

    Aplogies for the essay, thanks.
  • SDLT_GeekSDLT_Geek Forumite
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    It sounds as if your girlfriend’s parents have a share in the property so first time buyers relief will not apply.
    Does the house have a granny annex? That might be the angle Relatus are following.
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