Stamp Duty exemption?

Jetsam

Hello to all,
My position is this --- I own (with a small mortgage) a house. I have been left a 50% share in my late parents house. With the permission and agreement of my fellow beneficiaries I am about to buy my parents house off the Estate (i.e. pay up the remaining 50% to the other beneficiaries).
I shall then sell my own house and move into my late parents house. In fact I will move into my folks old place before I have sold my own place. Therefore, for a short period of time I will own two houses which under the new stamp duty rules means I have to pay the new rates ... or does it ?


Under the new Stamp duty rules I read that because I have been left a share of this house in a Will then it is not technically considered a new or second home purchase. I'm just not confident that this is true. Can anyone enlighten me please ?

davidmcn

Jetsam wrote: »

Under the new Stamp duty rules I read that because I have been left a share of this house in a Will then it is not technically considered a new or second home purchase.

Where did you read this?

Caz3121

you will pay the higher amount but can apply for a refund of the additional if you sell your current main residence within 3 years

If you buy a new main residence but the sale for your previous main residence is delayed you’ll pay the higher rates as you own 2 properties.
But you can get a refund for the amount above the normal SDLT rates if you sell your previous main residence within 3 years.
https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

Jetsam

Thank you DavidMCN and Caz.
I read it at the following website:
http://www.thisismoney.co.uk/money/buytolet/article-3394231/Why-concerned-second-home-stamp-duty-reforms.html
Just scroll through the article until you get down to the Inherited bit --- maybe I misread it ?!
I'll have to log out now until tomorrow evening - but will check back in to see what you think. Thanks again.

[Deleted User]

Jetsam wrote: »

Thank you DavidMCN and Caz.
I read it at the following website:
http://www.thisismoney.co.uk/money/buytolet/article-3394231/Why-concerned-second-home-stamp-duty-reforms.html
Just scroll through the article until you get down to the Inherited bit --- maybe I misread it ?!
I'll have to log out now until tomorrow evening - but will check back in to see what you think. Thanks again.

What the article says is:


"If you inherit a small share of a property, 50 per cent or less, while in the middle of a purchase of a main residence, the Treasury has said the higher rates won't apply.
Therefore,when applying the higher rates, the government says a small share, 50 per cent or less, in a single property which has been inherited within the 36 months prior to the transaction, will not be considered as an additional property"

My understanding from your OP is that you already own (with a mortgage) a property, not that you are 'in the middle of a purchase of a main residence'. On that basis, I don't see how this could apply to your situation. I suggest you proceed on the basis of paying the extra Stamp Duty, then claiming it back from HMRC when your current property is sold. If you get it back you do, if you don't you don't - but if it's within 36 months you should anyway.

Pixie5740

Exactly, the article you linked to talks about someone inheriting in the midst of purchasing their main residence. That is not you. That article was also written before the rules were finalised.

This is HMRC's final guidance note.

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

Jetsam

Thanks Sleazy and Pixie --- I have re read the article and in the cold light of day (sans vino !) you are right --- well flip is all I can say --- thought I was onto something.