First time buyer stamp duty - Main residency?

everfor007

i born in asia came to uk around 15 year ago and 8 year got british citizenship and i made a uk a main residence and my kids are born here. . Back in  home country, my dad left the property on my name and currently my mom and sister living in it and just visiting around 1 years once for 2 weeks and no plans to sell it.

  After so many years of renting and saved some money  to buy first time in uk. so my question is stamp duty for first timing buy house,   i need to pay  as first time buyer rate or additional 3% i need pay ?

From below link sdlt calculator, if you are making the buying house as main residency then it's not adding additional 3% and treating as first time buyer.
https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/

Please advise, whether i am categorised under first time buyer sdlt rate or not?

canaldumidi

First time buyers will need to declare that they have never owned a property either in the UK or abroad.

https://www.stampdutycalculator.org.uk/stamp-duty-first-time-buyers.htm

You currently own one property.

After the purchase you will own 2 properties.

You are not disposing of your main residence

Hence the additional 3% will apply.

p00hsticks

About how much is the property in your home country worth (in £) ?

According to this government webpage, I donlt think you will be eligible for the first time buyer SDLT as

'A first time buyer is defined as an individual or individuals who have never owned an interest in a residential property in the United Kingdom or anywhere else in the world and who intends to occupy the property as their main residence.'

https://www.gov.uk/government/publications/stamp-duty-land-tax-relief-for-first-time-buyers/stamp-duty-land-tax-relief-for-first-time-buyers 

However I think you may not have to pay the additional 3% if the propetry you already own is worth less than £40,000

You must pay the higher Stamp Duty Land Tax (SDLT) rates when you buy a residential property (or a part of one) for £40,000 or more, if all the following apply:

• it will not be the only residential property worth £40,000 or more that you own (or part own) anywhere in the world

https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

But I'm not an expert - hopefully someone will be able to either confirm or correct me.  

everfor007

ok if  i am paying additional 3% as additional home.    What happens to my mortgage, which is applied as first time buyer and got approved? i've checked natwest mortgage calculator there is no second home buyer, only it as option i.e first time buyer or re-mortgage.   i don't have mortgage on inherited home.  whether i've reapply again?

stig

p00hsticks said:

About how much is the property in your home country worth (in £) ?

According to this government webpage, I donlt think you will be eligible for the first time buyer SDLT as

'A first time buyer is defined as an individual or individuals who have never owned an interest in a residential property in the United Kingdom or anywhere else in the world and who intends to occupy the property as their main residence.'

https://www.gov.uk/government/publications/stamp-duty-land-tax-relief-for-first-time-buyers/stamp-duty-land-tax-relief-for-first-time-buyers 

However I think you may not have to pay the additional 3% if the propetry you already own is worth less than £40,000

You must pay the higher Stamp Duty Land Tax (SDLT) rates when you buy a residential property (or a part of one) for £40,000 or more, if all the following apply:

• it will not be the only residential property worth £40,000 or more that you own (or part own) anywhere in the world

https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

But I'm not an expert - hopefully someone will be able to either confirm or correct me.  

You’re right - FTB relief is lost if you have an ownership interest in residential property of any value, but one of the conditions for the higher rate is that the interest involved is worth at least £40k.

everfor2007 - mortgage lenders conditions have no connection to the tax rules at all, they can give whatever concessions they want and if it’s your first mortgage it’s very possible they don’t care if you own property abroad too.

canaldumidi

The term 'First Time Buyer' has no single definition.

HMRC have their definition as regards tax and banks may have a completely different definition regarding mortgages.

So yes, you may well be a FTB so far as a mortgage lender is concerned since you have no current mortgage and/or have never had a mortgage.

everfor007

>>You’re right - FTB relief is lost if you have an ownership interest in residential property of any value, but one of the conditions for the higher rate is that the interest involved is worth at least £40k.

>>You’re right - FTB relief is lost if you have an ownership interest in residential property of any value, but one of the conditions for the higher rate is that the interest involved is worth at least £40k.

I am not getting why i fall in this category, despite overseas home is not main residence and almost left 15 years ago and i can't sell because my mom is there..


This buying UK Property is my main residence.  if i've paid additional 3%, What if in future, i want to sell/exchange this uk property and buy another property same time or with in 3 year,  at that time what happens of buying home stamp duty? Do i get rebate of 3% in stampduty or end up paying  additional 3%

kindly advise

everfor007

I am not getting why i fall in this category, despite overseas home is not main residence and almost left 15 years ago and i can't sell because my mom is there..


This buying UK Property is my main residence.  if i paid additional 3%, What if in future, i want to sell/exchange this uk property and buy another property same time or with in 3 year,  at that time what happens of buying home stamp duty? Do i get rebate of 3% in stampduty or end up paying  additional 3%

kindly advise

grumiofoundation

everfor007 said:

I am not getting why i fall in this category, despite overseas home is not main residence and almost left 15 years ago and i can't sell because my mom is there..

Because you are not a first time buyer and own another home. 

You could sell/gift the share you own (in property abroad), then would not need to pay the +3%. (edit: see below - need to do before buying property A)

everfor007 said:

This buying UK Property is my main residence (property A).  if i paid additional 3%, What if in future, i want to sell/exchange this uk property and buy another property (property B ) same time or with in 3 year,  at that time what happens of buying home stamp duty? Do i get rebate of 3% in stampduty or end up paying  additional 3%

kindly advise

if you bought another property in the future as your main residence (Property B ), and sell the property you are currently buying (property A) you would not pay +3% as you would be replacing your main residence (note 'replacing' in context of SDLT requires a property to be disposed of, not simply moving house).
If you buy property B then sell property A later you can claim refund of the +3%.

SDLT_Geek

grumiofoundation said:

everfor007 said:

I am not getting why i fall in this category, despite overseas home is not main residence and almost left 15 years ago and i can't sell because my mom is there..

Because you are not a first time buyer and own another home. 

You could sell/gift the share you own, then would not need to pay the +3%.

everfor007 said:

This buying UK Property is my main residence (property A).  if i paid additional 3%, What if in future, i want to sell/exchange this uk property and buy another property (property B ) same time or with in 3 year,  at that time what happens of buying home stamp duty? Do i get rebate of 3% in stampduty or end up paying  additional 3%

kindly advise

if you bought another property in the future as your main residence (Property B ), and sell the property you are currently buying (property A) you would not pay +3% as you would be replacing your main residence (note 'replacing' in context of SDLT requires a property to be disposed of, not simply moving house).
If you buy property B then sell property A later you can claim refund of the +3%.

A good reply.

Another point to add: It will not be possible to reclaim the extra 3% SDLT due on Property A by virtue of:
(a)  Later selling /disposing of the property abroad (you have not lived in it for over three years)
(b)  Later selling / disposing of Property A.

everfor007

is it same additional 3% applicable, if overseas property is commercial rather than residential?