What constitutes owning a second home?

veryintrigued

So we'll be moving to a new house without, quite, selling the old.

Meaning we'll fall foul of the second home SLDT.

At the point we sell the original house (sale currently going through - fingers crossed) we'd then look to claw back this, not insignificant, payment back.

However a few years ago, on the death of a parent, one of us is also named as a part proprietor on the Land Registry of a third home (25% in will).

This home is one where the deceased parents spouse still lives and hence we have absolutely no involvement in living there, bills etc etc.

So the question is after we sell our original home will we still considered to own a second (i.e. the one where one of us has a part interest in).

TIA

SDLT_Geek

veryintrigued said:

So we'll be moving to a new house without, quite, selling the old.

Meaning we'll fall foul of the second home SLDT.

At the point we sell the original house (sale currently going through - fingers crossed) we'd then look to claw back this, not insignificant, payment back.

However a few years ago, on the death of a parent, one of us is also named as a part proprietor on the deeds of a third home (25% in will).

This home is one where the deceased parents spouse still lives and hence we have absolutely no involvement in living there, bills etc etc.

So the question is after we sell our original home will we still considered to one a second (i.e. the one where one of us has a part interest in).

TIA

It does not matter that you own other properties if you meet the conditions for the “replacement exception” by later selling a property you had lived in as your only or main residence within the three years before you bought your new home.

There is guidance at SDLTM09800.

Slithery

Yes, you will. However, it is irrelevant from an SDLT point of view. You will be replacing your main residence within the required 3 years so you can still get the refund.

The extra SDLT is for acquiring additional properties, not a second home tax. You currently own your main residence and and one other property and will be in the same situation when all of the transactions are complete so no additional property has been purchased.

veryintrigued

Brilliant.

Thanks you two

canaldumidi

You will have a 2nd property, yes.

But you will not be liable for the additional 3% SDLT as you will be replacing your main residence (selling within 3 years) with a new main resdence.