We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
First Time Owner Occupier - Higher Rate Stamp Duty
Comments
-
As a rough rule of thumb anything which sees the number of properties you own increase, the SDLT surcharge will apply.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
-
You are not disposing of a main residence to buy another main residence, so the higher rates apply. That's the only exception."Real knowledge is to know the extent of one's ignorance" - Confucius0
-
Hi, thanks for your replies all. I did suspect it would be the case, but I thought there might have been something around the change of "main residence" which may have meant I would be exempt from the dreaded 3%!
I can see what you mean MRJB - I understood that their was the caveat that your previous main residence would have to be disposed to stop people building a portfolio that way, but there could have been a loophole where first time buyers could purchase two properties before paying a the higher rate of stamp duty.0 -
Pay the your tax like everyone else"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
-
You aren't a first time buyer though, as you are already a property owner. Even if you never lived in the part-owned properties, you still are already a property owner.
If you don't want to pay the extra tax, either sell all your property-shares to your relatives, or buy one of them out and move into one of the properties you already part-own.0 -
Cherry_Gale wrote: »or buy one of them out and move into one of the properties you already part-own.
That doesn't work either if they still have an interest in more than one property. Unless the transaction is under £40K."Real knowledge is to know the extent of one's ignorance" - Confucius0 -
Raymondo84 wrote: »Hi, thanks for your replies all. I did suspect it would be the case, but I thought there might have been something around the change of "main residence" which may have meant I would be exempt from the dreaded 3%!
I can see what you mean MRJB - I understood that their was the caveat that your previous main residence would have to be disposed to stop people building a portfolio that way, but there could have been a loophole where first time buyers could purchase two properties before paying a the higher rate of stamp duty.
It's very simple...
Situation 1
Property already owned. Extra property being bought. Extra SDLT payable? Yes.
Situation 2
Property already owned. One property being changed for another. Neither is main residence. Extra SDLT payable? Yes.
Situation 3
Property already owned. One property being changed for another. One is main residence, one is not. Extra SDLT payable? Yes.
Situation 4
Property already owned. One property being changed for another. Both are main residence. Extra SDLT payable? No.
Which of those situations do you think yours is most like? Clue: It's not 4.0 -
That doesn't work either if they still have an interest in more than one property. Unless the transaction is under £40K.
Sell to one and buy from the other?
Swap shares with relatives so that the OP owns a bigger part of just 1 property, then buy the remainder of that property from whoever, and live there.
(I am not a lawyer)0 -
Cherry_Gale wrote: »You aren't a first time buyer though, as you are already a property owner. Even if you never lived in the part-owned properties, you still are already a property owner.
If you don't want to pay the extra tax, either sell all your property-shares to your relatives, or buy one of them out and move into one of the properties you already part-own.
I never said I was a first time buyer, when I referred to first time buyer in post number 14 I was referring to the situation MRJB described which would have left a possible loophole which HMRC have quite correctly stopped.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.7K Banking & Borrowing
- 254.9K Reduce Debt & Boost Income
- 456.1K Spending & Discounts
- 248.3K Work, Benefits & Business
- 605.9K Mortgages, Homes & Bills
- 179K Life & Family
- 263.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.7K Read-Only Boards