On Stamp Duty and First time buyer

mc1982_2

Hi everyone,

I have a doubt about the Stamp Duty rates. My wife and me are planning to buy a property in UK, but one of us owns around 15% of a small property back in italy we inherited in the early 2000.
Is that considered as a first home (it has not been our main residence)?
Is it necessary to pay the additional 3% in this case?
We read a bit this forum and other websites around and this case it is not clear to me

THanks

Pixie5740

mc1982 wrote: »

Hi everyone,

I have a doubt about the Stamp Duty rates. My wife and me are planning to buy a property in UK, but one of us owns around 15% of a small property back in italy we inherited in the early 2000.
Is that considered as a first home (it has not been our main residence)?
Is it necessary to pay the additional 3% in this case?
We read a bit this forum and other websites around and this case it is not clear to me

THanks

According to the guidance you are not classed as FTB.

The higher rate of SDLT will only apply if the 15% share is worth more than £40k.

mije1983

The higher rate applies

Individuals and companies need to pay the higher rates when they buy an additional residential property in England or Northern Ireland. The higher rates apply even if your other residential properties are outside any of these countries.

https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property#rates-on-additional-properties

00ec25

Have you actually read the rules?
No you cannot claim to be first time buyers for SDLT purposes
https://www.gov.uk/government/publications/stamp-duty-land-tax-relief-for-first-time-buyers-guidance-note

see chapter 3
"In order to count as a first time buyer, a purchaser must not, either alone or with others, have previously acquired a major interest in a dwelling or an equivalent interest in land situated anywhere in the world.
This includes previous acquisitions by inheritance or gift, or by a financial institution on behalf of a person under an alternative finance scheme. "


whether you will have to pay the higher rate SDLT depends entirely on:
a) how much is her 15% worth in sterling £ "Condition C" >£40k?
and
b) how long ago did she inherit - within the last 3 years? if yes then you will not pay the higher rate as her share is <50%


https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09780


https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09795

00ec25

mije1983 wrote: »

The higher rate applies




https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property#rates-on-additional-properties

you cannot say that based on the info provided so far by the OP

mc1982_2

Hi Thanks for the reply.

I read the 40000 limits in some other website, but I cannot find this in the gov.co.uk website. Can you point me to the right direction?

Thanks

mc1982_2

00ec25 wrote: »

Have you actually read the rules?
No you cannot claim to be first time buyers for SDLT purposes

see chapter 3
"In order to count as a first time buyer, a purchaser must not, either alone or with others, have previously acquired a major interest in a dwelling or an equivalent interest in land situated anywhere in the world.
This includes previous acquisitions by inheritance or gift, or by a financial institution on behalf of a person under an alternative finance scheme. "


whether you will have to pay the higher rate SDLT depends entirely on:
a) how much is her 15% worth in sterling £ "Condition C" >£40k?
and
b) how long ago did she inherit - within the last 3 years? if yes then you will not pay the higher rate as her share is <50%

Hi,

thanks for the quick reply. The first links it what I was looking for.
Any idea on how the evaluation can be run for overseas properties?

Thanks MC