Stamp duty holiday extension for second home buyers?

LaRaeyah

I’m currently buying a second house for my pregnant daughter to live in as she is out of work and can’t get a mortgage. The solicitors are trying to charge me stamp duty. Am I correct by saying that if the sale goes through before September I do not pay any stamp duty? One house is worth 120,000 and the other 157,000. Thanks in advance for your help. Basically, stamp duty holiday is for second time buyers too, correct? 

davidmcn

How much do they think is due? There's no "holiday" for the additional rate for second properties - is that what's causing the confusion?

SDLT_Geek

I would expect 3% SDLT to be due on the price of the property being bought, assuming it is England and that you are buying it and own another property.

LaRaeyah

They’re trying to charge me just over 5,000 pound, so the 3 percent and then the added two for the other home! 

So how much should I be paying? I’m so confused! 

LaRaeyah

Yes it’s England and own another property

LaRaeyah

It was to my understanding the stamp duty holiday is for everyone up to 250 but I’m assuming I’m wrong? 

Rankin21

The stamp duty holiday is for everyone up to 500k however if you have another property you have to pay 3% extra on the full price of the property. And there’s no holiday for this. 

So for example with our property purchase (we own an additional property that we rent out) 

so with out the stamp duty holiday we would have payed around 15k 

but with the holiday we only had to pay the 3% uplift so we saved about 5/6k 

So on the 120,000 property the stamp duty would be 3,600

On the 157,000 property the stamp duty would be 4,710 
(sorry it wasn’t clear what the price is of the property your currently buying for your daughter so I did the figuars for both)

 

[Deleted User]

LaRaeyah said:

They’re trying to charge me just over 5,000 pound, so the 3 percent and then the added two for the other home! 

So how much should I be paying? I’m so confused! 

What added two for the other home? The higher rate of SDLT for the purchase of an additional residential property is 3%.  How much is the (additional) house you are buying for your daughter £120k or £157k? 

To be clear this purchase of an additional property is in England and not Scotland or Wales where the tax is different, LBTT and LTT respectively? 

AdrianC

Are you buying the property in your name?
Or are you providing your daughter the money to buy it in her name?

martindow

LaRaeyah said:

They’re trying to charge me just over 5,000 pound, so the 3 percent and then the added two for the other home! 

So how much should I be paying? I’m so confused! 

Is this the solicitor quoting?  Possibly the 5000 is the total bill - stamp duty plus conveyancing costs

Windofchange

I'd agree with Martin above. As others have pointed out, the 3% is payable regardless. We had this last summer at the start of the stamp duty holiday for our purchase as we own another house. So, for our purchase we didn't have to pay the SDLT, but we did have to pay 3% of the total as we in effect own a second home. As above, the stamp duty owed by yourself will be a flat 3% of the total purchase price as it is a second home, then any costs for conveyancing etc ontop, so 5k probably sounds about right.