Stamp Duty in Northern Ireland

Cotta
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

Comments

  • RikM
    RikM Posts: 811 Forumite
    First Anniversary First Post
    edited 7 November 2019 at 9:47AM
    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
  • Cotta
    Cotta Posts: 3,667 Forumite
    RikM wrote: »
    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.
  • BigAl94
    BigAl94 Posts: 1,919 Forumite
    First Post Combo Breaker First Anniversary
    Your broker is correct https://www.fgibson.co.uk/factsheets/capital-taxes/stamp-duty-land-tax
  • guiriman
    guiriman Posts: 525 Forumite
    First Post Name Dropper First Anniversary
    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
    tommie Posts: 380 Forumite
    First Anniversary First Post Combo Breaker
    !!



    https://www.express.co.uk/news/uk/235769/Islamic-law-used-to-dodge-stamp-duty
  • Cotta
    Cotta Posts: 3,667 Forumite
    So stamp duty on a property up to £250k is 5% and if it's a second property its 8%?
  • guiriman
    guiriman Posts: 525 Forumite
    First Post Name Dropper First Anniversary
    Cotta wrote: »
    So stamp duty on a property up to £250k is 5% and if it's a second property its 8%?


    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
    Cotta Posts: 3,667 Forumite
    guiriman wrote: »
    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

    That's £12,500 on a £250,000 house - phew.
  • KiwiCoop
    KiwiCoop Posts: 113 Forumite
    First Post First Anniversary
    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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