does the new stamp duty on second property apply to me?

cozzyman

hi sorry if this has been asked before but was wanting some
advice on buying a new primary property, i have a flat and a house
which i rent out at present but have been living with a partner at his
residence for 5 years but have decided to buy my own place
which i intend to live in as my primary residence, will i be hit
by the new stamp duty of 3% on total of property and if so is there any way for me to avoid it other than selling the other two property first? ie like signing the other property's over to someone else (like a son)
thanks for any advice

nubbins

You will have to pay the 3% extra. There is a nice easy to understand chart here

If you had been living in one as your main residence you could claim back the extra if you sell within 18 months

AnotherJoe

cozzyman wrote: »

so is there any way for me to avoid it other than selling the other two property first? ie like signing the other property's over to someone else (like a son)
thanks for any advice

so you'd give someone a flat and a house to avoid paying perhaps 2% of the value of a house in tax???

If you mean to sign over and sign back again later, as has been pointed out to me when I suggested something similar a few days ago, that would be regarded as tax evasion.

kinger101

AnotherJoe wrote: »

so you'd give someone a flat and a house to avoid paying perhaps 2% of the value of a house in tax???

If you mean to sign over and sign back again later, as has been pointed out to me when I suggested something similar a few days ago, that would be regarded as tax evasion.

Actually, HMRC would be more than happy to collect the CGT that would be due when the property was transferred to the son.

kinger101

I think it's time we had a sticky called "Before you post that stamp duty question....."

AnotherJoe

kinger101 wrote: »

I think it's time we had a sticky called "Before you post that stamp duty question....."

... the answer is "yes you are liable to pay it"

AdrianC

"But I only own two places that I rent out already, surely I'm not who it's aimed at? It's so unfair!"

cozzyman

yes its is so unfair lol
im sorry to have asked a stupid question
but in my mind the spirt of the new law
was to restrict the purchase or at least
tax property's bought on the basis of being
used to rent to make profit which is a problem
in England and proceeds to be used to build budget
homes. I hoped when i was buying a property
for my main residence and not to rent out
as i have split from partner i wouldn't be penalized
for already owning property but guess not ;-(

thanks for your replys sorry to have been a pain

AdrianC

cozzyman wrote: »

but in my mind the spirt of the new law
was to restrict the purchase or at least
tax property's bought on the basis of being
used to rent to make profit which is a problem
in England

Like the other two homes you already own, and intend to keep, y'mean?

HappyMJ

cozzyman wrote: »

yes its is so unfair lol
im sorry to have asked a stupid question
but in my mind the spirt of the new law
was to restrict the purchase or at least
tax property's bought on the basis of being
used to rent to make profit which is a problem
in England and proceeds to be used to build budget
homes. I hoped when i was buying a property
for my main residence and not to rent out
as i have split from partner i wouldn't be penalized
for already owning property but guess not ;-(

thanks for your replys sorry to have been a pain

You could sell your existing flat and house...even to your son if you wish to keep the property in the family and you can then buy a new home for yourself and you will avoid paying the 3% extra SDLT.

If you co-own a property with a partner and you are soon divorcing you can sell your share of the property to your partner (even for just £1) and you will also not be liable to the additional SDLT. You've got to remove your name from the mortgage and the land registry title.

Tealblue

Given the amount of money which could be at stake, why on earth are you relying on free 'help' on this sort of forum, rather than paying for proper professional advice based on a full understanding of all your circumstances?