Reducing additional stamp duty on second home by buying a cheaper property first

00ec25

mrginge wrote: »

I don’t know where you think I was discussing SDLT on a sale so frankly your response is meaningless.

hardly, it has forced you to explain your reasoning so others can at least see it instead of leaving your assertion hanging as a one liner

mrginge

00ec25 wrote: »

hardly, it has forced you to explain your reasoning so others can at least see it instead of leaving your assertion hanging as a one liner

Wow you really got me there mate. Last time I mess with the big boys.

Tom99

00ec25 wrote: »

hardly, it has forced you to explain your reasoning so others can at least see it instead of leaving your assertion hanging as a one liner

[FONT=Verdana, sans-serif]It was pretty obvious what the jibe was aimed at but, as you say, maybe some people need it explained to them.[/FONT]

Gwendo40

I know this is supposed to be a money saving forum but I sometimes find it quite remarkable with examples like this, that someone is potentially prepared to put themselves through so much hassle, stress and inconvenience just to possibly save a few grand on a £300k purchase.

I say possibly because there are no guarantees that this plan would work out anyway and could quite easily end up losing money AND still paying the additional 3% SDLT

Tom99

[FONT=Verdana, sans-serif]On those figures there is no possibility of any saving, even if the plan 'works', its bound to make a loss.[/FONT]
[FONT=Verdana, sans-serif]The saving of £2,000 in stamp duty will be gobbled up by the cost of buying then selling the £190,000 house. [/FONT]
[FONT=Verdana, sans-serif]Estate Agent say 1%+VAT = £2,280[/FONT]
[FONT=Verdana, sans-serif]Solicitor buy/sell probably a min of say £1,500[/FONT]
[FONT=Verdana, sans-serif]Total £3,780 and that's before you add all the other extra costs involved in the double move.[/FONT]
[FONT=Verdana, sans-serif]However, if the OP was planning a move to say a £2m house the stamp duty saving in the two move option would be £53,000 rather then £2,000.[/FONT]

buglawton

The SLDT rules mean it makes more sense to own one oversized property rather than keep the previous smaller one. I'd sell the flat, buy an oversized property with a truly massive kitchen and multiple bathrooms so the option to let rooms out. The bigger capital gains tax on the oversized main residence will be zero the next time you sell.