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Do I have to pay Stamp Duty?
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normal
Posts: 476 Forumite


I'm querying the advice we've received from our conveyancer, especially as they don't seem too sure themselves.
My wife and I each own a rental property but do not own the home in which we live (currently renting). We're now about to complete the purchase of the house (£305,000). This will be our primary residence and the conveyancer has suddenly said we have to pay £9,100 stamp duty. Is this right if we are buying our primary residence?
Many thanks
My wife and I each own a rental property but do not own the home in which we live (currently renting). We're now about to complete the purchase of the house (£305,000). This will be our primary residence and the conveyancer has suddenly said we have to pay £9,100 stamp duty. Is this right if we are buying our primary residence?
Many thanks
0
Comments
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Yes, you're increasing the number of residential properties you own, so the additional rate of SDLT applies. Doesn't matter what you're going to use it for.4
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as above "you" currently own 1 property each. Neither of those is a property you live in
after this purchase "you" will own a third property so an additional property subject to additional rate SDLT because you have NOT SOLD (ie replaced) a property you were previously living in so as to buy the new one.
Where you live at the moment is rented, so you can't sell it, therefore you cannot claim exemption from the higher rate for having replaced your current home as you have not, in that sense, done so.
conveyancer correct
if purchase is before March 2021 then the higher rate applicable during the "standard" rate "holiday" will be:
3% between £1 - £500,000 price paid
so @ £305,000 price paid means that would be £9,150 SDLT payable3 -
So it doesn't matter that we don't live in either property we currently own? This phrase from the MSE guide is slightly misleading then: "In England and Northern Ireland, there is now no stamp duty on any primary residential property worth up to £500,000."0
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Nope, it has no affect.If/when you come to sell this new property (and assuming you’re still living in it as a primary residence), you’ll only pay the standard stamp duty on the new house you buy as your primary residence, regardless of whether you still have both rental properties.1
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normal said:So it doesn't matter that we don't live in either property we currently own? This phrase from the MSE guide is slightly misleading then: "In England and Northern Ireland, there is now no stamp duty on any primary residential property worth up to £500,000."3
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normal said:So it doesn't matter that we don't live in either property we currently own? This phrase from the MSE guide is slightly misleading then: "In England and Northern Ireland, there is now no stamp duty on any primary residential property worth up to £500,000."3
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Well. That's all gone an blown a giant hole in our budget. We were advised that we'd have to pay approx £5,000 stamp duty prior to the recent changes. That advice was obviously wrong. We're not sure now if we can complete the purchase.0
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Who gave you this advice?No free lunch, and no free laptop0
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