sdlt

strongboes

Hi,

I am waiting to exchange on a property, nearly there. I already own a property, it has been previously let, and will be sold. This property is worth under 40k, so as far as I can make out I will not be liable for the second home charge.

Anyone confirm this?

Many thanks.

ACG

I am under the impression that if you own ANY property in the UK, you are liable for the high err ate of stamp duty on the new property. I do not think there is a minimum valuation for either property.

minimike2

When will the other property be sold?

As I understand, if you own any other property at the time of completion of your new property then you are liable for the additional cost. This can however be refunded to you in certain circumstances if that property is disposed of within three years.

Your solicitor will be able to confirm for sure.

amnblog

Mike is onto it here.

Selling fine. Not selling, extra 3% refundable if you sell within 3 years.

If the current property used to be your home that complications the options further as it could bring you under the moving home rules.

scottishblondie

It is the price of the new property that matters, not the one you already own. See here:

From 1 April 2016 the rates for Stamp Duty Land Tax (SDLT) will be higher if you buy an additional residential property for £40,000 or more in England, Wales and Northern Ireland.

davidmcn

scottishblondie wrote: »

It is the price of the new property that matters, not the one you already own. See here:

Read that guidance note and you'll see that it only kicks in if you will end up with a "major interest" (i.e. over £40,000) in more than one property:

3.1 The higher rates will apply to the purchase of a major interest in a single dwelling by an individual, if at the end of the day of purchase Conditions A to D are met:

Condition A - the chargeable consideration is £40,000 or more;
...
Condition C - the purchaser owns an interest in another dwelling which has a market value of £40,000 or more

So no additional SDLT for the OP.

MoneySavingMission

what about Scotland? I thought under £40,000 exempt from 3% sdlt

strongboes

Okay,

So i have never lived in this rental, if I sell within timeframe I can get the sdlt back?

I thought it was only if you were living in property A and buying B, but you couldn't sell A before acquiring B.

You are saying it's fine if you own property A but not your main residence ie a rental, aquire B as your main residence and then sell A?

I will try to find the text that led me to believe if the property you owned was valued under 40k no additional was payable

MoneySavingMission

what about Scotland? Can someone please confirm?
I thought under £40,000 was exempt from sdlt.

scottishblondie

davidmcn wrote: »

Read that guidance note and you'll see that it only kicks in if you will end up with a "major interest" (i.e. over £40,000) in more than one property:
So no additional SDLT for the OP.

Ah I see. I had actually thought that was the case, but I guess I didn't read it properly when I went to confirm!

scottishblondie

MoneySavingMission wrote: »

what about Scotland? Can someone please confirm?
I thought under £40,000 was exempt from sdlt.

The rules are pretty much the same between SDLT and LBTT. The guidance can be found here so you can check.