Stamp duty guidance needed

Legacy_user

Hello,

I am about to buy a flat in the UK. This will be my first purchase and my first main home as an owner (I currently live in a rented flat in London).

However, back in Italy I do own a property. My mother bought it last year, she put it under mine and my sister's name but she paid for it, she lives in it as beneficiary and I have never lived there so that has never been my main residence.

So technically I am not replacing my main residence with the new property, but I am not buying the UK property as a second property either, it will by my first. Am I still at the same level as BTL buyers in terms of stamp duty rates? I hope not, because it doesn't look quite the same to me...

Any guidance will be appreciated.

Thanks in advance!

poppy10_2

If you own a property worth over £40,000 anywhere in the world, you are liable for the additional stamp duty rate. Doesn't matter that it isn't your main residence or that your mother paid for it. It's in your name, it's your home.

System

Thank you for your feedback, but my question is if the higher or standard rates would apply. Would you be able to comment on that?

Thanks
V.

Cakeguts

If the share of the property you own in Italy is worth more than £40k you will pay the higher rate of stamp duty. This is nothing to do with buy to let. It is to do with people owning more than one property which you will do because you have a share of one in Italy.



The fact that this is the first property you will own in the UK and that your mother paid for the one in Italy doesn't make any difference. You pay the higher rate of stamp duty if you own another house anywhere in the world that is worth more than £40k. So if your share of the Italy house is worth more than £40k you will pay the higher rate of stamp duty.



Your question was answered in the 2nd post.

aries_163

Poppy10 did comment on that - you are liable for the additional stamp duty rate, the higher rate.

System

What about if I gave away my share of the property before the exchange date? In that case would I qualify as first time buyer?

Thanks!
V.

Cakeguts

VDM wrote: »

What about if I gave away my share of the property before the exchange date? In that case would I qualify as first time buyer?

Thanks!
V.

You would have to sell it because you would need proof that you no longer own it and are not giving it away to have it given back after you have bought the property in the UK. The tax authorities will have thought of all the ways that people might try to think up to get round the tax.

AnotherJoe

VDM wrote: »

What about if I gave away my share of the property before the exchange date? In that case would I qualify as first time buyer?

Thanks!
V.

You've jumped from additional property SDLT to whether or not you are a first time buyer.
The two are different.

Pixie5740

VDM wrote: »

What about if I gave away my share of the property before the exchange date? In that case would I qualify as first time buyer?

Thanks!
V.

You're not a First Time Buyer in terms of SDLT and you never will be again regardless of what you do with the overseas property. You might avoid the higher rate of SDLT if you dispose of your interest in the overseas property before completion. How much is your share in the Italian property worth?

To be honest this information is already readily available on the internet and is linked to in just about every thread on this board about SDLT of which there are many.

System

Ok thank you all. I am not trying to get around the tax to be fair, just trying to understand if the system has nuances based on specific circumstances, that's it. And I understand there is a lot of material available on this but sometimes the wording is misleading so I was just after confirmation. Now I have all I need. Thank you.

Cakeguts

It should be first time owner not first time buyer. If you have ever owned a share in or another property you not classed as a first time buyer because you have owned a property even if you didn't pay for it.