Additional stamp duty

[MrsCremuel]

We want to sell our ‘main residence’ to buy another house which we will live in. We also own half of a flat which is currently rented out.

Will be pay the additional rate on the new house? Would greatly appreciate any advice from someone in the field!

If you own another property, you will have to pay the additional rate. It depends what you mean by owning half of another flat - could you expand?

DH owns a flat with his sibling 50/50

The guidance is confusing it says you pay if ‘it will not be the only residential property worth £40,000 or more that you own (or part own) anywhere in the world’

but then:

‘Do not include anyone who will both:

• use your new property as their main home
• have sold or given away the last main home they owned before you buy your new home (or on the same day)’

This applies to me and DH.

I thought going from main residence to a new main residence didn't mean paying the additional rate as that's where you live. If you've bought the rental flat since owning your house surely that would be the nominated second property. Depends how you purchased it though I expect, not sure what half own would mean.

If you go onto gov.uk and use the sdlt calculator it will tell you whether its higher or not. It asks you if new purchase means you will own 2 or more properties, and then if the new purchase is replacing your maon residence. Should just be normal rate for that.

DH bought it years ago and lived there for 10 years, then we bought together and he lets that old flat out now. We live together in our main residence which we would sell.

Simplest solution is sell the second property too…

Yes you'll pay the additional rate I let out my former marital home and currently live in a rented house (as former marital home is a 100 miles away from where I want to live) DH and I are buying a house which will be our main residence and we've just paid the additional stamp duty. I think if you sell the house you currently live in and the flat within a certain time scale after purchase you can claim the extra stamp duty back.

If you buy a new main residence within 3 years of selling your original home than you can reclaim the tax. So therefore buying and selling a main residence at the same time the same principle would apply surely, regardless of owning a 2nd property?

@hotmeatymilk we’d love to, we need to move soon though and the sibling doesn’t want to sell. They want a long term investment. I’d rather not have a second property and would rather have a family home that better suits our needs.

Agh, looks like we won’t be moving then. We can’t afford the extra tax.

Your solicitor should be able to advise definitively, however as I'm in the same situation, in my experience the answer is no.

I have sold my main residence, and am (hopefully) completing on another house shortly. I also jointly own a separate flat with a sibling.

I had to do a declaration to my solicitor that the new property will be my main residence, and that was it. Had to do the same when I bought the property I have just sold. I've owned the flat with my sibling since 2005, so it was purchased before the additional SDLT rules came in.

No, as the new home will still be your main residence. We moved earlier in the year and didn’t pay the additional tax, just the normal rate.

No, you won’t be liable for the extra 3% stamp duty payment.

You’re not buying an additional property, you currently have 2 properties and once you sell your main residence and buy another main residence you’ll still own 2 properties. No ‘additional’ property is added.

Your solicitor will confirm.

No you don't pay the extra stamp duty on your main residence. You might if you bought before you sold your previous home, but then you can claim it back if you sell within a set period. But if you sell then move (or simultaneously) then no you don't pay it.
I own five properties have just moved and did not pay the extra tax.

That makes seems, thanks all