Higher rate sdlt? can't agree with solicitor

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    Higher rate sdlt? can't agree with solicitor

    Hi all,

    I am in the process of selling my flat and buying a house. The flat is my main residence and has been since I bought it. The new house will be my main residence once everything goes through. I am also on the deeds of my dad's house as TIC 5/50 split. although I don't live there. He does. This was from my mum's will. I have looked on HMRC website and trawled through their notes, and I think as I am changing my main residence for another main residence I should be paying the normal rate. I have even filled in their calculator stating private individual, second residence, exchanging main residence etc, and it worked out as the lower rate. My solicitor though seems to think I will have to pay the higher rate. He says he is going to double check.

    I even spoke with HMRC and they agreed with me.

    Confused - any thoughts please?

    Thanks

    W

    #2
    By the way, if I have to pay, I have to pay. I won't dispute that.

    Comment


      #3
      I think you pay, then get it refunded when you sell the other place, don't you?

      Comment


        #4
        Might also be worth checking the wording on your mum's will. Although you may have been left his 1/2 of the matrimonial home, often the wording in such cases is such that the property is owned by a trust. If so, you do not own the 50% share directly and this might remove any interpretation that you are buying an additional property.

        Comment


          #5
          JKO is right .

          If you complete on sale of your existing main residence ( flat) and show proof by council tax bills , then you can claim exemption on paying extra 3% when you complete on new house purchase.

          Alternatively, If you complete on buying the new house before you complete on sale of existing flat, then you will have to pay the extra 3% sdlt..

          But you are allowed up to 3 years to claim back that 3% sdlt after your have paid council for one year or more to prove the house has become your main residence.

          Comment


            #6
            Thanks for the responses. The half share in Dad's property was passed to me as a beneficiary of the trust in the will via DOA. It looks like I will probably end up having to cough up the higher rate then reclaim the difference. I am in a short chain so the properties in it should all be bought/sold on the same day. I've checked with HMRC, at least I don't have to pay CGT as it's my main residence. Thank God.

            Comment


              #7
              Are you sure you are on the deeds as a private individual and not in the capacity of a trustee? Usually where there’s a trust contained in a will the property only passes to a discretionary beneficiary of the trust on second death of the other owner.

              It does sound like your Mum put you down as a trustee and so are on the deeds. In which case there would be no SDLT. Unless the trustees have done something strange like putting the other half of the property into your name before second death?

              Comment

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