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Original poster

Stamp duty

11 replies

Sassybynature · 15/04/2018 09:46

I am selling my main residence in the uk and purchasing a new home which will be my main residence. I also part own a property inherited overseas with my siblings. Am I correct in saying I will not be liable for the additional 3% stamp duty on my main residence in the uk if I am replacing it for a new main residence? Even though I own a second property abroad?
Slightly confused on second property stamp duty laws. Could someone please clear this for me as I have been told I would still be liable for the additional tax. However, I have googled and to me it seems as long as I am replacing my main residence with a new main residence then I should be able to avoid the additional levy of stamp duty tax.

OP posts:
Easilyflattered · 15/04/2018 11:44

I have been in a very similar situation recently. I was advised I wasn't liable for the extra stamp duty by my solicitor because I was immediately replacing my main residence with another main residence.

Is your ownership abroad a standard ownership or is/was it a bare ownership agreement?

teaandbiscuitsforme · 15/04/2018 13:20

I don't think you're liable for the extra. The property abroad is not your main residence and won't be after the sale is complete.

We sold our main residence last year, we have a BTL and we're buying our new property now so there's been a gap of at least 6 months. We're not liable for the extra because we haven't lived in the BTL and we will be living in the new property as our main residence.

Original poster
Sassybynature · 15/04/2018 13:43

Thank you both. My property overseas is a standard ownership.
I hope you are both correct, it is also how I have interpreted google that as long as I replace my main uk residence my overseas property is not considered therefore not liable for the additional stamp duty which came into effect April of last year.

OP posts:
Easilyflattered · 15/04/2018 16:25

Agree that the new rule isn't very clear. We had a bit of a panic and made an appointment to see our solicitor because the stamp duty difference would have been a struggle to find prior to exchange.

I'm not certain on this, but I think if you sell a main residence, then go into rented accommodation, but then buy another main residence you have to pay the 3% rate at point of purchase but can claim it back from HMRC if it's within three years.

Lostinthe80s · 15/04/2018 17:35

I'm not certain on this, but I think if you sell a main residence, then go into rented accommodation, but then buy another main residence you have to pay the 3% rate at point of purchase but can claim it back from HMRC if it's within three years.

I don’t think this is the case. I’m pretty sure the rule you’re thinking of is that if you buy a new main residence but don’t sell your current main residence you must pay the extra stamp duty but can reclaim it if you sell the original main residence within three years of buying the new one.

I’m sure you’ll be ok OP.

Blankscreen · 15/04/2018 17:46

I think you might be liable. I did a course and one of the questions referred to overseas property and that triggered the additional 3% charge.

The distinction between main residence is for capital.gains tax not sdlt.

As far as I know if you own any other property anywhere then you will pay the additional tax.

RicStar · 15/04/2018 20:20

blank I am pretty sure you are wrong. If you replace your main residence you are not liable for the additional stamp. If you replace a second home / btl or buy a new btl you are liable - whether your overseas home is a main residence or not. The law was written in the slightly odd way to avoid folks who say inherited a property from suddenly being trapped in their current home due to the additional charge.

stringchild · 16/04/2018 14:16

recently done this, and wasn't liable - i did have an overlap of purchasing the new before the old sold too, then had to pay higher and claim back (which was a remarkably easy on line process), but the overseas property didn't affect matters

pepperpop · 16/04/2018 18:25

I'm a conveyancing solicitor...

If you sell your main residence and buy a new main residence at the same time, you don't pay the higher rate even if you own another house.

If you buy a new main residence before selling your current main residence, you pay the higher rate. You can then claim the difference between normal rate stamp duty and higher rate stamp duty back from HMRC when you sell, as long as you sell within 3 years of the date of your purchase. You have to claim it back within 3 months of the date of your sale.

Hope this helps Smile

Original poster
Sassybynature · 16/04/2018 21:38

Phew, so I was initially given the wrong information by someone. Thank you everyone for responding. I can now do my sums without the worry of a extra 3% tax on top.

OP posts:
user1487194234 · 16/04/2018 22:08

Agree with po You are not liable
NB if in Scotland it's 18 months to sell your previous house

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