Stamp duty confusion

Poppyka

hi 
hope you’re keeping well. 

I apologise if this query is repetitive and has been asked before. 

I wonder if you could help me? My partner and I are in the process of buying a new house (we’re hoping to be toward the later stages of this as our solicitors have received responses to their enquiries and all searches are back etc). 

We aim to sell our current flat but won’t be until after we purchase our new place. My partner has additional property that he rents out. 

Our new house will be our main residence does we pay the normal rate of stamp duty and get this refunded if we sell our flat within 3 years?
Or do we pay the higher rate because of the rented property?
thanks in advance we’ve read up on things but it’s not very clear (or I’m easily confused!)

user1977

Assuming we're talking about England or Northern Ireland and that the flat you're selling is your main residence...

You pay the higher rate (because at the time you complete your purchase, you're increasing the number of properties you own). If you sell the old one within 3 years you can then claim a refund (to take it back down to "normal" rates).

The rented property is irrelevant.

AdrianC

Poppyka said:

My partner and I are in the process of buying a new house (we’re hoping to be toward the later stages of this as our solicitors have received responses to their enquiries and all searches are back etc). 

We aim to sell our current flat but won’t be until after we purchase our new place. My partner has additional property that he rents out. 

Our new house will be our main residence does we pay the normal rate of stamp duty and get this refunded if we sell our flat within 3 years?
Or do we pay the higher rate because of the rented property?

You (jointly) own A and live in it currently.
Your partner owns B and does not live in it.
You (jointly) are buying C, to live in. You will pay +3%. You (jointly) are going from two to three properties.

If you sell A within 3yrs of buying C, you can reclaim the +3%, because you have replaced your previous main residence.

HopeAndDriftWood

@user1977 Forgive me for asking, but why does the property he rents out not matter?
I thought any additional owned properties did - so they'd have to pay the additional stamp duty as they own three, and even if they sell one within 3 years of buying, they'd still own an additional property - but I'm no expert, just keen to learn! 

[Deleted User]

the 3% surcharge is applied when you own more than 1 property but there is an exemption if you are replacing your main residence.  So someone can have a 200 property portfolio and still just pay normal rates if they sell the one they live in and buy a new one to live in.  

Poppyka

Thank you all so much that’s really helpful! We’re hoping we can sell our flat within 3 years so can claim the stamp duty back. 

SDLT_Geek

Poppyka said:

hi 
hope you’re keeping well. 

I apologise if this query is repetitive and has been asked before. 

I wonder if you could help me? My partner and I are in the process of buying a new house (we’re hoping to be toward the later stages of this as our solicitors have received responses to their enquiries and all searches are back etc). 

We aim to sell our current flat but won’t be until after we purchase our new place. My partner has additional property that he rents out. 

Our new house will be our main residence does we pay the normal rate of stamp duty and get this refunded if we sell our flat within 3 years?
Or do we pay the higher rate because of the rented property?
thanks in advance we’ve read up on things but it’s not very clear (or I’m easily confused!)

OP, is it the case that the flat where you both live is owned by both of you?  The position might be different if only OP owns it.

grumiofoundation

Poppyka said:

Thank you all so much that’s really helpful! We’re hoping we can sell our flat within 3 years so can claim the stamp duty back. 

Is the current flat jointly owned? (Edit: cross posted with above)

Poppyka

@SDLT_Geek and @grumiofoundation my partner owes it with his parents. Would that make a difference to us being able to reclaim if we sell 

SDLT_Geek

Poppyka said:

@SDLT_Geek and @grumiofoundation my partner owes it with his parents. Would that make a difference to us being able to reclaim if we sell 

So OP, you do not have a share in the flat?  You have no property interests at all?

Poppyka

@SDLT_Geek nope  none at all the house we’re buying together will be my first house purchase