We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Stamp Duty on re-mortgaged 2nd house?

13

Comments

  • SuseOrm
    SuseOrm Posts: 518 Forumite
    Third Anniversary 100 Posts Name Dropper
    Surely if you sold house B,  Buy House A and then buy something remarkably similar in a similar price range to B that could work ?  
  • SuseOrm
    SuseOrm Posts: 518 Forumite
    Third Anniversary 100 Posts Name Dropper
    Ms A owns both a main residence and a second home. She sells her main residence and purchases a new one. Although she has two properties at the end of the day of the transaction, she has replaced her main residence so the higher rates will not apply.
    From wards.uk.com solicitors 
  • Slithery
    Slithery Posts: 6,046 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    edited 18 March 2022 at 7:45PM
    SuseOrm said:
    Ms A owns both a main residence and a second home. She sells her main residence and purchases a new one. Although she has two properties at the end of the day of the transaction, she has replaced her main residence so the higher rates will not apply.
    From wards.uk.com solicitors
    Correct. As explained earlier the extra 3% is for 'additional properties'.
    Mrs A owns 2 properties before the transaction and 2 afterwards so there are no 'additional properties' taken into consideration as she has replaced (sold) her main residence to move to a different main residence.
    This isn't what is happening in the OP's situation.
  • SuseOrm
    SuseOrm Posts: 518 Forumite
    Third Anniversary 100 Posts Name Dropper
    Slithery said:
    SuseOrm said:
    Ms A owns both a main residence and a second home. She sells her main residence and purchases a new one. Although she has two properties at the end of the day of the transaction, she has replaced her main residence so the higher rates will not apply.
    From wards.uk.com solicitors 

    SuseOrm said:
    https://www.capextax.com/news/what-is-the-definition-of-main-residence-for-stamp-duty-land-tax
    That doesnt seem to always be the case.  
    Correct. As explained earlier the extra 3% is for 'additional properties'.
    Mrs A owns 2 properties before the transaction and 2 afterwards so there are no 'additional properties' taken into consideration as she has replaced (sold) her main residence to move to a different main residence.
    This isn't what is happening in the OP's situation.
    So there has to be a way around this
  • Slithery
    Slithery Posts: 6,046 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    edited 18 March 2022 at 8:08PM
    SuseOrm said:
    Slithery said:
    SuseOrm said:
    Ms A owns both a main residence and a second home. She sells her main residence and purchases a new one. Although she has two properties at the end of the day of the transaction, she has replaced her main residence so the higher rates will not apply.
    From wards.uk.com solicitors 

    SuseOrm said:
    https://www.capextax.com/news/what-is-the-definition-of-main-residence-for-stamp-duty-land-tax
    That doesnt seem to always be the case.  
    Correct. As explained earlier the extra 3% is for 'additional properties'.
    Mrs A owns 2 properties before the transaction and 2 afterwards so there are no 'additional properties' taken into consideration as she has replaced (sold) her main residence to move to a different main residence.
    This isn't what is happening in the OP's situation.
    So there has to be a way around this
    The only way around it is for the OP to sell their current main residence and only end up owning one property.
    Or do you think that the HMRC are stupid and haven't thought of this obvious loophole?

    I suggest that you fully read the SDLT manual before suggesting any other ideas you have which won't work...
    https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual
  • sheramber
    sheramber Posts: 24,624 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    But the OP doesn't' want to sell house B  so  there is no way round it.

    Also, the OP hasn't' said what the value of house B is. It may be more than house A., so he may be paying the extra 3% on the cheaper house. 

  • Snookie12cat
    Snookie12cat Posts: 805 Forumite
    500 Posts Third Anniversary Name Dropper
    edited 18 March 2022 at 8:04PM
    SuseOrm said:
    Slithery said:
    SuseOrm said:
    Ms A owns both a main residence and a second home. She sells her main residence and purchases a new one. Although she has two properties at the end of the day of the transaction, she has replaced her main residence so the higher rates will not apply.
    From wards.uk.com solicitors 

    SuseOrm said:
    https://www.capextax.com/news/what-is-the-definition-of-main-residence-for-stamp-duty-land-tax
    That doesnt seem to always be the case.  
    Correct. As explained earlier the extra 3% is for 'additional properties'.
    Mrs A owns 2 properties before the transaction and 2 afterwards so there are no 'additional properties' taken into consideration as she has replaced (sold) her main residence to move to a different main residence.
    This isn't what is happening in the OP's situation.
    So there has to be a way around this
    The really isn't. 
    I have been lumped with a £24k stamp duty bill because I have a new house before selling my current one, just like OP. 
    Unlike OP I will be selling my previous main residence and then I can claim £15k back. 

    Seems like a great and easy idea just turn your old house into a BTL, but any profit can easily be lost in the additional stamp duty alone depending on the value of the new house.
  • TheMightyShowerHead
    TheMightyShowerHead Posts: 29 Forumite
    Third Anniversary 10 Posts Name Dropper
    Could you purchase a second property, pay the additional stamp duty, let the original property for 2.5 years and then reclaim the additional stamp duty? Technically you've still disposed of your main residence, allbeit belatedly. (Assuming the sale goes to plan, or it could be an expensive mistake)
  • Slithery
    Slithery Posts: 6,046 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    TheMightyShowerHead said:
    Could you purchase a second property, pay the additional stamp duty, let the original property for 2.5 years and then reclaim the additional stamp duty?
    Only if they sell it within 3 years.
  • SuseOrm
    SuseOrm Posts: 518 Forumite
    Third Anniversary 100 Posts Name Dropper
    TheMightyShowerHead said:
    Could you purchase a second property, pay the additional stamp duty, let the original property for 2.5 years and then reclaim the additional stamp duty? Technically you've still disposed of your main residence, allbeit belatedly. (Assuming the sale goes to plan, or it could be an expensive mistake)
    I think if there was ever a time to sell it would be now not in 2 1/2 years time
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.5K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.5K Spending & Discounts
  • 247.4K Work, Benefits & Business
  • 604.2K Mortgages, Homes & Bills
  • 178.5K Life & Family
  • 261.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture