Stamp Duty queries

Collapse
X
  • 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.

    #2
    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.

    Comment


      #3
      Hello Loanarranger,

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

      https://www.gov.uk/stamp-duty-land-t...property-rates

      "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.

      Comment


        #4
        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!!

        Comment


          #5
          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).

          Comment


            #6
            Thanks all..much appreciated.

            Comment


              #7
              I didn't even have to open my mouth in clarification , thanks JPkeates , cheque in the post.

              Comment


                #8
                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.

                Comment


                  #9
                  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.

                  Comment

                  Latest Activity

                  Collapse

                  • Deed of trust to Ltd company
                    Vinkris
                    Hello All,

                    I’m new to this site/forum so apologies in advance if this question has been asked before.
                    i own my current property 100% and it’s on a personal mortgage. Now I want to move from the property due to personal reasons and want to let it out. I want to do BTL via company...
                    20-05-2019, 17:11 PM
                  • Reply to Deed of trust to Ltd company
                    Gordon999
                    If you don't want to break the existing mortgage loan, then you certainly cannot move to a new BTL mortgage....
                    24-05-2019, 12:15 PM
                  • Capital gains tax and tax credits
                    alice123
                    hi i have recently sold a rental property and have been working out my tax liability for the GCT which works out at 2,500 tax to pay and im a non tax payer and this just takes me over the threshold - ok for tax credits pruposed do i need to declare the captial gain as its a capital gain and not income...
                    17-05-2019, 14:29 PM
                  • Reply to Capital gains tax and tax credits
                    Gordon999
                    For any owner occupied property ( and never rented out ) , there is no tax to pay on the capital gain.
                    24-05-2019, 12:05 PM
                  • Question Re the 3% BTL SDLT Premium
                    jghomer
                    Hi All

                    Both myself and my wife each have a number of BTL props in our sole names.

                    We also jointly own our marital home.

                    We want to move house to something bigger, and have been advised that the 3% SDLT Penalty will sting us on the new purchase even though it is...
                    22-05-2019, 18:14 PM
                  • Reply to Question Re the 3% BTL SDLT Premium
                    Gordon999
                    If you buy a new home before you have sold the present home, you should expect to pay the extra 3% sdlt.

                    But current rules, you are given 36 months grace period to sell the old home and claim back the extra 3% paid on the new home
                    24-05-2019, 11:59 AM
                  • Higher tax bracket
                    someonenew
                    I will be a brand new landlord soon and wasn't sure if what I'm doing is correct (best for tax reasons)

                    I have two properties

                    1) Bought Feb 2017 (£185,000 24% equity) residential for me to live in
                    2) Bought May 2019 (£150,000 25% equity) buy to let

                    The...
                    21-05-2019, 15:10 PM
                  • Reply to Higher tax bracket
                    Gordon999
                    At present , you have one residential property which is your home and no rental income to report.

                    You have just bought a BTL in May 2019 ( this month) so you will be reporting the rental profit ( 2019-2020 ) some time during April - Oct next year . Submit a tax return your self or...
                    24-05-2019, 11:52 AM
                  • Reply to Higher tax bracket
                    someonenew
                    Thanks for the info guys. I guess speaking with an accountant is the next step. Have any of you used anyone from Manchester that you would recommend?
                    23-05-2019, 11:04 AM
                  • Reply to Question Re the 3% BTL SDLT Premium
                    jghomer
                    Thanks. Yes we are selling our main residence and buying another. So that's good news, thank you.
                    23-05-2019, 10:29 AM
                  Working...
                  X