Stamp Duty - will I pay any?

helpmebuyahouse

We sold our only home in Feb 2018. Been renting since then. We hope to buy again within the next 6 months. Purchase price approx £600k. I've looked on the gov.uk website and can't understand their explanation on who pays. Obv we are not "first time buyers" but I think the web site indicates that we would not have to pay the higher rate ? [i.e.: the 5% for amounts over £250k]. Thank you for any advice given. My mortgage broker is not sure

helpmebuyahouse

Thank you, but can I check, do the usual tiers apply to me? i.e.: 3% up to £250k and 5% over that up to my purchase price of £600k? My broker indicated that I may not pay any stamp duty , which is why I am confused!

agrinnall

I think 00ec25 has misunderstood your question and has provided a response to say that you won't pay the higher rates for an additional property - it's right, but isn't what you asked.


I don't know what your broker bases his answer on, it is clear that you are not a first time buyer, but as you are buying a home costing over £500,000 it wouldn't matter if you were anyway. You will pay £20,000 in SDLT, made up of £2,500 at 2% and £17,500 at 5%.


Everything you need to know can be found here, including a link to the SDLT calculator.


https://www.gov.uk/stamp-duty-land-tax/residential-property-rates

AnotherJoe

00ec25 wrote: »

you will not pay the higher rate.
You are not buying an additional property whilst continuing to own an existing property.

why the confusion?

No idea 00ec25, I found the OPs Q easy to follow, have you stopped taking your meds?

helpmebuyahouse

Thank you @agrinnal, for the link and the calculator, I believe he broker was referring to on the gov.uk website is the part that says "If you’re replacing your main residence
You won’t pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold" .......

AnotherJoe

00ec25 wrote: »

may be not what was asked 2nd time

but as far as i could see the only question (?) asked first time was

[i.e.: the 5% for amounts over £250k]

...And that is nothing to do with the overall 3% for a second property

AnotherJoe

helpmebuyahouse wrote: »

Thank you @agrinnal, for the link and the calculator, I believe he broker was referring to on the gov.uk website is the part that says "If you’re replacing your main residence you won’t pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold" .......

Indeed you wont pay the extra 3% SDLT. Thats an extra 3% not 5% and is not relevant to you.

That 3% is over and above what you'd pay as standard on a house, you will pay the "standard" banding.

Up to £125,000 0%
£125,001 - £250,000 2%
£250,001 - £925,000 5%
That is what you will pay.

Unless your broker is a complete buffoon i think you've simply been swamped with info and picked out the bits you liked the sound of and done your own translation, such as "no extra 3%" = "no extra 5%" and for some reason "no extra 3%" = "no SDLT at all to pay".

00ec25

AnotherJoe wrote: »

...And that is nothing to do with the overall 3% for a second property

sadly one cannot legislate for those unable to express themselves cogently