Linked stamp duty or is it?

karensturt

Hi, this is my situation, please help 

Buying a first floor flat with 900 yrs lease and freehold (no mortgage), with that comes the freehold for a downstairs flat.  

I have also decided to buy the leasehold (also a long lease) of the downstairs flat as a BTL with mortgage. 

One of the flats belongs to a wife and the other her husband, they have been separated for 15 years but never divorced.

Is this still classed as a linked purchase and is stamp duty worked out at higher rate on both.  Top floor will be my residential home with my children.

I was also wondering if i purchased them in separate transaction on different dates this would make a difference to the Stamp duty.

Please help.  My solicitor says they are not experts and cannot work out the stamp duty for me, are you able to help.

My flat is costing £685,000 with both freeholds

and downstairs lease is  £490,000

If they are both the higher rate would I be eligible to stamp duty tax relief?

please help, as I don't want to overpay or underpay, but My accountant doesn't know or solicitor and I don't know where to turn.

Kind regards

Karen 

sheramber

Stamp Taxes Helpline

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SDLT_Geek

karensturt said:

Hi, this is my situation, please help 

Buying a first floor flat with 900 yrs lease and freehold (no mortgage), with that comes the freehold for a downstairs flat.  

I have also decided to buy the leasehold (also a long lease) of the downstairs flat as a BTL with mortgage. 

One of the flats belongs to a wife and the other her husband, they have been separated for 15 years but never divorced.

Is this still classed as a linked purchase and is stamp duty worked out at higher rate on both.  Top floor will be my residential home with my children.

I was also wondering if i purchased them in separate transaction on different dates this would make a difference to the Stamp duty.

Please help.  My solicitor says they are not experts and cannot work out the stamp duty for me, are you able to help.

My flat is costing £685,000 with both freeholds

and downstairs lease is  £490,000

If they are both the higher rate would I be eligible to stamp duty tax relief?

please help, as I don't want to overpay or underpay, but My accountant doesn't know or solicitor and I don't know where to turn.

Kind regards

Karen 

If these are linked transactions then the impact can be mitigated by claiming multiple dwellings relief.

The complications are likely to arise more concerning the 3% surcharge to SDLT.  It will be relevant whether you have sold or are selling your previous home.

You are likely to need specialist SDLT advice.