Freddy

Freddyboy

Hello, I.m trying to get clarification about Higher Rate Stamp Duty and whether it would apply to my circumstances. Have read most other cases and not exactly sure so here goes.
I have owned 2 properties for many years.
Property A owned jointly with my wife which we sold last month.
Property B which I rented out 3 years ago when my mother died (she lived there). I have always regarded property B as a SECOND home but we have moved into this now we have sold property A. I own this just in my name.

We are about to buy our new main residence (property C) and move out of property B.

Questions:-

1) Did property B automatically become my new main residence last month? or do I have to change/nominate it as such by telling the Inland Revenue?

2) Assuming the answer to question 1 = NO, then does it mean that as I am buying my new main residence C, this will not attract the higher rate SDLT?

3) Assuming property B was and still is my SECOND home this will continue to attract Capital Gains tax liability and 100% council tax in Doncaster when we move out into property C...

Hope this explains the scenario accurately enough to be able to gove a simple answer.
Many thanks

freddy

Pixie5740

Will property B Be sold before or at the same time as buying property C?

Edit: Have read HMRC's guidelines?

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/509184/GuidanceNote_Final.pdf

Freddyboy

Not initially no. I will probably rent it back out again.
Yes I have read the guidelines. There is a good example of my scenario but Im not sure about whether Property B, the one I moved into becoming automatically my main residence.
If that is the case then I think I would be liable for HRSDLT , that is why I asked the question about property B as well. Thanks

AnotherJoe

Hello, I.m trying to get clarification about Higher Rate Stamp Duty and whether it would apply to my circumstances.
=====

Why is your subject "Freddy" and not "Higher Rate Stamp Duty" then?

FWIW I'd say you arent due it because you sold property A your main residence and are buying property C to replace it. B is just a temporary stop on the way. You haven't lived long enough in B for it to be a main residence and self evidently didn't intend it to be one. There is case law backing this up.

So I would focus on replacing A with C when your solicitor talks about you needing to pay the extra which they may well do.

Freddyboy

Not sure how to insert a title onto these threads, that’s why it’s blank. Ive now put one in the field above my reply, not sure if this means it will become my title though.
As a first time user on this forum I must admit it does seem a little complicated initially.

Clutterfree

I think you need to go back to your first/original post and then edit - it may be under the advanced tab and then change the subject line there.

AnotherJoe

Try this.

Click on "edit post" for the first post of the thread, the one that started it.
Click on "go advanced"
Then you can see and change the title field.

I think that will work. I cant try it as its your thread though.

Freddyboy

Thanks, Ive just managed to put a title in. Sorry I couldnt make it a bit more interesting one though.

Freddyboy

Thanks AnotherJoe; That’s what I thought as well. Only reason I asked is that I moved into my other property and wasn,t sure what the rules were for how long it would be for that to become my main residence and whether that would happen automatically or not. Surely I would have to notify someone if I wanted that to happen and swap my main residence across to it?

silvercar

When you have a change of ownership, you have 2 years in which to notify hmrc of what is to be classed as your main residence. If you don;t make an election then it is judged on fact. You can't choose a property that is let as your main residence. However this is only for capital gains tax purposes.

For SDLT if you owned 2 properties, sold one and bought another then you should be ok.