Stamp Duty

Tashbarnes

Hello, can anyone help me to understand what stamp duty contributions.

We are buying a shared ownership property and i would like to know if we need to pay stamp duty on the 25% share we are buying (£100,000) or the full value (£440,000).  

We are not first time buyers, however we do not own an existing property. 

Thank you 

chanz4

you can normaly opt to pay at later date on staircasing

UKK8

Purchased a buy to let in 2021 and paid the higher rate for a buy to let property while living overseas (for over 20 years). 

Moved back to the UK end of 2022 and stayed in the buy to let while looking for principal residence, never intended to make the buy to let principal residence, don’t want to sell the buy to let. The solicitor is telling us we have to pay the higher rate on the purchase price of the new principal residence, how can that be correct? Does anyone have an opinion with back up that we can take to the solicitor to only pay stamp duty on a principal residence? Thanks so much. 

simon_or

I think you're misunderstanding the main residence relief, it wouldn't apply in the situation you've described.

Before completion you own one property (your BTL) and after completion you'll own two properties (BTL and new home), this triggers the 3% surcharge.

K_S

UKK8 said:

Purchased a buy to let in 2021 and paid the higher rate for a buy to let property while living overseas (for over 20 years). 

Moved back to the UK end of 2022 and stayed in the buy to let while looking for principal residence, never intended to make the buy to let principal residence, don’t want to sell the buy to let. The solicitor is telling us we have to pay the higher rate on the purchase price of the new principal residence, how can that be correct? Does anyone have an opinion with back up that we can take to the solicitor to only pay stamp duty on a principal residence? Thanks so much. 

@UKK8 Unless I'm missing something obvious, your solicitor seems to be correct in their opinion that the higher rate would be due.

@SDLT_Geek is the resident expert on stamp duty, hopefully they'll see this post.

SDLT_Geek

UKK8 said:

Purchased a buy to let in 2021 and paid the higher rate for a buy to let property while living overseas (for over 20 years). 

Moved back to the UK end of 2022 and stayed in the buy to let while looking for principal residence, never intended to make the buy to let principal residence, don’t want to sell the buy to let. The solicitor is telling us we have to pay the higher rate on the purchase price of the new principal residence, how can that be correct? Does anyone have an opinion with back up that we can take to the solicitor to only pay stamp duty on a principal residence? Thanks so much. 

Your new home is in England, so stamp duty land tax is the relevant tax and you are looking at the 3% surcharge?  If so, from what you have said the extra 3% will be due on your purchase, because you will own more than one dwelling.
  
What could save you from the extra 3% is if there is a property, perhaps abroad, which you have sold, which you lived in as your only or main residence within the last three years.  Did you own a property overseas which you lived in and sold / disposed of?

Hopefully you will have been back in the UK long enough by the time of completion (183 days) not to have to pay the 2% surcharge. 

Another question for you.  At the time of the purchase of the buy to let in 2021, did you own another property anywhere in the world?  If not, then perhaps the higher rates were not due on that purchase.  If that was in England, and you paid the extra 3%, then perhaps that can be reclaimed now.

UKK8

That’s a great point, I sold my main residence overseas in April 2022, thank you.