Stamp duty worries

succuba5

Lover_of_Lycra wrote: »

OP you really need to answer scottishblondie's question because it will make all the difference in terms of your SDLT liability.

Thanks I was trying to go through them last night but it was late

succuba5

scottishblondie wrote: »

When you say "new" do you mean you're selling a current residence to buy a new one? Or is this your first purchase?

We had a house, bought in 2009 so before the higher rate stamp duty came in and sold it 6 months ago. We've been living with my in laws while we looked for a new house (we moved to their area for work).

[Deleted User]

succuba5 wrote: »

We had a house, bought in 2009 so before the higher rate stamp duty came in and sold it 6 months ago. We've been living with my in laws while we looked for a new house (we moved to their area for work).

The higher rate of SDLT won't apply then because you're replacing your main residence with another main residence. The house that your parents live in is irrelevant to your SDLT liability.

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09805

AdrianC

succuba5 wrote: »

We had a house, bought in 2009 so before the higher rate stamp duty came in and sold it 6 months ago. We've been living with my in laws while we looked for a new house (we moved to their area for work).

[strike]So no get-out under the previous primary residence rule - it's been too long since that sale. You are now buying an additional property.

You currently own 1 property. At the end of the transaction, you will own 2.[/strike]
I am wrong.

GrumpyDil

And there's your get out of jail card.

Info would have helped earlier in the thread. But if you are replacing an only or main residence the 3% stamp duty does not apply, provided you complete the onward purchase within three years of the sale.

Check that out by reading the HMRC guidance but that is certainly my understanding.

[Deleted User]

AdrianC wrote: »

So no get-out under the previous primary residence rule - it's been too long since that sale. You are now buying an additional property.

You currently own 1 property. At the end of the transaction, you will own 2.

The previous main residence was only sold 6 month ago.

AdrianC

Lover_of_Lycra wrote: »

The previous main residence was only sold 6 month ago.

D'oh. Must not reply before end of first cup of tea.

My brain latched on the 2009 date as the sale date.

[Deleted User]

AdrianC wrote: »

D'oh. Must not reply before end of first cup of tea.

My brain latched on the 2009 date as the sale date.

:rotfl::rotfl::rotfl:

Enjoy your first brew.

xylophone

We had a house, bought in 2009 so before the higher rate stamp duty came in and sold it 6 months ago.

Then see main residence replacement in post 16 above.

I don't know what that terminology means but higher rate stamp duty didn't exist when they did this

Re "reservation of benefit" - see

https://www.taxadvisermagazine.com/article/gifting-family-home

With regard to link above, (see gifting share) neither you nor your siblings have ever lived in the property and there is no element of sharing the property - RoB may therefore be a consideration.

It's joint tenants

Then when one of the joint tenants dies, his share falls automatically to the survivors - thus, if your mother were to die before your father, you and your siblings would own the home in which he lives.

If one of the siblings dies, his share automatically falls to the survivors.

See https://www.gov.uk/joint-property-ownership

Is this the intention?

succuba5

xylophone wrote: »

Then see main residence replacement in post 16 above.



Re "reservation of benefit" - see

https://www.taxadvisermagazine.com/article/gifting-family-home

With regard to link above, (see gifting share) neither you nor your siblings have ever lived in the property and there is no element of sharing the property - RoB may therefore be a consideration.



Then when one of the joint tenants dies, his share falls automatically to the survivors - thus, if your mother were to die before your father, you and your siblings would own the home in which he lives.

If one of the siblings dies, his share automatically falls to the survivors.

See https://www.gov.uk/joint-property-ownership

Is this the intention?

Thank you, I'll look into the reservation of benefit.

Yes that is the intention. I think they just wanted to make sure everything was fairly split between us