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Stamp duty - higher rate or not
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Tiggy_Wiggy
Posts: 204 Forumite
Hoping someone can help with my query.
We sold our main residence in 2004, and have rented since then. During that time, due to a breakdown of parents relationship, we purchased their property so that one parent would be able to remain in the house. So currently we own that property.
We are now wanting to buy our own main residence, whilst still owning the other property in which family currently resides.
I have read an article in the Telegraph that states that anyone owning a main residence,which was then sold prior to the announcement of the stamp duty changes in November 2015, would be exempt from the higher rate stamp duty.
http://www.telegraph.co.uk/investing/buy-to-let/the-stamp-duty-tax-loophole-that-could-save-buyers-thousands/
Would the purchase of our new home attract the higher rate of SDLT or are we exempt?
Thanks.
We sold our main residence in 2004, and have rented since then. During that time, due to a breakdown of parents relationship, we purchased their property so that one parent would be able to remain in the house. So currently we own that property.
We are now wanting to buy our own main residence, whilst still owning the other property in which family currently resides.
I have read an article in the Telegraph that states that anyone owning a main residence,which was then sold prior to the announcement of the stamp duty changes in November 2015, would be exempt from the higher rate stamp duty.
http://www.telegraph.co.uk/investing/buy-to-let/the-stamp-duty-tax-loophole-that-could-save-buyers-thousands/
Would the purchase of our new home attract the higher rate of SDLT or are we exempt?
Thanks.
0
Comments
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You own one property.
After the purchase transaction you will own two.
The surcharge is payable, in my opinion.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 -
Wot he said...kingstreet wrote: »You own one property.
After the purchase transaction you will own two.
The surcharge is payable, in my opinion.0 -
Thanks both for your responses.
I think I have answered my own question as I have found this document, which if I am reading it correctly, confirms what the Telegraph have said.
Hopefully it can help others who are in the same situation.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/508156/SDLT_summary_of_responses_final_14032016.pdf0 -
That document is simply a list of responses to the initial consultation that the Government took part in. The actual policy document that made it into the Finance Act is shown below - I concur with the previous posters that you are probably liable to the additional 3%. However, as this is very new territory, I would give HMRC a call.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/509184/GuidanceNote_Final.pdf0 -
Thanks Bluebirdman, yes you are right we need to give HMRC a call.0
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