Stamp duty advice please!

Pixie5740

lovinituk wrote: »

Not quite. Assuming it was lived in as a main residence, for a period of time they could sell property 3 and not have to pay the additional.

This came up in a recent thread and was pointed out in the government guidance.





https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/570876/SDLT_Higher_rates_for_additional_properties.pdf

The OP didn't dispose of the property and then move into rented accommodation though. The OP has retained the former main residence and let it out whilst moving into rented accommodation.

lovinituk

Pixie5740 wrote: »

The OP didn't dispose of the property and then move into rented accommodation though. The OP has retained the former main residence and let it out whilst moving into rented accommodation.

Hmm, I see what you mean. I need to revisit the previous thread. I've removed my other post so as not to mislead.

Pixie5740

lovinituk wrote: »

Hmm, I see what you mean. I need to revisit the previous thread. I've removed my other post so as not to mislead.

I'm not entirely sure if the OP would be able to reclaim the additional SDLT if Property 3 was sold after Property 4 was bought. I can no longer be arsed reading the guidelines for OPs who can't be arsed reading the guidelines themselves.

lovinituk

Pixie5740 wrote: »

I'm not entirely sure if the OP would be able to reclaim the additional SDLT if Property 3 was sold after Property 4 was bought. I can no longer be arsed reading the guidelines for OPs who can't be arsed reading the guidelines themselves.

I thought I was starting to understand all the guidelines but there are so many possibilities and outcomes! I think future advice will be "ask your solicitor".

00ec25

Pixie5740 wrote: »

I'm not entirely sure if the OP would be able to reclaim the additional SDLT if Property 3 was sold after Property 4 was bought. I can no longer be arsed reading the guidelines for OPs who can't be arsed reading the guidelines themselves.

of all the properties owned, it is property 3 which was the most recent main residence (para 3.23) and a period in rental is ignored (para 3.24) and so only that one needs be considered. A refund is potentially possible in respect of property 3 only

for the question of main residence replacement then the relevant property must actually replaced, ie it is disposed of. (para 3.19)

The timescale for such replacement then depends on whether the old main home is:
- sold before the new one is purchased: (and the purchase is on or after 27th November 2018) paras 3.19A 3.20 & 3.21, in which case a replacement would have taken place and a refund could be claimed (subject to, after 27 Nov 18, the 3 year rule regarding the period up to the date of purchase)
or
- sold after the new one is purchased (para 3.25) but the property being sold must have been used as the main residence in the 3 year period leading up to its sale.

lovinituk

00ec25 wrote: »

- sold before the new one is purchased: (and the purchase is on or after 27th November 2018) paras 3.19A 3.20 & 3.21, in which case a replacement would have taken place and a refund could be claimed.

Have you got that the right way round? If the old one is sold first there wouldn't be any additional stamp duty to pay on the new one purchased later so no refund to claim.

Rockwood12

Sorry this site wont allow me to post links as a new user. Best I can do is to say it was on 'propertytribes'. The article was entitled 'Buy-to-Let 9 ways landlords can avoid the 3% extra stamp duty surcharge … Legally'

Rockwood12

Yes ultimately we will and as we have read a lot on the subject, but still not 100%. We presume we will incurr the higher stamp duty, which is fine - but just need to save a little more! Thanks for your comments

kinger101

Victor hit the nail on the head. As for whether selling property 3 would exempt them from the higher rate;

S128, Para 3 (6)

For the purposes of sub-paragraph (5) the purchased dwelling is a replacement for the purchaser’s only or main residence if—

(a) on the effective date of the transaction (“the transaction concerned”) the purchaser intends the purchased dwelling to be the purchaser’s only or main residence,
(b) in another land transaction (“the previous transaction”) whose effective date was during the period of three years ending with the effective date of the transaction concerned, the purchaser or the purchaser’s spouse or civil partner at the time disposed of a major interest in another dwelling (“the sold dwelling”),
(c) at any time during that period of three years the sold dwelling was the purchaser’s only or main residence, and
(d) at no time during the period beginning with the effective date of the previous transaction and ending with the effective date of the transaction concerned has the purchaser or the purchaser’s spouse or civil partner acquired a major interest in any other dwelling with the intention of it being the purchaser’s only or main residence.

BLOW_FLY

Hopefully your current combined properties are not on highly geared mortgages and you're in the higher tax bracket?

If they are, you might need a rethink / new strategy.....

BF