Stamp duty when spouse owns farm house in Ireland

26xw10ie

I'm a first time buyer. My spouse now owns his parents' old farm house (parents still live in it), in Ireland.
We are looking to buy a home to live in in England.
Given that we will be using the new property as our main home, will we be exempt from the 3% stamp duty surcharge?
Many thanks!

00ec25

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

now look up the exchange rate....

does he (and therefore you) meet condition C ?

then read the rest of the rules so you actually understand it yourself, instead of waiting to be spoonfed
https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09730

26xw10ie

Thanks for the pointers 00ec25. My question relates to the main residence issue.
The guidelines state that if the dwelling being purchased is replacing the purchaser’s main residence, then the purchaser is exempt from the surcharge.
The house we buy in the UK will be our main residence but we will not be selling the property in Ireland.

Pixie5740

csinnott wrote: »

Thanks for the pointers 00ec25. My question relates to the main residence issue.
The guidelines state that if the dwelling being purchased is replacing the purchaser’s main residence, then the purchaser is exempt from the surcharge.
The house we buy in the UK will be our main residence but we will not be selling the property in Ireland.

Are you selling your current main residence to replace it with a new main residence? Since you state that you are a FTB I'm going to go out on a limb and say that you are not. Do you live in, or in the past 3 years have you lived in, a property your spouse owns as your main residence?

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09800

Doozergirl

csinnott wrote: »

Thanks for the pointers 00ec25. My question relates to the main residence issue.
The guidelines state that if the dwelling being purchased is replacing the purchaser’s main residence, then the purchaser is exempt from the surcharge.
The house we buy in the UK will be our main residence but we will not be selling the property in Ireland.

The advice given was correct.

The relief only applies if you are *replacing* your main residence. If you are not selling the existing property the 3% applies as you are buying an *additional* property to the existing portfolio, regardless of the fact that the new house will be your main home and the existing property is not.

If you own one house that exceeds £40k in value and increase the number of houses you own, the additional 3% applies.

PasturesNew

csinnott wrote: »

The guidelines state that if the dwelling being purchased is replacing the purchaser’s main residence, then the purchaser is exempt from the surcharge.

You are not replacing your main residence.

It's two properties you will have.

If you'd sold the farm (where you lived) and bought in England, that'd be replacement. Retaining the farm (whether you live there or not) is not replacing it. It's going from 1 property owned to 2 properties owned.

Replacement is where you get rid of one and move to another - regular "people moving house" stuff. If you keep something you are not replacing it.

AnotherJoe

Why does your husband own the house his parents live in ? . Can he give it to them? Did he buy it from them to help them out with cash ? If they bought say 30% from him, then he'd be under the £40k limit and extra SDLT wouldn't be payable.

00ec25

csinnott wrote: »

My question relates to the main residence issue..

which is condition D and is explained in great detail in the link i gave you

either your husband is, or is not, replacing his current main home, a property in which he must have a "major interest" as explained in conditions A & B, whilst condition C covers whether he already owns an additional property or not.
A, b , C & D taken together cover your scenario

replacing means: disposing of

disposing means: to sell, or to transfer/gift to another person, or to exchange his property for another persons, or to demolish his dwelling and walk away from the land it used to sit on