buying a home

stranger12

Hi Guys,

if I do not own any property and my wife does, if we buy a second residential place , is that seen as second home or first home?

it is my first home and my wife's second home.

Also would we pay the higher stamp duty rate?

Thanks

Malmo

You will both be treated as one unit, so yes, the higher rate applies as your unit will own 2 properties.

Have you researched the official documentation readily available on the gov.uk website? Read:

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

stranger12

is this website legit ?

http://fiducia.co.uk/?utm_source=google&utm_medium=cpc&utm_term=+stampduty&gclid=CPTq0s2J2csCFQccGwodoNoMjg

on a 400k flat which attracts 22k of stamp duty , they are suggesting I will pay 10k only .

I spoke to them and she was a bit sneaky saying they use a tax strategy which they can't disclose and I have to use them for the whole process including conveyancing of the flat. she said the flat still attracts the 22k but they will give me 60% back ?

how is this possible legally ?

Stevie_Palimo

stranger12 wrote: »

is this website legit ?

http://fiducia.co.uk/?utm_source=google&utm_medium=cpc&utm_term=+stampduty&gclid=CPTq0s2J2csCFQccGwodoNoMjg

on a 400k flat which attracts 22k of stamp duty , they are suggesting I will pay 10k only .

I spoke to them and she was a bit sneaky saying they use a tax strategy which they can't disclose and I have to use them for the whole process including conveyancing of the flat. she said the flat still attracts the 22k but they will give me 60% back ?

how is this possible legally ?

There is probably ways around this charge but would you really trust somebody that you A:- Do not know with this and B: will not divulge the details as to how it is done.

There is a saying in life: If it seems to be good to be true it more than often is untrue.

Bluebirdman_of_Alcathays

stranger12 wrote: »

is this website legit ?

http://fiducia.co.uk/?utm_source=google&utm_medium=cpc&utm_term=+stampduty&gclid=CPTq0s2J2csCFQccGwodoNoMjg

on a 400k flat which attracts 22k of stamp duty , they are suggesting I will pay 10k only .

I spoke to them and she was a bit sneaky saying they use a tax strategy which they can't disclose and I have to use them for the whole process including conveyancing of the flat. she said the flat still attracts the 22k but they will give me 60% back ?

how is this possible legally ?

As often as these schemes come around, they are shut down by HMRC. Then you're left with the SDLT bill you originally tried to avoid, and they've walked away with your fee.


http://www.fridaysmove.com/conveyancing-solicitor-and-stamp-duty-mitigation/14888

marksoton

stranger12 wrote: »

I spoke to them and she was a bit sneaky saying they use a tax strategy which they can't disclose and I have to use them for the whole process including conveyancing of the flat. she said the flat still attracts the 22k but they will give me 60% back ?

how is this possible legally ?

Well considering they clearly state on the website they'd like to be honest with their clients as to what it is they're doing at each stage i'd say they've fallen at the first hurdle!

stranger12

makes sense, I rather pay 10k than be fined and have a criminal record

Do you have to pay that at the same time or can pay it later within 30 days ?

I have asked few lenders and they said the stamp duty will need to be paid in cash.

I was thinking i could take mortgage out and then a loan to pay stamp duty after property was completed

Bluebirdman_of_Alcathays

stranger12 wrote: »

makes sense, I rather pay 10k than be fined and have a criminal record

Do you have to pay that at the same time or can pay it later within 30 days ?

I have asked few lenders and they said the stamp duty will need to be paid in cash.

I was thinking i could take mortgage out and then a loan to pay stamp duty after property was completed

Nope - it's cash up front (well, within 30 days). You can't add it to the mortgage.


AS obvious as it sounds, the easiest way to avoid the tax is to sell your additional home. That is exactly what this tax is designed to achieve - to take more homes away from those that have more than one, and make them available for first time buyers, who have none.

booksurr

Malmo wrote: »

You will both be treated as one unit, so yes, the higher rate applies as your unit will own 2 properties.

Have you researched the official documentation readily available on the gov.uk website? Read:

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

these are called stamp duty mitigation schemes...

if you use the forum search function on that term you will find multiple threads where people tried then and are now facing bills + interest and penalties from HMRC as the legal position is that HMRC have said all along that they regard "mitigation" as evasion and so seek to close these schemes as soon as they find them. Of course that takes time, time during which the scheme folds and the scheme owners pocket your fee and quite legally disappear as the scheme is now bust, but, leaving you to face HMRC alone....

stranger12 wrote: »

makes sense, I rather pay 10k than be fined and have a criminal record

Do you have to pay that at the same time or can pay it later within 30 days ?

I have asked few lenders and they said the stamp duty will need to be paid in cash.

I was thinking i could take mortgage out and then a loan to pay stamp duty after property was completed

it is not a criminal offence!

nonetheless, if you require a mortgage then the Council of Mortgage Lenders (CML) require that your solicitor attests to the fact you can pay the SDLT before the mortgage funds are released. No solicitor would do that (it makes them personally liable!) unless they already hold the money from you in their client account. So the answer to your Q is if you need a mortgage you cannot pay the SDLT 30 days after completion, you need the cash upfront with the solicitor or you won't be buying anything