Solicitor Saying Stamp Duty is £10k more...

corkyefes

Hi All,

Wondering if you can help me out.... We are currently in the middle of puchasing a property for £340k.

I carried out a check on the government website and it came out that the stamp duty would be £4.5k.

My mortgage broker also told me the same.

Now my solictor has told me the stamp duty is going to be £14,700....

My current situation:

Property 1 - Lived in from birth.

Purchased property from my parents in approximately 2006.

Property 2 - Moved into Property in 2014, which then becomes my main residence.

Started to rent out Property 1.

My solictor is saying that because I lived in property 1 after buying it and then started renting it out when i moved out, then that is the reason why it is £14.7k.

However based on information from my mortgage broker and the check I did on the government website, I thought that as property 2 is my main residence and the new property I am proposing to buy replaces that residence, I would only be liable for the £4.5k stamp duty?

Any advice greatfully helpful.

user1977

Are you selling Property 2? Your previous thread suggested you were, but you haven't mentioned it above? 

"Replacing" means selling your old residence, not just moving out of it.

RogerPensionGuy

Is this below why you are paying more SDLT?

☆☆☆

https://www.patrickcannon.net/practice-areas/stamp-duty-land-tax-advisor/stamp-duty-on-second-home/#:~:text=Buying a second or additional,which could save you money.

corkyefes

user1977 said:

Are you selling Property 2? Your previous thread suggested you were, but you haven't mentioned it above? 

"Replacing" means selling your old residence, not just moving out of it.

Sorry, yes i am selling property 2, to buy and move into the new property.

Property one is currently being rented out and has been for the last 10 years.

user1977

Then gently point your solicitor towards the relief for replacing your main residence.

corkyefes

user1977 said:

Then gently point your solicitor towards the relief for replacing your main residence.

Hi Thanks,

Yes I have done that, however they have said the reasoning is "because I have previously lived in the property i am renting'.... Not sure what to say.

user1977

corkyefes said:

user1977 said:

Then gently point your solicitor towards the relief for replacing your main residence.

Hi Thanks,

Yes I have done that, however they have said the reasoning is "because I have previously lived in the property i am renting'.... Not sure what to say.

I don't see the relevance of property 1. You can have a vast property empire, but if you're selling and buying main residences then you just pay the normal rate.

corkyefes

user1977 said:

corkyefes said:

user1977 said:

Then gently point your solicitor towards the relief for replacing your main residence.

Hi Thanks,

Yes I have done that, however they have said the reasoning is "because I have previously lived in the property i am renting'.... Not sure what to say.

I don't see the relevance of property 1. You can have a vast property empire, but if you're selling and buying main residences then you just pay the normal rate.

I agree, I mentioned that but they said that because i've actually lived in it, thats why its higher.

Apparently if i had bought it and just rented it out, without liviing there, then the standard 4.5k fee would apply.

JGB1955

Did you pay SDLT in 2014 when you acquired your second property?

annetheman

@SDLT_Geek will probably be able to advise if they still use the forum - always really helpful with this stuff!

user1977

corkyefes said:

user1977 said:

corkyefes said:

user1977 said:

Then gently point your solicitor towards the relief for replacing your main residence.

Hi Thanks,

Yes I have done that, however they have said the reasoning is "because I have previously lived in the property i am renting'.... Not sure what to say.

I don't see the relevance of property 1. You can have a vast property empire, but if you're selling and buying main residences then you just pay the normal rate.

I agree, I mentioned that but they said that because i've actually lived in it, thats why its higher.

Apparently if i had bought it and just rented it out, without liviing there, then the standard 4.5k fee would apply.

Ask them to point you towards what they think the relevant provision is.