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Original poster

Stamp duty - help!

23 replies

TTM123 · 13/09/2023 17:15

Posted here for traffic sorry!
My partner is a first time buyer, I am not. We are about to complete on a purchase of a house we are buying jointly. I always thought that because I am not a first time buyer we would have to pay stamp duty. We had our completion statement through from the solicitor and the stamp duty was priced at £0. Looked online and there is conflicting information. Some sites say you do and some say you don’t! Purchase price is under £250,000. I was also told by a previous mortgage advisor that you do in fact need to pay stamp duty last year when we looked at a different property.. And that property was also under the £250,000 threshold.
Can anyone help!?

OP posts:
muddyford · 13/09/2023 17:23

I don't think anyone pays it at that price level. But willing to be corrected.

muddyford · 13/09/2023 17:23

I don't think anyone pays it at that price level. But willing to be corrected.

Icanseeahousementionedfrommywindow · 13/09/2023 17:24

Do you currently own another property?

MinnieMouse0 · 13/09/2023 17:25

SDLT only applies to residential properties over £250,000 (if it’s your only property).

Original poster
TTM123 · 13/09/2023 17:25

Yes. Currently own another property which I will be renting out

OP posts:
Chocolatelabradorsarethebest · 13/09/2023 17:37

As the poster above linked, there is a simple gov stamp duty calculator to use. It'll show you will be liable for 3% stamp duty as you'll own more than one property so have to pay the additional rate regardless of the purchase price/if your partner is a FTB. If any party in the transaction owns another property then that means an additional 3% is liable.

You just need to make it clear to your solicitor the exact situation so they don't presume as the standard/default would be that people don't own another property.

Goodbyetoauntie · 13/09/2023 17:44

We are buying another house before selling our current one. If it was both of us buying we would pay SDLT but I bought our house and my husband is buying the next one. We'll sell the one we're in eventually but it sounds like you need to pay it.

DonnaBanana · 13/09/2023 17:44

Ah yes, if you own another property, you get stung. However, if you sell that other property within a certain time frame (I think it's 2 years?) you can get it refunded. You can thank the Tories for introducing this policy back in around 2015.

Didimum · 13/09/2023 17:46

Chocolatelabradorsarethebest · 13/09/2023 17:37

As the poster above linked, there is a simple gov stamp duty calculator to use. It'll show you will be liable for 3% stamp duty as you'll own more than one property so have to pay the additional rate regardless of the purchase price/if your partner is a FTB. If any party in the transaction owns another property then that means an additional 3% is liable.

You just need to make it clear to your solicitor the exact situation so they don't presume as the standard/default would be that people don't own another property.

This is only the case of the property she is buying isn’t intended to be her main residence.

You don’t have to pay any stamp duty on this purchase, OP.

Didimum · 13/09/2023 17:47

DonnaBanana · 13/09/2023 17:44

Ah yes, if you own another property, you get stung. However, if you sell that other property within a certain time frame (I think it's 2 years?) you can get it refunded. You can thank the Tories for introducing this policy back in around 2015.

If it replaces main residence, stamp duty still doesn’t apply.

DonnaBanana · 13/09/2023 17:57

Didimum · 13/09/2023 17:47

If it replaces main residence, stamp duty still doesn’t apply.

Show quote history

You're right but with a proviso. From the gov.uk page: "You will not pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold."

If you have not sold the other property, you still own two and are subject to the extra charge, regardless of whether you're renting it out or not. I know because I went through this very scenario.

Chocolatelabradorsarethebest · 13/09/2023 17:59

But they're not 'replacing' a main residence, OP is keeping the existing property and buying an additional one.

If OP owned a main residence and then purchased a buy to let, they'd pay stamp duty on the buy to let. If they then sold the main residence and purchased a new main residence they wouldn't pay stamp duty as they'd be swapping main residences.

But that's not what is happening here, OP is essentially just buying an additional property which means stamp duty is payable.

ActDottie · 13/09/2023 18:13

MinnieMouse0 · 13/09/2023 17:25

SDLT only applies to residential properties over £250,000 (if it’s your only property).

Edited

This was my understanding too. The threshold is now £250k came in last year (the only good thing I think Truss did as we were buying at the time and saved us £2500).

Original poster
TTM123 · 13/09/2023 19:03

So just to be clear. The property I own I currently live in. Once I purchase the new property I will live there and rent this current property out. My head is scrambled, surely the solicitor would have put a charge against stamp duty if I was to pay it? Or have they just made a huge error! Will probably have to call them tomorrow but really hope it doesn’t delay the purchase

OP posts:
pippinsleftleg · 13/09/2023 19:08

It’s an error but shouldn’t delay the purchase - they just need to re-do the statement for you and make the payment when the sale completes.

Didimum · 13/09/2023 21:30

DonnaBanana · 13/09/2023 17:57

You're right but with a proviso. From the gov.uk page: "You will not pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold."

If you have not sold the other property, you still own two and are subject to the extra charge, regardless of whether you're renting it out or not. I know because I went through this very scenario.

Show quote history

Odd. We’ve been through two house purchases, each time with an additional buy to let property. Never had the stamp duty increase. Always declared everything fully.

Icanseeahousementionedfrommywindow · 13/09/2023 22:11

Yes . You need to pay the additional stamp duty as you will own 2 homes. If you sell within 3 years you can reclaim it

It is £7,500 on £250,000
https://www.gov.uk/stamp-duty-land-tax/residential-property-rates

Stamp Duty Land Tax

You pay Stamp Duty Land Tax (SDLT) when you buy houses, flats and other land and buildings over a certain price in the UK.

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

Icanseeahousementionedfrommywindow · 13/09/2023 22:13

Didimum · 13/09/2023 21:30

Odd. We’ve been through two house purchases, each time with an additional buy to let property. Never had the stamp duty increase. Always declared everything fully.

Show quote history

Because you are selling and buying your main home.
The OP is not selling their old home- they are buying a new home.

Reachingreach · 13/09/2023 22:22

Icanseeahousementionedfrommywindow · 13/09/2023 22:11

Yes . You need to pay the additional stamp duty as you will own 2 homes. If you sell within 3 years you can reclaim it

It is £7,500 on £250,000
https://www.gov.uk/stamp-duty-land-tax/residential-property-rates

This!

Original poster
TTM123 · 13/09/2023 22:32

Ok thank you everyone. I will notify the solicitor tomorrow !

OP posts:
Lanjodjam · 13/09/2023 22:34

Goodbyetoauntie · 13/09/2023 17:44

We are buying another house before selling our current one. If it was both of us buying we would pay SDLT but I bought our house and my husband is buying the next one. We'll sell the one we're in eventually but it sounds like you need to pay it.

You need to check this with your solicitor because a married couple are classed as one unit and therefore from what you've said you'll be liable for higher sdlt rates on the purchase

Icanseeahousementionedfrommywindow · 13/09/2023 22:40

Goodbyetoauntie · 13/09/2023 17:44

We are buying another house before selling our current one. If it was both of us buying we would pay SDLT but I bought our house and my husband is buying the next one. We'll sell the one we're in eventually but it sounds like you need to pay it.

have you taken legal advice on that?

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