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Stamp Duty

I am buying a house with cash which needs gutting so I am planning to stay in my current owned house until new house is ready. I am selling my current house and hope to complete when I’m ready to move into new house. Would I have to pay stamp duty on one I’m buying as having 2 properties even though I will be selling my current one eventually. 

Comments

  • jonnydeppiwish!
    jonnydeppiwish! Posts: 1,107
    First Post Mortgage-free Glee! Name Dropper First Anniversary
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    Yes plus the extra 3%
    2006 LBM £28,000+ in debt.
    2021 mortgage and debt free, working part time and living the dream
  • SDLT_Geek
    SDLT_Geek Posts: 2,429
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    Tobes17 said:
    I am buying a house with cash which needs gutting so I am planning to stay in my current owned house until new house is ready. I am selling my current house and hope to complete when I’m ready to move into new house. Would I have to pay stamp duty on one I’m buying as having 2 properties even though I will be selling my current one eventually. 
    Is the property you are buying in England, so that the relevant stamp duty is stamp duty land tax?  It would also be useful to have a figure for the price, as the answers will then be more meaningful.
  • Tobes17
    Tobes17 Posts: 2
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    I’m buying one for 335k, my current house will go on the market for 275k but will sell prob 3 months after I’ve completed on new one. 
  • jonnydeppiwish!
    jonnydeppiwish! Posts: 1,107
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    Tobes17 said:
    I’m buying one for 335k, my current house will go on the market for 275k but will sell prob 3 months after I’ve completed on new one. 
    As previous, assuming you’re in England then yes you’ll have to pay SDLT plus 3% surcharge. You can then claim the surcharge back when you sell your other property. An extra £10,050 on top of the standard £4,250.
    2006 LBM £28,000+ in debt.
    2021 mortgage and debt free, working part time and living the dream
  • mexican_dave
    mexican_dave Posts: 249
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    Just one thing jonnydeppiwish didn't say was there is a 3-year time limit to selling the first house to claim back the "surcharge", so make sure your project doesn't overrun. See link:
    https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property#:~:text=If you sell or give,to you for another reason
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