Stamp Duty – First time buyer definition

Tom99

[FONT=Verdana, sans-serif]In the draft legislation accompanying today's announcement, 1st time buyers are defined as:-

[/FONT] “[FONT=Verdana, sans-serif]has not previously been a purchaser in relation to a land transaction the main subject-matter of which was a major interest in a dwelling”

[/FONT] [FONT=Verdana, sans-serif]There does not seem to be a definition of 'purchaser'. If for example a previous ownership had been inherited that would not be a purchase so that person could still count as a 1st time buyer.

[/FONT] [FONT=Verdana, sans-serif]Is that correct?[/FONT]

davidmcn

Do you have a link to the draft Bill? I haven't found it yet.

Tom99

davidmcn wrote: »

Do you have a link to the draft Bill? I haven't found it yet.

https://www.gov.uk/government/publications/stamp-duty-land-tax-relief-for-first-time-buyers

davidmcn

Tom99 wrote: »

[FONT=Verdana, sans-serif]In the draft legislation accompanying today's announcement, 1st time buyers are defined as:-

[/FONT] “[FONT=Verdana, sans-serif]has not previously been a purchaser in relation to a land transaction the main subject-matter of which was a major interest in a dwelling”

[/FONT] [FONT=Verdana, sans-serif]There does not seem to be a definition of 'purchaser'. If for example a previous ownership had been inherited that would not be a purchase so that person could still count as a 1st time buyer.

[/FONT] [FONT=Verdana, sans-serif]Is that correct?[/FONT]

Section 43(4) has the definition - it doesn't include inheritance:
http://www.legislation.gov.uk/ukpga/2003/14/section/43

Nadeshkarine

The updated calculator on hmrc website includes inheriting in the definition of previously owning :

Have you ever owned or part owned another property?
We only need to know about residential property, or property that has both residential and non-residential use. This includes freehold property, or leasehold property of at least 21 years. Select yes if you either:

bought a property
inherited a property
are a beneficiary of a trust that owns a property

Can't post this as a proper link but
tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro

Purplepenguin88

on the gov't stamp duty calculator it now asks for a date of transaction, and if it's today or after it asks:

Have you ever owned or part owned another property?
We only need to know about residential property, or property that has both residential and non-residential use. This includes freehold property, or leasehold property of at least 21 years. Select yes if you either:

bought a property
inherited a property
are a beneficiary of a trust that owns a property

So i assume that inherited properties are counted the same as purchased properties

MobileSaver

Purplepenguin88 wrote: »

So i assume that inherited properties are counted the same as purchased properties

Which would be fair enough really if correct. It would be hard for someone who had inherited a property worth tens of thousands if not hundreds of thousands of pounds to complain "life was unfair" that they then had to pay a few thousand in stamp duty!

davidmcn

Purplepenguin88 wrote: »

So i assume that inherited properties are counted the same as purchased properties

That doesn't seem to be what the draft legislation says though. Hmm.

kingstreet

davidmcn wrote: »

That doesn't seem to be what the draft legislation says though. Hmm.

Sorted by the time it gets through the various papers/committee/reading stages?

Mickcol53

And what about house builders who offered to pay stamp duty. Will they now give a discount equivalent to that amount?

Puck101

OK, so another question. On the gov calc it asks if the purchase will result in you owning 2 or more properties. It then asks if the new property will be replacing your main residence and if so it doesnt calculate the additional stamp duty.


Now my situation is I currently rent but I did inherit part of my grandparents house. So I was under the impression that I no longer qualify as a FTB but virtue of owning part of anothe property. However, when I buy my new property it will be replacing my main place of residence so I need to pay the additional stamp duty?


By answering the questions truthfully on the gov calculator it suggests I dont have to but I'm not sure thats right.