Draft land transaction form help

Possiblyretired

We're buying a new home before selling our current home.

We will not be selling our current home until we've decorated the new home but we're hoping to be able to claim back some of the stamp duty paid if we sell within the next thirty six months.

My solicitor has just sent through a draft stamp duty form, should I should ask for this bit to be amended? Is it important?

Is the property being purchased replacing your main residence? No - 2nd Home / Buy to Let applied.

user1977

No and no, because you're not (yet) replacing your main residence - you pay the additional duty and claim it back after you complete your sale. Essentially it's a 2nd home until it becomes your only home.

I presume you've already discussed your plans with your solicitor anyway?

SDLT_Geek

Possiblyretired said:

We're buying a new home before selling our current home.

We will not be selling our current home until we've decorated the new home but we're hoping to be able to claim back some of the stamp duty paid if we sell within the next thirty six months.

My solicitor has just sent through a draft stamp duty form, should I should ask for this bit to be amended? Is it important?

Is the property being purchased replacing your main residence? No - 2nd Home / Buy to Let applied.

Are you buying in England, so that the relevant stamp duty is stamp duty land tax?

If so, that is not one of the questions on the land transaction return form. 

Perhaps it is a form used by your solicitor at an early stage in the transaction.  I suggest you say to your solicitor: "We intend to live in the property being purchased as our only residence, but because we will only sell our present home after we have completed the purchase, we expect to pay the higher rates of SDLT in the first instance."

Possiblyretired

@SDLT_Geek -  thanks, yes probably is solicitor draft form. I guess I'm concerned because we're not in the early stages and completion is expected before the end of next week.
The solicitor had initially quoted me the lower stamp duty rate, I emailed solicitor, saying

" We're buying a new home before selling our current home.

We will not be selling our current home until we've decorated the new home but we're hoping to be able to claim back some of the stamp duty paid if we sell within the next thirty six months "

And now, I've got a higher stamp duty rate, which is fine, I'm just struggling with understanding why the new home is not considered the main residence. 

@user1977, thanks, guess just confused re main residence. Seems to me that I should say on the form that new home will be main residence.

Possiblyretired

@SDLT_Geek I'll email the solicitor what you suggested. 

user1977

Possiblyretired said:

@SDLT_Geek -  thanks, yes probably is solicitor draft form. I guess I'm concerned because we're not in the early stages and completion is expected before the end of next week.
The solicitor had initially quoted me the lower stamp duty rate, I emailed solicitor, saying

" We're buying a new home before selling our current home.

We will not be selling our current home until we've decorated the new home but we're hoping to be able to claim back some of the stamp duty paid if we sell within the next thirty six months "

And now, I've got a higher stamp duty rate, which is fine, I'm just struggling with understanding why the new home is not considered the main residence. 

@user1977, thanks, guess just confused re main residence. Seems to me that I should say on the form that new home will be main residence.

It is your main residence, but the relief isn't triggered until you replace your main residence by completing the sale of your old one. Otherwise it's irrelevant what you use the new property for.

Possiblyretired

@user1977 Still seems odd and would make much more sense if I said that it's my main residence and get to claim relief if or when triggered. 
Anyway, as long as I am doing it right.
I just want to make sure that I won't lose out on the relief by ticking a wrong box accidentally. 

user1977

Possiblyretired said:

@user1977 Still seems odd and would make much more sense if I said that it's my main residence and get to claim relief if or when triggered. 
Anyway, as long as I am doing it right.
I just want to make sure that I won't lose out on the relief by ticking a wrong box accidentally. 

It isn't odd. You're increasing the number of residential properties you own, so you pay the additional duty. It doesn't matter what you use either of the houses for.

If (and only if) you replace your main residence (by buying a new one and selling your old one within a period of 36 months) then you get the relief and can claim the refund. But there's nothing special you need to do or declare until you reach that point.