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Stamp Duty on second homes
Mumbles82
Posts: 1 Newbie
Evening, I am trying to get my head around the stamp duty on second homes.
I used to live on my own in a flat in the south east. I lived there for about 10 years. I never had a mortgage in my name not was the mortgage on the house. I did not purchase the house. I had help from my parents and everything was in their name until the deeds were signed over to me after 7 years. The property is a leasehold.
In August 2017 I moved in with my partner and started to rent out my previous address starting in February 2018.
We are now looking to move out of the property we currently rent into a house we plan do buy.
Where do we stand on the second property tax? I have been told two different things about if I have to pay the second stamp duty since technically we are moving from a rented main residence into a new main residence.
Thanks.
I used to live on my own in a flat in the south east. I lived there for about 10 years. I never had a mortgage in my name not was the mortgage on the house. I did not purchase the house. I had help from my parents and everything was in their name until the deeds were signed over to me after 7 years. The property is a leasehold.
In August 2017 I moved in with my partner and started to rent out my previous address starting in February 2018.
We are now looking to move out of the property we currently rent into a house we plan do buy.
Where do we stand on the second property tax? I have been told two different things about if I have to pay the second stamp duty since technically we are moving from a rented main residence into a new main residence.
Thanks.
0
Comments
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You are not disposing of a "main residence", therefore you will be liable for the additional SDLT. (You are moving out of one, but you don't own it.)
(If, in the future, you sell this house and buy another, that time you WILL be exempt from the additional SDLT because you're selling your main residence and buying one to replace it.)0 -
Evening, I am trying to get my head around the stamp duty on second homes.
I used to live on my own in a flat in the south east. I lived there for about 10 years. I never had a mortgage in my name not was the mortgage on the house. I did not purchase the house. I had help from my parents and everything was in their name until the deeds were signed over to me after 7 years. The property is a leasehold.
In August 2017 I moved in with my partner and started to rent out my previous address starting in February 2018.
We are now looking to move out of the property we currently rent into a house we plan do buy.
Where do we stand on the second property tax? I have been told two different things about if I have to pay the second stamp duty since technically we are moving from a rented main residence into a new main residence.
Thanks.
Are you purchasing an additional residential property? Yes you are, therefore the higher rate of SDLT for the purchase of additional residential properties will apply.
You are not selling your main residence, because you rent it, therefore you are not replacing it in terms of SDLT.
It's all explained in the HMRC Manual.0 -
You own it.I used to live on my own in a flat in the south east. I lived there for about 10 years. I never had a mortgage in my name not was the mortgage on the house. I did not purchase the house. I had help from my parents and everything was in their name until the deeds were signed over to me after 7 years. The property is a leasehold.
Your main residence is not the flat you own.In August 2017 I moved in with my partner and started to rent out my previous address starting in February 2018.
You have to pay it.We are now looking to move out of the property we currently rent into a house we plan do buy.
Where do we stand on the second property tax?
You currently own one property. It is not your main residence.
You will be buying an additional property. You will not be selling your main residence.
+3%.
There is no "technically" about it. You are moving from a rented main residence into an additional property.I have been told two different things about if I have to pay the second stamp duty since technically we are moving from a rented main residence into a new main residence.
You might have been told two different things, but the person who told you "no, you don't have to pay it" was wrong.0
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