replacing main residence SDLT

J41721

Hi
I co-owned a council house with my mum and the council, we have around 23% ownership.

I sold my home/apartment in April 2021 and moved to a rental to relocate to a new area.  I am trying to buy a new home but getting nowhere in this crazy market.

Is there a time limit I need to buy my new home?  Does the 36 months rule apply here?

Thank you!
J

SDLT_Geek

J41721 said:

Hi
I co-owned a council house with my mum and the council, we have around 23% ownership.

I sold my home/apartment in April 2021 and moved to a rental to relocate to a new area.  I am trying to buy a new home but getting nowhere in this crazy market.

Is there a time limit I need to buy my new home?  Does the 36 months rule apply here?

Thank you!
J

Assuming you are buying in England, then you have three years to complete the purchase of your new home if you are to escape the 3% surcharge to SDLT.  The 3 years run from the earlier of:

• you moving out of the apartment you sold
• you completing the sale of that apartment.

J41721

SDLT_Geek said:

J41721 said:

Hi
I co-owned a council house with my mum and the council, we have around 23% ownership.

I sold my home/apartment in April 2021 and moved to a rental to relocate to a new area.  I am trying to buy a new home but getting nowhere in this crazy market.

Is there a time limit I need to buy my new home?  Does the 36 months rule apply here?

Thank you!
J

Assuming you are buying in England, then you have three years to complete the purchase of your new home if you are to escape the 3% surcharge to SDLT.  The 3 years run from the earlier of:

• you moving out of the apartment you sold
• you completing the sale of that apartment.

I completed and move out on April 2021 , it is an overseas properties not in UK.

Then I move to England and is looking for a new home, that means I have to complete by April 2024 to avoid the 3% surcharge?

Is it correct

J41721

Let me rewrite my cases, 

1. A non-uk - overseas - co-own council house with mum, shared ownership from 1997
2. A non-uk - overseas - apartment from 2010 - 2021 April - co-own with my husband, sold and completed on 2021 April
3. 2021 April - move to UK-England for work purpose

SDLT_Geek

J41721 said:

Let me rewrite my cases, 

1. A non-uk - overseas - co-own council house with mum, shared ownership from 1997
2. A non-uk - overseas - apartment from 2010 - 2021 April - co-own with my husband, sold and completed on 2021 April
3. 2021 April - move to UK-England for work purpose

The circumstances of your husband might be relevant too.  

Will he be moving into the new home too?  
Was he living with you in the overseas apartment?  

Does he have other property interests?

J41721

My husband was living with me in the overseas apartment from 2010 - 2021 April
My husband relocated with me to UK-England, he recently found a job, and yes he is living with me and we will move to the new home together (if we could find anything)
He did not have any other property interests

SDLT_Geek

J41721 said:

My husband was living with me in the overseas apartment from 2010 - 2021 April
My husband relocated with me to UK-England, he recently found a job, and yes he is living with me and we will move to the new home together (if we could find anything)
He did not have any other property interests

I agree that to escape the 3% surcharge to SDLT you will need to complete your purchase by April 2024.

That is assuming that the value of the share in the other property, the co-owned council home, is £40,000 or more at the time of the proposed purchase in England.  If the value is below that, then the 3% surcharge might not be a concern anyway: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09780

J41721

Thank you very much!