2nd Home stamp duty

gadger999
gadger999 Posts: 145 Forumite
Part of the Furniture 100 Posts Combo Breaker
edited 1 November 2024 at 6:25PM in Cutting tax
My sister in law has just split up with her partner and is splitting the proceeds of their home which will be about 300k each..
She obviously needs to buy a new house for her and her daughter but about 5 years ago was left a 25 % share in her mother's house from her father's will and this is now classed as a second home so she will get hit after the recent budget with an extra 5% stamp duty, is the best option to take the tax hit or remove her name from the 2nd house and transfer it back to mother or sister...all going to cost money but cant think of any other options
Thanks in advance 

Comments

  • eskbanker
    eskbanker Posts: 36,928 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Surely the Budget changes to stamp duty would only apply if she was to buy a second property from now onwards, so won't affect her purchase of a main residence while already owning a second property?
  • mebu60
    mebu60 Posts: 1,513 Forumite
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    As she is replacing her principal private residence there should not be any additional SDLT to pay over the standard rate. 
  • gadger999
    gadger999 Posts: 145 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    mebu60 said:
    As she is replacing her principal private residence there should not be any additional SDLT to pay over the standard rate. 
    She's been told by her solicitor it does count as a 2nd property and is liable for the extra stamp duty 
  • eskbanker
    eskbanker Posts: 36,928 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    gadger999 said:
    mebu60 said:
    As she is replacing her principal private residence there should not be any additional SDLT to pay over the standard rate. 
    She's been told by her solicitor it does count as a 2nd property and is liable for the extra stamp duty 
    Sounds like some wires getting crossed somewhere - is the solicitor definitely fully aware of exactly what's being proposed, i.e. that she's looking to purchase somewhere in which to live, or in other words a primary residence, not a second home?  Has the solicitor explained anything in writing?
  • Grumpy_chap
    Grumpy_chap Posts: 18,003 Forumite
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    gadger999 said:
    mebu60 said:
    As she is replacing her principal private residence there should not be any additional SDLT to pay over the standard rate. 
    She's been told by her solicitor it does count as a 2nd property and is liable for the extra stamp duty 
    It seems as though the Solicitor may be mistaken.
    If you sell your PPR and buy another PPR, standard rate SDLT applies.
    If the sale and purchase are not aligned in dates, the higher rate may apply but then reclaim so long as current PPR is sold within appropriate time limit.
  • mebu60
    mebu60 Posts: 1,513 Forumite
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    gadger999 said:
    mebu60 said:
    As she is replacing her principal private residence there should not be any additional SDLT to pay over the standard rate. 
    She's been told by her solicitor it does count as a 2nd property and is liable for the extra stamp duty 
    See @Bookworm105 's response in this thread (different scenario but principle of main home replacement applies):
    SDLT on main residence when owning a rental property — MoneySavingExpert Forum
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