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  • FIRST POST
    • Cotta
    • By Cotta 7th Nov 19, 7:49 AM
    • 3,417Posts
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    Cotta
    Stamp Duty in Northern Ireland
    • #1
    • 7th Nov 19, 7:49 AM
    Stamp Duty in Northern Ireland 7th Nov 19 at 7:49 AM
    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
Page 1
    • RikM
    • By RikM 7th Nov 19, 8:44 AM
    • 689 Posts
    • 402 Thanks
    RikM
    • #2
    • 7th Nov 19, 8:44 AM
    • #2
    • 7th Nov 19, 8:44 AM
    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
    Last edited by RikM; 07-11-2019 at 8:47 AM.
    • Cotta
    • By Cotta 7th Nov 19, 9:29 AM
    • 3,417 Posts
    • 1,749 Thanks
    Cotta
    • #3
    • 7th Nov 19, 9:29 AM
    • #3
    • 7th Nov 19, 9:29 AM
    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
    Originally posted by RikM

    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.
    • BigAl94
    • By BigAl94 7th Nov 19, 10:07 AM
    • 1,756 Posts
    • 998 Thanks
    BigAl94
    • #4
    • 7th Nov 19, 10:07 AM
    • #4
    • 7th Nov 19, 10:07 AM
    Your broker is correct https://www.fgibson.co.uk/factsheets/capital-taxes/stamp-duty-land-tax
    • guiriman
    • By guiriman 7th Nov 19, 10:18 AM
    • 445 Posts
    • 252 Thanks
    guiriman
    • #5
    • 7th Nov 19, 10:18 AM
    • #5
    • 7th Nov 19, 10:18 AM
    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 issue
    • tommie
    • By tommie 7th Nov 19, 11:43 AM
    • 347 Posts
    • 255 Thanks
    tommie
    • #6
    • 7th Nov 19, 11:43 AM
    • #6
    • 7th Nov 19, 11:43 AM
    !!



    https://www.express.co.uk/news/uk/235769/Islamic-law-used-to-dodge-stamp-duty
    • Cotta
    • By Cotta 8th Nov 19, 8:10 AM
    • 3,417 Posts
    • 1,749 Thanks
    Cotta
    • #7
    • 8th Nov 19, 8:10 AM
    • #7
    • 8th Nov 19, 8:10 AM
    So stamp duty on a property up to 250k is 5% and if it's a second property its 8%?
    • guiriman
    • By guiriman 8th Nov 19, 9:38 AM
    • 445 Posts
    • 252 Thanks
    guiriman
    • #8
    • 8th Nov 19, 9:38 AM
    • #8
    • 8th Nov 19, 9:38 AM
    So stamp duty on a property up to 250k is 5% and if it's a second property its 8%?
    Originally posted by Cotta

    No, 2% if only property and 5% if it's a second property. You have up to two years (IIRC) in which you can get the 3% difference back if you sell one of the houses
    • Cotta
    • By Cotta 8th Nov 19, 1:05 PM
    • 3,417 Posts
    • 1,749 Thanks
    Cotta
    • #9
    • 8th Nov 19, 1:05 PM
    • #9
    • 8th Nov 19, 1:05 PM
    No, 2% if only property and 5% if it's a second property. You have up to two years (IIRC) in which you can get the 3% difference back if you sell one of the houses
    Originally posted by guiriman
    That's 12,500 on a 250,000 house - phew.
    • KiwiCoop
    • By KiwiCoop 8th Nov 19, 5:58 PM
    • 78 Posts
    • 44 Thanks
    KiwiCoop
    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?
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