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New Stamp Duty - Second Home Main Residency
Comments
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Sorry i wasn't just repeating myself i was trying to reply direct to Pixie5740's point.
Anyway, to me it does seems to me that if you don't currently own the home you live in i.e. you are renting you there should be some sort of exemption.
Also if the second property you own is worth less than 40,000 it doesn't count either. We paid 43,000 between three of us, so my share is worth 14,300.
It does feel like i am falling through a crack here somewhere.
Not good for you but that is the way it is. My guess (and it's only a guess) is that there are few people who own a holiday home or BTL and don't own their own home. Though there was another poster a few days ago who owned a BTL and was renting.
Sadly this forum doesn't alter the HMRC guidelines just discusses them so fair or not fair doesn't come into it.
Would it be possible for you to sell/give your share of your holiday home away so the extra stamp duty doesn't apply?
I think you need to start thinking how you can legally avoid the extra tax, do you have family who could own it for you?0 -
Something doesn't seem right here...
Because the buy to let landlord already had owned his home as well, he doesn't pay the higher stamp duty.
But i do not own my own home i am renting, so because of that i would have to.
Sounds unfair to me! :mad:
You could look at it another way, if the stamp duty didn't apply in your situation it would be very simple to get around the changes (e.g. let out current home, go and rent somewhere for a short period, and then buy new primary residence).
The exception with purchasing a new primary residence, as in the BTL example, is just to ensure those who already own multiple properties don't get hit with the extra stamp duty each time they change their main home. There's a difference between this and your situation - you're looking to purchase a second property, something these tax changes are designed to discourage.0 -
Would it be possible for you to sell/give your share of your holiday home away so the extra stamp duty doesn't apply?
Yes i have no interest in owning this property, I actually did it as a favour because they live outside the UK and it was a place for them to stay when they regularly visit the UK and they couldn't get a mortgage. We took out a Joint tenants agreement.
Can i just give my share to them?0 -
Will the 3% on your house purchase be less than the £14,300 you are contemplating giving away??0
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Yes i have no interest in owning this property, I actually did it as a favour because they live outside the UK and it was a place for them to stay when they regularly visit the UK and they couldn't get a mortgage. We took out a Joint tenants agreement.
Can i just give my share to them?
Only if the mortgage company agree to removing you from the mortgage.0 -
See the government example i pasted compared to my situation.
Buy to let landlord
10 buy to let properties + 1 owned house for main residency
Doesnt pay higher stamp duty when moving
Me
1 holiday home + renting house for main residency
Does pay higher stamp duty when movingSorry i wasn't just repeating myself i was trying to reply direct to Pixie5740's point.
Anyway, to me it does seems that if you don't currently own the home you live in i.e. you are renting you there should be some sort of exemption.
Also if the second property you own is worth less than 40,000 it doesn't count either. We paid 43,000 between three of us, so my share is worth 14,300.
It does feel like i am falling through a crack here somewhere.
You are missing my point. The new legislation isn't just designed to target BTL investors. It is also designed to target people buying second homes such as holiday homes. Holiday homes which take housing stock away from the local community and push up prices in the area.
As booksurr said, if you don't like the proposed changes then take part in the consultation.0 -
AnotherJoe wrote: »Will the 3% on your house purchase be less than the £14,300 you are contemplating giving away??
Well they could pay me back i suspect.
They didn't have the money at the time to buy it and couldn't get a mortgage because they lived outside the UK, so i stepped in and bought a 3rd so they could buy it.0 -
You are missing my point. The new legislation isn't just designed to target BTL investors. It is also designed to target people buying second homes such as holiday homes. Holiday homes which take housing stock away from the local community and push up prices in the area.
As booksurr said, if you don't like the proposed changes then take part in the consultation.
My point is i am getting penalised for not buying my own home.
It is ok if you bought a buy to let/ second home and your own home = no penalty.
But if you only bought a buy to let/ second home, you are getting stung.
That is the point....0 -
You don't have to get "stung" as you put it. You could get the other owners of the holiday let to buy you out. You could ask the other owners to contribute towards the additional SDLT cost since you're only a joint owner of the holiday home to help them out. You could take part in the consultation process.0
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My point is i am getting penalised for not buying my own home.
It is ok if you bought a buy to let/ second home and your own home = no penalty.
But if you only bought a buy to let/ second home, you are getting stung.
That is the point....
They're not purchasing an additional property, you are.0
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