Question Re the 3% BTL SDLT Premium

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • jghomer
    started a topic Question Re the 3% BTL SDLT Premium

    Question Re the 3% BTL SDLT Premium

    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 our main residence.

    This didn't sound right so I thought I would seek other opinions?

    Many Thanks.

  • Gordon999
    replied
    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

    Leave a comment:


  • jghomer
    replied
    Thanks. Yes we are selling our main residence and buying another. So that's good news, thank you.

    Leave a comment:


  • JamesHopeful
    replied
    You'll need to sell your existing home in order to avoid it. Details can be found online about how it works in circumstances where the sale of your existing home isn't exactly contemporaneous with the purchase of the new one. "Replacement of main residence" or some such is the term used.

    Leave a comment:

Latest Activity

Collapse

  • Maintenance payment flow of funds
    Kots
    Hi all,

    I am one of three flats and I own a share of freehold. We've setup a company to deal with the day-to-day matters such as maintenance payments and such.

    One of the freeholders, who is also a director of the company, usually arranges quotes for maintenance works and insurance...
    15-10-2019, 05:10 AM
  • Reply to Maintenance payment flow of funds
    Kots
    Thanks for your replies.

    We are tenants in common and although the initial idea was to pay funds in advance, I am not for this so the plan would be that funds are paid as they are required.

    What about HMRC, does anybody know if I'd be unable to offset these payments against...
    16-10-2019, 14:08 PM
  • Reply to Maintenance payment flow of funds
    leaseholder64
    I'm not clear as to whether the company is the actual freeholder, or you are tenants in common. In the latter case, setting up a company is an unnecessary expense, which probably cannot be fully funded from the service charges.

    Also I'm not clear as to whether any service charges are paid...
    15-10-2019, 10:09 AM
  • Reply to Maintenance payment flow of funds
    Gordon999
    It is better for the service charge money to be kept in a separate current account because the bank statement records can be made available for inspection by any leaseholder. The unspent service charge money / funds should not be mixed with a business account belonging to one of the leasehol...
    15-10-2019, 07:05 AM
  • CGT Relief for PP ?
    JimmyJ
    This relates to a property that was our family home for a number of years then which we rented out for a number of years and which we then sold. I understand about the CGT reliefs for private residence and rental periods. But when we put it on the market we were advised by the agent to a) repaint the...
    12-10-2019, 08:38 AM
  • Reply to CGT Relief for PP ?
    Gordon999
    The work ( painting rendering ) was requested by the estate agent and should be charged as a " sale preparation cost " . This cost should be treated as similar to estate agent's commission and advertising cost , and charged against the sale price ....
    12-10-2019, 21:01 PM
  • Reply to CGT Relief for PP ?
    AndrewDod
    Disagree with you on this one JP. HMRC give pretty clear examples:

    Explanation A repair to an asset restores it to what it originally had been and is normally an allowable revenue expense. For example the cost of replacing roof tiles blown off by a storm. The cost of alterations, however,...
    12-10-2019, 19:12 PM
  • Reply to CGT Relief for PP ?
    JimmyJ
    Just to clarify. It was empty at the end of the previous tenancy because the tenants didn't want to renew for a short period and I didn't want to renew for a year , so as not to compromise the sale. During the empty period I tried to let it short term but that did not happen....
    12-10-2019, 13:16 PM
  • Reply to CGT Relief for PP ?
    jpkeates
    A property remains part of a rental business until sold*, even if the last tenancy ends some time previously.
    Painting to increase the capital value can be a capital expense (or could equally be maintenance).

    *Or the landlord moves into it, converts it to a holiday let etc etc.
    12-10-2019, 12:47 PM
  • Reply to CGT Relief for PP ?
    AndrewDod
    Although painting is never a capital expense unless it is something highly unusual. Not everything is a capital expense - especially if it replaces or maintains something that was there. If the repair is something that tends to be reoccurring or could be recurring -- repair of existing appliances,...
    12-10-2019, 11:30 AM
Working...
X