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Stamp duty question

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Comments

  • SDLT_Geek
    SDLT_Geek Posts: 2,464
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    edited 11 November 2018 at 7:23AM
    It sounds as if you paid a little too much SDLT. It would have been £15,000 if the price was £500,000 and you say your price was under that.


    This is assuming that the standard rates of SDLT apply; so that at the date of completion of the purchase this was your only property in the world and you did not have another one "counting against" you.
  • noh
    noh Posts: 5,794
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    nkomp18 wrote: »
    The higher rate laws back in April did affect me because at the time I owned a property and exchanged on a second one. It was because of the fact that the law was retrospective that I was forced to sell my other property, even though I exchanged 2 months before the law was introduced.

    By the time of completion I had already sold my other property and this was my only property in the UK and I paid 16k stamp duty in August, which from what I understand wouldn't apply today

    At completion did you own property anywhere else outside of the UK?
  • Tom99
    Tom99 Posts: 5,371
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    nkomp18 wrote: »
    Property is just short of £500,000.

    Is 16k just about right then? And wouldn't it be zero had I completed today instead of August?


    [FONT=Verdana, sans-serif]Normal stamp duty, not an additional property and not a FTB on £500,000 in August 2018 and now:[/FONT]
    [FONT=Verdana, sans-serif]£125,000 to £250,000 @ 2% = £2,500[/FONT]
    [FONT=Verdana, sans-serif]£250,000 to £500,000 @ 5% = £12,500[/FONT]
    [FONT=Verdana, sans-serif]Total £15,000[/FONT]
    [FONT=Verdana, sans-serif]You are not due a refund because of any change in the budget because you are not the FTB of a shared ownership property.[/FONT]
    [FONT=Verdana, sans-serif]Adjust the above formula for your price of a bit less than £500,000 then look at your completion statement for the exact amount paid in stamp duty. Don't include any of your solicitor's fees for filing the stamp duty return.[/FONT]
    [FONT=Verdana, sans-serif]If you still think you overpaid contact your solicitor.[/FONT]
  • nkomp18
    nkomp18 Posts: 193
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    Alright, thanks.

    I didn't own property anywhere else in the world either. So would I have paid zero if I had completed today instead of August?
  • Tom99
    Tom99 Posts: 5,371
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    nkomp18 wrote: »
    Alright, thanks.

    I didn't own property anywhere else in the world either. So would I have paid zero if I had completed today instead of August?
    [FONT=Verdana, sans-serif]No you would not have paid zero, why do you keep thinking that?[/FONT]
    [FONT=Verdana, sans-serif]On £500,000 you would have paid £15,000 in August and £15,000 now, no change.[/FONT]
  • sheramber
    sheramber Posts: 18,869
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    nkomp18 wrote: »
    Alright, thanks.

    I didn't own property anywhere else in the world either. So would I have paid zero if I had completed today instead of August?


    But you had previously owned one abroad so you were not and are not a first time buyer. That term applies to someone who has not previously owned a dwelling any where in the world.
    The fact that you sold it before completion on your house did not make you a first time buyer.

    It does ,however, mean that you did not have to pay the additional 3% stamp duty for owning a second home.

    You did still need to pay the ordinary stamp duty.
  • FYI. A FTB is a person that has NEVER bought a property in England and Wales. In addition to that, a couple for example where one is a FTB and another is not will not get the FTB reductions is my understanding but check with your mortgage advisor to be 100% certain.

    Stm duty increases have never been retrospective.
  • Tom99
    Tom99 Posts: 5,371
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    edited 11 November 2018 at 1:47PM
    FYI. A FTB is a person that has NEVER [STRIKE]bought[/STRIKE] owned a [STRIKE]property[/STRIKE] dwelling in [STRIKE]England and Wales[/STRIKE] the world. In addition to that, a couple for example where one is a FTB and another is not will not get the FTB reductions is my understanding but check with your mortgage advisor to be 100% certain.

    Stm duty increases have never been retrospective.
    [FONT=Verdana, sans-serif]The budget introduced FTB relief for shared ownership purchases where the purchaser elects to pay stamp duty only on the price paid for the share they are first buying.[/FONT]
    [FONT=Verdana, sans-serif]This was retrospective back to November 2017.[/FONT]
  • nkomp18
    nkomp18 Posts: 193
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    Okay thank you guys
  • sheramber
    sheramber Posts: 18,869
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    FYI. A FTB is a person that has NEVER bought a property in England and Wales. In addition to that, a couple for example where one is a FTB and another is not will not get the FTB reductions is my understanding but check with your mortgage advisor to be 100% certain.

    Stm duty increases have never been retrospective.

    See post 9 for the official definition of a first time buyer
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