Stamp duty/ potential taxes

Bignutpudding

Hi there if you inherit a house what are the stamp duty implications going forward if I wanted to move from my current home? I’m sure I read somewhere that initially for 3 years you’re exempt from paying the 5% extra on top, but I may have that wrong.

p00hsticks

Assuming England and current rules...

If you are replacing your main residence (i.,e selling the house you currently live in in order to buy another to live in) then you don't pay the additional SDLT, regardless of how many other properties you own or how you came by them. 

If you buy the replacement home before selling the first then you'll pay the additional 5% up from on the purchase, but claim it back if you sell your old residence within three years .

Bigphil1474

You only pay stamp duty if you buy a house - if you inherited the house and already own one, you wouldn't pay stamp duty. You may have CGT to pay in the future on one, if you retain both. If you mean you are going to sell your current house and go live in the newly inherited house, then there's no SDLT but you may pay CGT at some point depending how long it takes you to sell and how long before you move.

Bignutpudding

Thanks for the comments. Basically I own a home and I’m about to inherit another. I am looking to sell my house in the new year and buy a new one. By that time, I’ll probably own my inherited property. So what I understand from the first comment is the fact I’ve inherited a property and as long as I’ve sold my current property before I buy my new one I won’t have to pay the extra 5% on top of the usual percentage? Sorry if I’m coming across dim here, thank you both again 

SDLT_Geek

Bignutpudding said:

Thanks for the comments. Basically I own a home and I’m about to inherit another. I am looking to sell my house in the new year and buy a new one. By that time, I’ll probably own my inherited property. So what I understand from the first comment is the fact I’ve inherited a property and as long as I’ve sold my current property before I buy my new one I won’t have to pay the extra 5% on top of the usual percentage? Sorry if I’m coming across dim here, thank you both again 

That is right.  The extra 5% stamp duty land tax (assuming you are buying in England) would not be due if you are selling your existing home to buy a new home for you to live in.  That is the case even though you then own other property.