Stamp duty on 1st UK property // already have 2x$30K properties in Europe

Ficler1977

hi, Checked everywhere, could not find the answer.
Planning to buy my very 1st property here in UK
I own 2 properties worth £35K each on the continent.
I understand if property is worth less that £40K it is not classed as property.
So my question is: is this £40K threshold a combined figure for all properties I own. or per each one.

I mean am I classed as 1st time buyer in UK or not // Am I paying higher tax duty?
Difference £500 vs £8000 in stamp duty.

HMRC website says:
Do not include property (or part of a property) if any of the following apply:
-the property is worth less than £40,000 
If any of you will own, or part own more than one residential property worth £40,000 or more, you will have to pay the higher rates on your new purchase (unless there is another reason why the higher rates do not apply).

What have I done so far:
-Searched internet whenever I could
-asked Conveyancer, said he is not a tax adviser.
-rang HMRC's SDLT helpline and I don't understand, their answer is yes and no (seriously)
on my question "so how much will I be paying?" "we don't calculate tax here"

£40K is mentioned here:
(LINK TO HMRC)
unable to post links so google:
stamp duty £40000 relief

Please help Thank you

marcia_

Ficler1977 said:

hi, Checked everywhere, could not find the answer.
Planning to buy my very 1st property here in UK
I own 2 properties worth £35K each on the continent.
I understand if property is worth less that £40K it is not classed as property.
So my question is: is this £40K threshold a combined figure for all properties I own. or per each one.

I mean am I classed as 1st time buyer in UK or not // Am I paying higher tax duty?
Difference £500 vs £8000 in stamp duty.

HMRC website says:
Do not include property (or part of a property) if any of the following apply:
-the property is worth less than £40,000 
If any of you will own, or part own more than one residential property worth £40,000 or more, you will have to pay the higher rates on your new purchase (unless there is another reason why the higher rates do not apply).

What have I done so far:
-Searched internet whenever I could
-asked Conveyancer, said he is not a tax adviser.
-rang HMRC's SDLT helpline and I don't understand, their answer is yes and no (seriously)
on my question "so how much will I be paying?" "we don't calculate tax here"

£40K is mentioned here:
(LINK TO HMRC)
unable to post links so google:
stamp duty £40000 relief

Please help Thank you

 No you are not a first time buyer. 

mybestattempt

Ficler1977 said:

hi, Checked everywhere, could not find the answer.
Planning to buy my very 1st property here in UK
I own 2 properties worth £35K each on the continent.
I understand if property is worth less that £40K it is not classed as property.
So my question is: is this £40K threshold a combined figure for all properties I own. or per each one.

I mean am I classed as 1st time buyer in UK or not // Am I paying higher tax duty?
Difference £500 vs £8000 in stamp duty.

HMRC website says:
Do not include property (or part of a property) if any of the following apply:
-the property is worth less than £40,000 
If any of you will own, or part own more than one residential property worth £40,000 or more, you will have to pay the higher rates on your new purchase (unless there is another reason why the higher rates do not apply).

What have I done so far:
-Searched internet whenever I could
-asked Conveyancer, said he is not a tax adviser.
-rang HMRC's SDLT helpline and I don't understand, their answer is yes and no (seriously)
on my question "so how much will I be paying?" "we don't calculate tax here"

£40K is mentioned here:
(LINK TO HMRC)
unable to post links so google:
stamp duty £40000 relief

Please help Thank you

If the property you intend to buy is in England or Northern Ireland then the relevant official HMRC guidance for Stamp Duty Land Tax (SDLT) is here:

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm29845

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09765

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09785

My understanding from that guidance is that:

• you are not a first time buyer

• if the market value of each property you own outside the UK is less than £40000 then the higher rate of SDLT does not apply to the property you intend to buy

SDLT is self-assessed, so HMRC will not calculate the amount due for you, the onus is upon you to make an accurate and complete return.

As it is a "process now, check later" return HMRC may open an enquiry within 9 months of the filing date, so it is important that you are confident about the market values of each property outside the UK.

@SDLT_Geek or others may be able to confirm if my understanding is correct.

Andy_L

you are a first time buyer in the UK, but the legislation simply refers to a first time buyer, which it defines as:

"6

(1)In this Schedule “first-time buyer” means an individual who—

(a)has not previously been a purchaser in relation to a land transaction the main subject-matter of which was a major interest in a dwelling,

(b)has not previously acquired [F3—

(i)]an equivalent interest in a dwelling situated in a country or territory outside England, Wales and Northern Ireland, [F4or

(ii)an interest of a kind mentioned in section 117(2) in a dwelling situated in Wales,]"

https://www.legislation.gov.uk/ukpga/2003/14/schedule/6ZA

saajan_12

Ficler1977 said:

I mean am I classed as 1st time buyer in UK or not // Am I paying higher tax duty?
Difference £500 vs £8000 in stamp duty.

u

These are not the same question. The words "1st time buyer" have a specific meaning which entitles people who have never bought property to a discounted SDLT rate for certain purchase values. That's different to being an "additional home" buyer which would give rise to the 5% higher tax rate. 

You are not a 1st time buyer as you have previously bought residential property regardless of location or value. 

However I admire the research you've done already, so keen to be more helpful and answer your second question. SDLT_Geek will hopefully confirm as the expert here, but from my understanding, the 40k restriction is per property, so the criteria for the extra 5% would not be met. 

Ficler1977

Thank you all.
Yes so the real question here is, am I paying the higher 5% tax or not?
Difference £500 vs £8000 in stamp duty.

Ficler1977

not sure how to edit above post.
I understand I am not 1st time buyer but still not have to pay the higher 5%
With all my existing properties are worth less than £40000 each (worth £70 000 combined).
I understand I am paying £500 not the £8000 on property worth 150K
Thank you