Stamp duty help

Flosmum_2

Anotherjoe finding it complicated as although we don't live in husbands house, I'd consider that our true residence as we planned to move temporarily and it's on permission to let. We are replacing that - thats the house with the equity in is we have to sell to buy. We did plan non sim so we're in a better position (but would have to sell to do the work it needs). My husband can afford the new his name only however only if we do a simultaneous sale and purchase which means we may lose the new house :-(

AnotherJoe

Anotherjoe finding it complicated
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Flosmum, did you look at the flowchart in the link i posted in post 4 ? I'd say anyone reading that including you would understand that it applied.

I note you now say "true" residence but there's no such thing legally defined that's a term you just created . There is just "main" which AIUI is determined by where you live, where you pay tax, where you are on the electoral roll, what you have told HMRC about where you live. And you even said in your first post "Me and hubby both own houses and both are on permission to let so neither are our main residence"

EDIT (see below posts)[STRIKE]AFAICS the only way you can escape it is to buy the new house and then sell the other two BTLs within 36 months so you can reclaim it.[/STRIKE]

davidmcn

AnotherJoe wrote: »

AFAICS the only way you can escape it is to buy the new house and then sell the other two BTLs within 36 months so you can reclaim it.

No, the only opportunity for reclaiming is if you are replacing your main residence.

AnotherJoe

davidmcn wrote: »

No, the only opportunity for reclaiming is if you are replacing your main residence.

I think you're right! :-(

Although the flowchart says you aren't due to pay if you own just one property at the end of the transaction, the rules for refunds are only to do with replacing main residence, not having one property.

So the OP may either have to move into one of the BTLs and make it their main residence first or just pony up the money.

Flosmum_2

Ok so only option to avoid is to move back to hubbys house while it sells then do a sim sale and purchase in his name. Thanks for your help

Vixstar

Flosmum wrote: »

Ok so only option to avoid is to move back to hubbys house while it sells then do a sim sale and purchase in his name. Thanks for your help

That may not work as I understand that for purposes of this extra SDLT married couples are seen as a single unit to prevent each of you from buying a house without having to pay the extra 3%. Though someone more knowledgeable will probably be able to clarify this.

davidmcn

Vixstar wrote: »

That may not work as I understand that for purposes of this extra SDLT married couples are seen as a single unit to prevent each of you from buying a house without having to pay the extra 3%. Though someone more knowledgeable will probably be able to clarify this.

Indeed - it won't work, and the earlier answers are correct. The only obvious tax avoidance scheme would be to get a divorce first...

fionaCastel

does the higher stamp duty apply if I was living in Ireland bought there but then I had to emigrate?
I didnt want to leave Ireland but had to in order to get a job...
Property there is in negative equity, I now want to buy in the UK.
Can anybody help?
thanks
fiona

davidmcn

fionaCastel wrote: »

does the higher stamp duty apply if I was living in Ireland bought there but then I had to emigrate?
I didnt want to leave Ireland but had to in order to get a job...
Property there is in negative equity, I now want to buy in the UK.

If you own property anywhere in the world then your UK purchase is an additional property and the same rules apply.

(there are, obviously, enforceability questions about this as HMRC probably don't have easy access to every property register on the planet...)

Flosmum_2

Thanks for the info all - means we will progress with the non simultaneous sale and purchase and pay it as doesn't sound like any way around it, then hope we get a refund once both have sold