Confused with new SDLT

zweety

I have a question:

I have a flat, which I am remortgaging as a let to buy in order to buy a house.

I understand that the SDLT is increasing from 1st April. But I don't understand what SDLT will apply on my house. since it wil be my main home - but I do not intend to sell my existing flat.

I found confusing information online.

Could someone help on this?

kingstreet

You are increasing your property portfolio from one to two, so the surcharge will apply.

What is the purchase price?

If you sell the flat within eighteen months, you will get the surcharge refunded, if the plans are adopted as published in November.

sam2015_2

The extra 3% stamp duty will be on the new purchase which is going to be your second property. You are eligible for refund of this if you sell your flat within the 18 months.

Here is the consultation document with examples...
https://www.gov.uk/government/consultations/consultation-on-higher-rates-of-stamp-duty-land-tax-sdlt-on-purchases-of-additional-residential-properties/higher-rates-of-stamp-duty-land-tax-sdlt-on-purchases-of-additional-residential-properties

zweety

Thank you for your advice.

The flat is worth £250k and the house, which is where I will be living is worth £525k. So I understand that the raised SDLT would apply on the house purchase if I complete after 31st March 2016. Damn.

kingstreet

Yep. £525,000 = £32,000 SDLT.

amnblog

Just in case you want to send a valentines card


http://www.georgeosborne4tatton.com/