Stamp duty... Help!!

00ec25

magn8p wrote: »

Echo other views stated here. Main residence == The one you [STRIKE]buy to[/STRIKE] live in.

the main residence is where you live, you do not have to own it for it to be your main residence

you could, for example, live with your parents...... (or reside in rented property yourself)

00ec25

ACG wrote: »

I have just have a look on the HMRC website and you are correct.

it would be wise to stop looking on the consultation website and in future look on the actual guide website - given the consultation was amended when published in March 2016, and the published guide was revised Nov 2016 to add some crucial clarifications...

https://www.gov.uk/government/publications/stamp-duty-land-tax-higher-rates-for-purchases-of-additional-residential-properties

i agree however that the original flowchart is useful for a very simple scenario and for those who struggle to read text

00ec25

accidental_landlord wrote: »

You'll presumably be purchasing via a solicitor who will know the exact answer?

the exact answer has been given several times, the higher rate SDLT will apply as the OP is not replacing their main residence, they are buying an additional property having "sold" a BTL property they used to own

read the rules... https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

PhilE

Charlieaston wrote: »

I was wondering if anyone is able to help?

I do not own a residential property, I live with my Mum. My first purchase was a buy to let, which I paid standard stamp duty on as it was my only property. My second property was also a buy to let. This was charged at the higher rate. I have now sold and am replacing my initial property with a bigger buy to let. I have been told that this will be charged at the higher rate stamp duty because it is not my only property or my main residence. BUT, my argument is that I have replaced the initial property which was classed as my main property in terms of stamp duty. If I pay higher rate this means that I will not have any properties which have been charged at the standard rate. Surely I should be allowed one "main residence" in terms of stamp duty, despite the fact that they are both on buy to let mortgages?

Your first property is standard rate, if that's where you live. Any other property is a higher rate, whatever you plan to do with it.

If your selling your main residence within 18 months after buying another main residence, you pay the additional SD but it gets refunded when you sell.

System

Hello,

I am buying my first home here in the UK. However, my mum last year bought a flat back home. She lives there, she paid for it and she is the main beneficiary although she put it under my sister's and my name as a gift, but I have never lived there so technically I am not moving my residence from that property to the UK one, but neither this can be considered my second property. My main residence at the moment is a flat where I am a tenant. Do higher rates still apply?

Bossypants

VDM wrote: »

Hello,

I am buying my first home here in the UK. However, my mum last year bought a flat back home. She lives there, she paid for it and she is the main beneficiary although she put it under my sister's and my name as a gift, but I have never lived there so technically I am not moving my residence from that property to the UK one, but neither this can be considered my second property. My main residence at the moment is a flat where I am a tenant. Do higher rates still apply?

Yes, the higher rate applies because you are going from owning one property to owning two. Not sure your Mum has actually done you a favour here, but too late to close the barn door now.

AnotherJoe

VDM wrote: »

Hello,

I am buying my first home here in the UK. However, my mum last year bought a flat back home. She lives there, she paid for it and she is the main beneficiary although she put it under my sister's and my name as a gift, but I have never lived there so technically I am not moving my residence from that property to the UK one, but neither this can be considered my second property. My main residence at the moment is a flat where I am a tenant. Do higher rates still apply?

Of course it can be "considered" your second property. On the grounds that, it is (or more accurately, will be)
You (part) own one in Italy,so obviously this would be a second one.

In what way is a property that you don't live in and don't gain any benefit from, a "gift" ? Presumably this is a tax dodge to get around an Italian law?

Give it back to her.

Adly812

Isn't it 3 years and could get refunded if you sell ?

Cakeguts

Smb3088 wrote: »

Isn't it 3 years and could get refunded if you sell ?

Yes if you sell your share in the one in Italy. You don't get it refunded from the one you buy in the UK if you sell it in 3 years.

AnotherJoe

Smb3088 wrote: »

Isn't it 3 years and could get refunded if you sell ?

Not in this case. It's 3 years if you sell your previous residence. But the Italian house isn't so that doesn't count.