"Replacing an only or main residence" stamp duty exemption question

littleirishboy

the extra 3% will come to 22-24K and we are already stretching ourselves so that may be beyond us....

littleirishboy

thanks for the link

saajan_12

littleirishboy said:

Adrian,

Thanks for your help.

Maybe I wasn't clear that I lived in the Belfast house as my 'main' residence for about 5 years from 2008 - 2013 and indeed have kept paying the rates (council tax) there and am registered to vote there. I would still say it is my 'main' UK residence. We will be home in July and will use Belfast as residence for about 4 months at least  before buying a residence in London.

Who has been living in the Belfast property while you've been in China - tenants? 

There's no fixed list of tickboxes to make it your main residence, and its self assessment. That means you have to make a declaration and then HMRC can query it later, so you won't know whether you've 'got away with it' before putting in the SDLT form. If you're wrong, there could be fines on top of repaying the additional SDLT, hence you can't just 'try it'. 

littleirishboy said:

Also your logic doesn't make sense and is what is confusing me.  I have been told different things from different people hence I have had to search out further clarification. If we follow your logic then we would own 2 houses, both of which we would have paid the higher rate of stamp duty on. Surely everyone (or couple) deserve the right to own one property at the lower rate of Stamp Duty? This seems to me to be fair?

No, there's no right to one property in UK at the lower rate - else everyone living in every other country could have a BTL at the lower rate in UK. 

Besides you can get it, as long as you either live in the Belfast property (already bought at standard rate), or sell both and then buy your home anywhere. If you choose to structure it differently, then factor in the cost of that - ie additional 3% SDLT. 

AdrianC

littleirishboy said:

the extra 3% will come to 22-24K and we are already stretching ourselves so that may be beyond us....

So an £800k property...?

littleirishboy

somewhere between 700 to 800K yes. 

grumiofoundation

AdrianC said:

littleirishboy said:

the extra 3% will come to 22-24K and we are already stretching ourselves so that may be beyond us....

So an £800k property...?

Plus continuing to own 2 properties rented out. Edit: Only 1 (got confused with OP

Chandler85

You basically have 3 houses (China (main residence, whether owned or not), Belfast and Birmingham).

You are getting rid of/ moving from China residence and intent to move to London.  By selling your house in Belfast to help pay for it, you want to live here for a few months to make it/ claim it as your main residence despite not having lived there for 8 years.

Either stay there for an extended period, so it is actually your main residence or sell both your homes.  Or try claiming it was your main residence (despite not living there) to the tax man and see what he says.

You haven't even lived in the UK for 8 years, so I don't get your "entitled" to primary residence at lower tax at all!

littleirishboy

not my entitlement.. everyones? everyone should be able to own one house (only one) at the lower rate. I'd have thought that was sensible. MP Helen Grant was supposedly taking this up with the UK chancellor in 2016 but obviously hasn't got anywhere. I am getting professional advice as there is lots of things I think I can do. Main residence in Belfast but rent in London as that is where my work is. That may be allowed. Will see. But a 45K tax bill for two teachers is too much!

AdrianC

littleirishboy said:

not my entitlement.. everyones? everyone should be able to own one house (only one) at the lower rate. I'd have thought that was sensible.

Your opinion is not shared by any of the last four chancellors of the exchequer.
With all due respect, their opinion carries a tad more weight.

MP Helen Grant was supposedly taking this up with the UK chancellor in 2016 but obviously hasn't got anywhere.

She was asked to take it up by a constituent (you are not her constituent).
https://www.ft.com/content/bb51e06e-2bd1-11e6-bf8d-26294ad519fc
That constituent may or may not also have had a professional interest in getting the law changed...

Given that the chancellor she may or may not have "taken it up with" has had three successors, the then-PM has had two successors, and there's been two general elections in the near five years since then... I think it's a safe bet to say she didn't get very far, even if she did agree with her constituent and take it up.

But a 45K tax bill for two teachers is too much!

I think we can probably turn the "two teachers" sympathy plea down a bit, considering we're actually talking about just half that amount - and you appear to be dealing with a near-on million quid property portfolio...

littleirishboy

sorry I thought it was okay to have an opinion on the fairness of a tax law... maybe not on here.
Too much implies exactly that. I never said I thought the standard rate was too much. Anyways I await the reply of the experts to see.  After reading I think there will be ways for me to make the Belfast house my main residence. Not least as I have to wait until I am tax resident to buy or else I would be hit with another 2% on top of the 3% for 2nd property. So this will take 180 days at least. Thanks for help but.