First Time Owner Occupier - Higher Rate Stamp Duty

teneighty

It will be interesting to see how the new stamp duty rules play out in practice.
I suspect that buyers will try to get the purchase price reduced so that they end up paying the market value including the stamp duty, but I think the market is too strong for that at the moment.
Interesting times ahead though as all the pundits seem to be suggesting a "correction" is on the cards.

AdrianC

teneighty wrote: »

I suspect that buyers will try to get the purchase price reduced so that they end up paying the market value including the stamp duty, but I think the market is too strong for that at the moment.

If an investment buyer is competing against a non-investment buyer, that'll never work - since the non-investment buyer will always be willing to pay 3% more to end up at the same purchase price.

kinger101

Cherry_Gale wrote: »

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)

If you don't understand how SDLT rules work, and can't be bothered to look it up, then giving OP advice is rather pointless.

Raymondo84_2

teneighty wrote: »

It will be interesting to see how the new stamp duty rules play out in practice.
I suspect that buyers will try to get the purchase price reduced so that they end up paying the market value including the stamp duty, but I think the market is too strong for that at the moment.
Interesting times ahead though as all the pundits seem to be suggesting a "correction" is on the cards.

A friend had an offer on a property which he was proceeding with up until mid march. As the sale dragged the buyer had a survey done by his builder which showed there was circa £10k worth of work which needed doing on a flat rough! It was a cash buyer, I suspect he saw that the April deadline was looming and was trying to absorb the difference!


In all though I think it's an uncharacteristically good move from this government, I had spare cash a while ago, I wasn't in a position to buy but instead invested on some properties I did up with family. One of which wasn't much more than the extra stamp duty I'll pay on a £200k so that'll help as a deposit down the line....

[Deleted User]

kinger101 wrote: »

If you don't understand how SDLT rules work, and can't be bothered to look it up, then giving OP advice is rather pointless.

That's a fair point. I have never looked into SDLT on buying or selling shares of properties, and don't really know the details.

I'm a random person on the internet as they say. Still it's good to know the wisdom of crowds helps to winkle out the half-baked and half-joking suggestions from the more serious and better informed.

brodawel

OP, I found this

"The 3% surcharge only applies to the purchase of second homes and residences. So if the property you are buying is your first home, or it will directly replace your main residence then the surcharge will not apply. This is true even if you own multiple homes, but the one you are buying will replace your main residence. However moving out of rented accommodations does not constitute a main residence. The Treasury is clear that the last residence needs to be sold in order to escape the surcharge, if not the charge will still apply."

Raymondo84_2

Hi,


Just in case anyone else finds themselves in a similar situation, after some correspondence with HMRC they advised that as my personal share of the properties I already own are less than £40k, they are not taken into account when considering the stamp duty status on a purchase after 01/04/2016.


See 2.15 on the link MRJB provided above,

saverbuyer

Raymondo84 wrote: »

Hi,


Just in case anyone else finds themselves in a similar situation, after some correspondence with HMRC they advised that as my personal share of the properties I already own are less than £40k, they are not taken into account when considering the stamp duty status on a purchase after 01/04/2016.


See 2.15 on the link MRJB provided above,

Think I'll call BS on this.

Soundgirlrocks

saverbuyer wrote: »

Think I'll call BS on this.

It might well be right. I had a similar situation when I bought my first home FTB were getting stamp duty relief, but my situation wasn't clear as I inherited 50% of my late fathers house, the house is held in trust with my stepmother having the right to live in it for the rest for her life (she is only 50) I couldn't sell it or do anything with it.

Everyone including my solicitor thought it was tough luck and I'd have to pay the STD, however we wrote to HMRC and supplied all the documents and they came back saying I would be exempt. OP may be in a similar situation.

AdrianC

Raymondo84 wrote: »

Just in case anyone else finds themselves in a similar situation, after some correspondence with HMRC they advised that as my personal share of the properties I already own are less than £40k, they are not taken into account when considering the stamp duty status on a purchase after 01/04/2016.

See 2.15 on the link MRJB provided above,

<£40k is certainly discounted for the 3% on any subsequent purchases, so it does make some sense that it'd be discounted for the pre-existing properties, too.