Comfused about stamp duty.

[ifowaa]

I am single and own my own home.
I want to buy a new house, I want room to extend and a south-facing garden.
My current house is worth about £350,000 and so is the house I want to buy.
The complication is that I inherited a few small properties a few years ago, but only own 20% share - probably all together worth £100,000 (my share) the properties can't be sold for several years/decades as they house relatives living there as life-long tenants and not paying rent.

Do I need to pay the higher rate of stamp duty as I own shares in properties which are not my main residence?

I am so confused reading about it online.

Just to clarify, I would be selling my main residence worth £350,000 and buying a new main residence worth £350,000 and living there.

Yes you would. If your name is on another title deed then you need to pay the higher rate of stamp duty. You could only get a refund of it if you sell the additional properties within a set period (about 18 months I think)

If you are selling your main residence and buying a new main residence you don't need to pay higher rate. (Disclaimer: this was the case for us 2 years ago and I don't think it has changed). Presumably you can prove it will be your main residence.

Hey, I am not qualified yet neither do I want to practice in property law but my understanding is that you pay stamp duty proportioned to your new home purchase only, so basically all that matters is the purchase price of your new home.

Money Advice Service have a useful calculator https://www.moneyadviceservice.org.uk/en/tools/house-buying/stamp-duty-calculator

Again, disclaimed I may well be wrong so anyone feel free to correct me. The best advice will come from conveyancer/property solicitor.

so you are selling your main/home residence I would say that you pay the straightforward figure not the additional 3% which you would pay (a proportion of) if the rental non residence part owned inherited property was sold

Adding to my previous post as there seems to be conflicting information. 2 years ago we sold our 2 bed flat and bought a house. We also own a 1 bed flat. We paid the normal stamp duty rate, not the additional 3% (and obviously we didn't get first time buyers exemption). It was clear our 2 bed flat was our home and the house would be our new home.

Oops I need to delete my previous post (but don't know how!), I have reread and understand your question fully now and not sure of the answer x

If you're selling your existing home, and buying a new home, I don't think you'll have to pay the increased stamp duty.

My name isn't actually on the title deeds on the other properties - due to probate delays - they still belong to my deceased relative.

I'm glad I'm not the only one confused by the rule:
is the basic premise that if the new property is going to be your main residence then it's not viewed as a second home/investment property.
therefore in my situation I don't pay the higher rate?

You own an interest in a property worth more than £40,000, so your inherited share counts as a property.

So when you sell your current home and buy your new one, you will still own 2 properties. Currently you can reclaim the higher rate SDLT if one of those properties is sold within a set period afterwards but that looks unlikely from what you say.

No you don’t have to pay the higher rate, I have done this

Conflicting opinions! Guidance seems clear to me - if you're buying on your own and are not married, you're selling your main residence and buying a new house to live in, you pay the lower rate. www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

But, I think you're going to need to talk to a solicitor to get the final word.

That's where I looked to double-check @Flowersforpowers. I think OP's inherited share falls under the description in the second section.

If you are selling your main residence and replacing it with a main residence then you do not pay the higher rate of stamp duty- you would just pay the normal amount.

But OP's share of the property she has inherited still counts as a "property" so she would own 2. It's the same as the first time buyer exemption- you can't claim it if you've inherited a share in a property.

Yes Minnie but they are already mine (the inherited shares in property) and therefore exchanging my main residence for another main residence isn't increasing my 'property portfolio' - I think that means I will just pay the lower amount.
I think my broker knows the rules, when I speak to her I'll let you all know what the rules are because it seems very confusing from the range of answers in this thread.

If you are replacing your main residence, ie. selling the house you live in and buying another one on the same day that you intend to live in, then you won't have to pay the higher rate. It doesn't matter how many other properties you own.

If you are buying the new house first, to be your main residence, you'll have to pay the higher rate but can claim the difference between normal rate and higher rate back when you sell your previous main residence, as long as you sell it within 3 years of buying your new main residence.

When you instruct a solicitor to deal with your house sale and purchase, they should be able to advise you.

Thanks @MillieMoodle your first paragraph covers my situation. I just wanted to know before I started looking and marketing my house (which obviously I can't do at the moment anyway) so I could factor that into my cost as I can't afford a very big step up, I'd just like to buy somewhere with potential to extend (which my current house doesn't to have) so in the future I can extend to a slightly larger place.