Stamp duty calculation question

twister_teddy

Hi everyone,

I have a question regarding stamp duty on buying a new house.

Currently, I solely own a house where I live with my family and this is our primary residence. 

Additionally I jointly own a flat with my partner that is being rented out. 

Both above properties are in England. 

If I sell my primary residence and use the proceeds to purchase a new house worth £500,000, will I have to pay the standard stamp duty calculated as primary residence to £12,500 or will it be calculated at additional property rate at £27,500? Any insights or information would be greatly appreciated. Thanks!

SDLT_Geek

twister_teddy said:

Hi everyone,

I have a question regarding stamp duty on buying a new house.

Currently, I solely own a house where I live with my family and this is our primary residence. 

Additionally I jointly own a flat with my partner that is being rented out. 

Both above properties are in England. 

If I sell my primary residence and use the proceeds to purchase a new house worth £500,000, will I have to pay the standard stamp duty calculated as primary residence to £12,500 or will it be calculated at additional property rate at £27,500? Any insights or information would be greatly appreciated. Thanks!

If you alone are the beneficial owner of the new property, it seems you meet all of the conditions to count as "replacing your only or main residence" as set out here https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09800.  That would mean that the extra 3% will not apply.

It would be more complicated if your parther is to have a share in the new property.  The analysis would then depend on whether you are married / civil partners or not.

propertyrental

reference to 'my family' and 'my partner' do not make the legal position clear.

Are you married?

twister_teddy

SDLT_Geek said:

If you alone are the beneficial owner of the new property, it seems you meet all of the conditions to count as "replacing your only or main residence" as set out here https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09800.  That would mean that the extra 3% will not apply.

Correct! I will be the sole owner for the new property, thanks for confirming.

twister_teddy

propertyrental said:

reference to 'my family' and 'my partner' do not make the legal position clear.

Are you married?

I don't think its relevant given the property I'm planning to buy will be in my sole ownership? My family will be staying with in that property.