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Higher rate stamp duty

(13 Posts)
LadyFarnborough Thu 01-Sep-16 10:21:15

Does anyone know if the new higher rate stamp duty is applicable in this situation please?

DP's dad died a few months ago and estate is split equally between him and his sister. Probate granted and house on the market although slow to move.
We currently don't own a house together. I have a flat which has a sale going through. We live in rented.
If my flat completes and the probate house still hasn't sold, are we liable for the higher rate stamp duty on what we buy as technically DP owns another house, even though it is not our main residence?

ThroughThickAndThin01 Thu 01-Sep-16 10:25:46

It's down to the sale price you are buying st.

Not what you are selling,

specialsubject Thu 01-Sep-16 10:27:22

Op means the extra 3% on all stamp duty bands for those buying a second home. It may well apply - ask your solicitor.

ThroughThickAndThin01 Thu 01-Sep-16 10:31:01

Oh I see.

Isn't fil property still in his name?

InTheDessert Thu 01-Sep-16 10:37:04

I havnt checked this, but if memory serves, if you sell the second house in a year, you can reclaim the extra stamp duty. Might be worth investigating and checking if that's actually the case.

LadyFarnborough Thu 01-Sep-16 11:07:40

Sorry yes, the extra 3% for second homes. I'm not sure what name the house is in once probate is granted. I had read about being able to claim it back but was confused because it's not our residence. Probably one for the solicitor to answer I would think.
Thank you.

MimsyPimsy Thu 01-Sep-16 11:19:17

You should be fine, assuming your partner has inherited a 50% share (or less), and your FIL only died a few months ago. See link below, section 3.53 onwards.
Disclaimer - not a solicitor. smile

Muddle2000 Thu 01-Sep-16 11:52:09

You need to watch Increased Council tax on an empty property but do not panic. Most Councils give 6 months grace for probate/the property to sell
Of course DP and his sister are liable not you though it impacts a bit on
you .
If it does not sell then someone will need to move in after 6 months.
Cannot see any issue with Stamp Duty as it only applies to purchases.
If the deceased's estate is worth £325,000 + take professional advice
The tax you may be thinking of is Capital Gains Tax : this can be levied
when a second home is sold. See an accountant. Worth the fee

MimsyPimsy Thu 01-Sep-16 14:29:28

"Cannot see any issue with Stamp Duty as it only applies to purchases."

The OP is talking about the recent changes to stamp duty for second homes. As of 1 April this year, you have to pay an extra 3% if you're buying an additional home. As her DP now has a share in a home, OP was concerned their new home would count as his second home. There are certain exemptions, which seems to include this case, as long as the inherited property is sold within a certain time limit.

Muddle2000 Thu 01-Sep-16 15:12:58

A couple of other points;
Have you checked any insurances are still up to date? The last thing you
want is something to happen and find the insurance ran out last month?!
Also if the property is unoccupied you will need to check with the insurers.
I am sure they ill have things in place for this situation but it is far better
to inform them as one thing insurers do not like is unoccupied places.
I am sure they will be sympathetic if you are honest.
Selling the property: try to make it as saleable as possible. If you are
looking to sell to younger people then try -sorry do not want to sound harsh-to get rid of anything that makes it look old-fashioned.
Use the time to spruce it up a bit- easier said than done when you re
bereaved, of course

TheSilveryPussycat Fri 02-Sep-16 01:36:44

Is the house being sold by DP's DF's Estate, and the proceeds going into the distribution of the estate, or is the house passing to them at distribution?

NoPlanYet Fri 02-Sep-16 07:06:44

You can claim back the extra SD if the property is sold within 3 years - hopefully plenty of time to cushion this.

GinIsIn Fri 02-Sep-16 07:09:56

It's whether or not the second property will be your main residence. Also, you have 3 years for the first property to sell in which you are still entitled to a rebate. Good luck!

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