Stamp Duty

K_S

Deleted_User said:

You could sell your 90k property to yourself in a ltd company and have that complete 2nd to reverse the order of which one is higher rated.   Never done it but specialist lenders keep prattling on about it.   I might be mistaken with the details though

Deleted_User said:

davidmcn said:

Deleted_User said:

You could sell your 90k property to yourself in a ltd company and have that complete 2nd to reverse the order of which one is higher rated.   Never done it but specialist lenders keep prattling on about it.   I might be mistaken with the details though

Pretty sure that would be caught by the anti-avoidance legislation. 

Really?  Lile i said ive not done it before but lenders (especially Precise) have had it in their sales pitch since the 3% surcharge started.  The theory always made sense to me but in practice i wasnt sure how it would work. 

@Deleted_User I think you may be thinking of the quite common let 2 buy scenario where the old property is moved into a company to let out and the new property purchase (in personal names) is thus exempt from the 3% surchage or eligible for a refund of the 3% surcharge (if completion is after the onward purchase). Nothing dodgy about it at all.   

Of course, it wouldn't work if you intend at some point to move back into the old house or want to retain it as a second residence.

K_S

bluee678 said:

Ok, I'm back and unfortunately more confused. I'd appreciate a little more help, if you can. I was under the impression there was stamp duty to pay but documentation came through to make all payments and the stamp duty section was £0, hence my original question. However, after your replies I went back to the solicitor to clarify why it said £0 due. The solicitor is adamant there is no stamp duty due as the new property will be my main residence even though I own another property. I can't find much information supporting this but am obviously wanting to avoid fines for unpaid stamp duty if it should be paid. I'm not really sure where to go from here. Any advice? 

 @bluee678 That is plain wierd. Surely there is some piece of the puzzle that we're missing here if the solicitor is adamant that your SDLT bill on the 395k second home purchase is zero.

Do you own the 90k property in your own name? Have you owned any other properties in the last 3 years?

bluee678

Thanks again. No piece of the puzzle missing i'm afraid, if there is I'm missing it too. The solicitor was absolutely adamant and even put it in writing that it is not payable. They are definitely wrong though, as you all say. I have spoken to HMRCs helpline this afternoon and they too confirmed that I need to pay. Both properties are in my name and I have made clear I'm not intending to sell the first. I'll be back on the phone with the solicitor tomorrow! It blows my mind that I've been given this wrong advice from the solicitor! As always thanks for your help. 

[Deleted User]

bluee678 said:

Thanks again. No piece of the puzzle missing i'm afraid, if there is I'm missing it too. The solicitor was absolutely adamant and even put it in writing that it is not payable. They are definitely wrong though, as you all say. I have spoken to HMRCs helpline this afternoon and they too confirmed that I need to pay. Both properties are in my name and I have made clear I'm not intending to sell the first. I'll be back on the phone with the solicitor tomorrow! It blows my mind that I've been given this wrong advice from the solicitor! As always thanks for your help. 

Tell your solicitor to RTFM.

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09730

K_S

bluee678 said:

Thanks again. No piece of the puzzle missing i'm afraid, if there is I'm missing it too. The solicitor was absolutely adamant and even put it in writing that it is not payable. They are definitely wrong though, as you all say. I have spoken to HMRCs helpline this afternoon and they too confirmed that I need to pay. Both properties are in my name and I have made clear I'm not intending to sell the first. I'll be back on the phone with the solicitor tomorrow! It blows my mind that I've been given this wrong advice from the solicitor! As always thanks for your help. 

I must say I'm a bit shocked too. Please do update the thread when there's a further development.