Stamp Duty in Northern Ireland
Cotta
Posts: 3,667 Forumite
in N. Ireland
Hi All,
My partner and I just got married and we we both own our own homes. We are looking to buy a home of our own but we've been warned about stamp duty particularly if we intend to keep one of our properties.
What are the stamp duty thresholds and fees?
Thanks in advance
My partner and I just got married and we we both own our own homes. We are looking to buy a home of our own but we've been warned about stamp duty particularly if we intend to keep one of our properties.
What are the stamp duty thresholds and fees?
Thanks in advance
0
Comments
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I think you might mean capital gains tax...
Stamp duty is paid on the new property. I'm not aware that it's affected by anything other than the price (and whatever "holidays" the govt currently has in place).
Your old properties will be liable to cgt if you haven't been living in them full time - the tax man treats them as an asset rather than a home. So you would be liable to be taxed on the difference between the purchase and selling prices (the gain) on the property that had lapsed in occupation.
Edited to add the link: https://www.gov.uk/topic/business-tax/stamp-taxes0 -
I think you might mean capital gains tax...
Stamp duty is paid on the new property. I'm not aware that it's affected by anything other than the price (and whatever "holidays" the govt currently has in place).
Your old properties will be liable to cgt if you haven't been living in them full time - the tax man treats them as an asset rather than a home. So you would be liable to be taxed on the difference between the purchase and selling prices (the gain) on the property that had lapsed in occupation.
Edited to add the link: https://www.gov.uk/topic/business-tax/stamp-taxes
Thanks, it was my mortgage broker who warned me when I was looking into renewing my product that any second home would be liable for increased stamp duty.0 -
Your broker is correct https://www.fgibson.co.uk/factsheets/capital-taxes/stamp-duty-land-tax0
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Not sure if you can avoid the extra 3% stamp duty if you put the new property solely in the name of the person who sells their existing one. If you sell both then it's not an issue0
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So stamp duty on a property up to £250k is 5% and if it's a second property its 8%?0
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If you buy in joint names and keep one or both other houses you'll be liable for the additional 3% SDLT surcharge. Other than selling both houses the only work-around would be for one of you to sell theirs and buy the new one in that person's name only.
Standard SDLT is not paid on the first £125k so on a £250k house it would be £2500 but with the surcharge it's £10,000. Possibly a decent incentive for flogging at least one of your houses?0
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