Higher rate stamp duty

george278

My wife and I are planning to move house and are under a tight time frame due to our daughter’s schooling. This may mean we will have to buy the new house before selling our existing one. I assume then that we will incur higher rate stamp duty as this will be a second home.

Can we legally avoid this higher rate duty by transferring our present property to one of our sole names and then purchase the new home in the others sole name?

Thanks, in advance.

Flugelhorn

I think that there is a time frame whereby if you sell the first house then you can get the extra stamp duty refunded. Not sure if it is 18 months or 3 years?

Just checked here https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property it is 3 years

Slithery

If you sell your current property within 3 years of purchasing the new one you can reclaim the extra SDLT.

https://www.gov.uk/government/publications/stamp-duty-land-tax-apply-for-a-repayment-of-the-higher-rates-for-additional-properties

davidmcn

george278 wrote: »

My wife and I are planning to move house and are under a tight time frame due to our daughter’s schooling. This may mean we will have to buy the new house before selling our existing one. I assume then that we will incur higher rate stamp duty as this will be a second home.

Yes, but you can claim a refund when you sell your first house. Would that solve your problem?

Can we legally avoid this higher rate duty by transferring our present property to one of our sole names and then purchase the new home in the others sole name?

No. Married couples are treated as a single entity for the purposes of the additional dwelling supplement, so e.g. your "first" house would be deemed to be your second if your wife already owned another property.

HouseBuyer77

See https://www.gov.uk/stamp-duty-land-tax/residential-property-rates

Basically if replacing main residence if you buy before your sell you will pay the higher rate but can claim a refund when you sell the old property (if done within 36 months).

george278

Many thanks for your quick and positive replies.

Looks like we are sorted