It’s a stamp duty one

[Mysteriousgirl2]

Hi all,

DH and I would like to purchase a second property right now from savings. Our main residence would not be sold for another 12 months.

Where does that leave us in terms of stamp duty? Would we have to pay for an additional second home in terms of stamp duty or is there any movement on the time frame? If we say that our new house is our permanent residence (which it truly will be - will that work or not at all?)

For context: We’ve seen somewhere that we really love and can afford to purchase out of cash savings. Our house is not ready to sell (landscaping etc) but will be in 12 months. If we wait that long, our house that we want to buy will not be available and it truly is a unique opportunity. Selling our primary residence right now is really not an option.

Does anyone know the answer to this?

You'll have to pay extra stamp duty on the new house.

You can then claim back the extra you paid as long as you sell your primary residence within 3 years

We were in a similar position a couple of years ago. We had to pay the additional stamp duty but claimed it back from HMRC once we sold the original property. Our timescale wasn't as long though, only a couple of months. Not sure if that makes any difference.

Exactly as @MMorales says - you pay it and then claim back providing you sell your current home within 3 years. You need an HMRC login to do it but it’s straightforward.

I cannot remember the details so you must check but I did that bought ( and did a lot of renovations ) then moved and sold my previous house , I was about 18 months overlap , I paid an enhanced stamp duty as it was a second house then when I sold ( I believe at the time it was within 2 or 3 years ) within a certain time frame I applied to the IRS and had the extra stamp returned to me , I did have the chase the IRS it didn’t just happen , this was around 2017/1018 might have changed now though

OK thanks so much everyone. I have been tying myself up in knots trying to work out what is best.

So it seems that I have to pay the higher SD (in terms of need to initially budget for it etc) and then will be refunded it if sell within 3 years. That is so helpful everyone thank you.

Yes that's correct

But you or your Solicitor has to apply for the refund it isnt automatic