Stamp Duty queries

  • Filter
  • Time
  • Show
Clear All
new posts

    Stamp Duty queries

    Hi there,

    I am currently having one residential property. I am buying a residential property and making the current residential property as let to buy.

    Do I have to pay 3% additional surcharge?

    If my new residential purchase price is £452,000, please help me to calculate the Stamp Duty.

    Thanks and regards.

    I regret to say that you are liable for the premium on SDLT and based on a purchase price of £452000 that would amount to £26160. This is an extortionate amounted Pay but one which for the present is helping fill the tax coffers.


      Hello Loanarranger,

      Thanks for your prompt reply. However, I found the following on the below link:

      "You’ll usually have to pay 3% on top of the normal SDLT rates if buying a new residential property means you’ll own more than one."

      But as I am converting my current residential property into a buy to let, will I be still considered to have two residential property at the end of the transaction?

      Thanks in advance.


        There is sometimes confusion about this. If you keep your main residence I am pretty sure you will have to pay the 3% extra. If you have other properties that are not your main residence, but sell your main residence within 3 years, I am being lead to believe you would get a refund!!


          Originally posted by abc777uu View Post
          But as I am converting my current residential property into a buy to let, will I be still considered to have two residential property at the end of the transaction?
          I can't speak for loanarranger, but yes.

          You have a property you live in and buy another.

          If you sell the first one as you buy the second (standard chain scenario), you only have one property at the end of the day of completion, so no second property surcharge is owe.

          You can buy another property to live in without selling the first, when you move into it you would have two properties.
          So the second one is subject to +3% surcharge.
          If you sell the first property within (I think 18 months - the 3 years may have been a transitional arrangement, I forget), you can reclaim the 3% surcharge as you only have one property and the second was simply a timing issue.

          You will continue to have two properties and will not be in a position to reclaim the surcharge.

          Which is exactly the point of the tax - to make multi property ownership less attractive and increase the tax take.
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


            Thanks all..much appreciated.


              I didn't even have to open my mouth in clarification , thanks JPkeates , cheque in the post.


                Yes i am in a similar position as i own investment properties in uk but no main residence, i m now looking to buy a house to live in. Therefore i have to pay the higher stamp duty, its painful thinking about it at first but after a while you just get used to it.

                you can always let it for a while to recoup the outlay.


                  Poolboy, No you can’t, if you are applying for a residential mortgage , it is on the strict understanding that you live in it and definitely do not let it out to recoup the SDLT, that is fraud by virtue of procuring a mortgage by uttering a false declaration. If circumstances dice that you have to move away for legitimate reasons a lender may consider a Consent to Let but the reasons have to be plausible and not perceived as trying to circumvent the processes for which we are all expected to abide with even though the premium over normal SDLT is in my honest opinion iniquitous.


                  Latest Activity


                  • Adding wife to BTL property
                    In 2005 I bought a BTL property in London with an outstanding mortgage of ~£150,000 and a current market value of ~ £500,000. The apartment has never been lived in by me and my name alone is on the title deeds and mortgage.

                    I would like to add my wife to the property, either 1) title...
                    18-02-2019, 17:37 PM
                  • Reply to Adding wife to BTL property
                    I always believed that a DOT was used because normal ownership of tenant in common property was automatically registered as 50/50 split when the true ownership may have been different i.e wife has put more money in or such. Surely to transfer a percentage to your wife and then use a DOT to claim that...
                    19-02-2019, 15:24 PM
                  • Reply to Adding wife to BTL property
                    Where property is owned as tenancy in common, the default presumption is that each tenant owns the property in equal proportions.
                    But that doesn't have to be the case, the ownership can be shared in specified proportions, so 1% and 99%, or 60%:40% are possible.

                    That split would normally...
                    19-02-2019, 13:51 PM
                  • Reply to Adding wife to BTL property
                    I think the solicitor may arrange a sale contract of 25% share in property from H ( seller ) to W ( Buyer ) at Nil price . but the Tax Office will say the consideration is 25% of mortgage loan for calculation the sdlt to pay.

                    After the property is registered under the names of H&W (...
                    19-02-2019, 13:30 PM
                  • Reply to Adding wife to BTL property
                    Is this possible (genuine question)? I understand the tenants in common bit but I thought you then needed a declaration of trust in order to change the proportions....
                    19-02-2019, 13:04 PM
                  • Reply to Adding wife to BTL property
                    Option 2 is not available because you have a mortgage loan ( in sole name ) secured by the mortgage lender taking a charge on the property title. This means any change to the property title requires consent by the mortgage lender.

                    You can transfer by gifting a 25% share in the property...
                    19-02-2019, 11:55 AM
                  • Reply to Adding wife to BTL property
                    Tenants in common - which allows each person to own a defined share of a property.
                    You can transfer 1% of a property to someone (at the value of 1% of the total property value at the time).

                    Totally agree about the mortgage lender....
                    19-02-2019, 10:44 AM
                  • Reply to Adding wife to BTL property
                    This intrigues me, how do you transfer a small part of title? I know you can split beneficial ownership of jointly held property but how do you transfer a small part of title prior to changing beneficial ownership.

                    I'm not sure your mortgage company will allow a transfer of title only,...
                    19-02-2019, 10:41 AM
                  • Reply to Adding wife to BTL property
                    You can transfer a small part of the property to your wife, not necessarily half.
                    That can minimise the SDLT (or remove it altogether).

                    Then you use a deed of trust to adjust the beneficial ownership to the desired percentage (notified to HMRC using Form 17).

                    It's something...
                    19-02-2019, 09:52 AM
                  • Trying to move away from using an accountant, and handle my own tax return.
                    Dear all,
                    I'm a landlord with one property.

                    I'm paying an accountant about £600 p/a to take care of my self-assessment tax return. I would like to do it myself and save some cash.

                    I'm sure I could get most of it right, but I'm anxious not to draw the gaze of inland revenue...
                    18-02-2019, 17:24 PM