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Stamp Duty Guidance Please !
hotshotric
Posts: 1 Newbie
Hi,
I live in Scotland and recently moved from a 70K property (which I have chosen to retain as a rental property) into a circa 200K property.
I have had to pay the stamp duty or Land and Buildings Transaction Tax (LBTT) as called in Scotland on the new home + the additional LBTT for purchasing a second property. In all this has cost me around 7K, 5K of which is directly due to the second home tax.
I have no problem paying the additional stamp duty for owning a second home but as the 200K property will be my main residence and the 60K property the rental I feel I should pay the additional tax on the rental (which would be around 1K) not the home I will be living in.
Can anyone provide guidance on this matter, can I do that?
Thanks
I live in Scotland and recently moved from a 70K property (which I have chosen to retain as a rental property) into a circa 200K property.
I have had to pay the stamp duty or Land and Buildings Transaction Tax (LBTT) as called in Scotland on the new home + the additional LBTT for purchasing a second property. In all this has cost me around 7K, 5K of which is directly due to the second home tax.
I have no problem paying the additional stamp duty for owning a second home but as the 200K property will be my main residence and the 60K property the rental I feel I should pay the additional tax on the rental (which would be around 1K) not the home I will be living in.
Can anyone provide guidance on this matter, can I do that?
Thanks
0
Comments
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I highly doubt it.
It's not a BTL tax. It has nothing to do with rentals. It has nothing to do with being a landlord.
It is to do with having two properties.0 -
It doesn't really matter what you feel. It's what the law says that's important and the additional 3% LLBT is levied when you purchase an additional dwelling without disposing of your current main residence. In simple terms at the start of the transaction you own one property and at the end of the transaction you'll own two. LLBT is paid when you purchase a property therefore the LLBT and surcharge is payable on the consideration of the new transaction i.e. the £200k property.
https://www.revenue.scot/land-buildings-transaction-tax/guidance/lbtt-additional-dwelling-supplement-useful-documents0 -
hotshotric wrote: »
Can anyone provide guidance on this matter, can I do that?
No.You can't.0 -
Yeah: You are liable for the tax. Surely it is the duty of all patriotic citizens to pay tax promptly & with good grace?hotshotric wrote: ».......Can anyone provide guidance on this matter..........0 -
If you've already moved then haven't you already submitted your LBTT return and paid the tax? Anyway, no, you can't choose to reallocate the liability to another property, the tax is the amount due on your current transaction.0
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