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Original poster

I don't wish to pay Second home stamp Duty surcharge. What options do I have?

56 replies

BroglieBoy · 04/08/2023 17:17

Is there any way I can avoid paying second home stamp duty?
Can I ask the solicitors to not declare that I am a second home buyer?

I am looking to buy a second home which will be my main residence. I have a buy-to-let property which I want to sell but I can't, as I am in negative equity.

I know that if I sell the first property within three years I can request for a stamp duty refund but I doubt if I can sell the property without making a huge loss within the next three years.

I am happy to take a small loss( say 20K to 30K ) and sell the first property but unfortunately, our situation is such that it will be a big loss in excess of 60K.

Thanks

OP posts:
justanothernamechangemonday · 04/08/2023 17:44

"Why do landlords get such a bad rep"...................

THIS IS WHY

Sfex · 04/08/2023 17:48

BobstarSunny · 04/08/2023 17:33

There is a way around the second home stamp duty, but it depends on your circumstances as to whether you qualify. An example of how it works:

You own a house, your partner owns a house. You move in together and live in one main residence and the second residence is rented out. You sell your main residence that you both live in and when you replace that with your new purchase, you don't pay additional stamp duty, even though you still have the second home. You have to be married/civil partners to do it. You can keep the second home.

If you are the owner of two houses then you wouldn't qualify for the main residence exemption.

I only know this because my husband and I were in the scenario I've described as we both had houses before we met each other. We got married to avoid a very high stamp duty bill (we were going to anyway, but it pushed us to do it quicker) and his mum lived (for free) in the second home.

I have no idea who advised you but that’s completely not true. Irrelevant of whether you’re married or not, if either purchaser owns another property or has more than a 30% stake in another property at the time of purchase you pay the second home surcharge.

OP - don’t listen to this. And pay your tax like the rest of us 🙄

pd339 · 04/08/2023 17:49

Just explain to the government that you’re special. I’m sure they’ll let you off.

DontBeBitterGlitter2023 · 04/08/2023 17:54

I was in this situation - I had to pay. There's no way around it. In my case I was given inheritance money to buy my second property that I then lived in so had to use this and pay the stamp duty out of the money I was using as a deposit. The BTL has now sold but not within the three years so I didn't get any money back.

Suck it up buttercup!

BobstarSunny · 04/08/2023 17:55

www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09810

This is the guidance.

calmcoco · 04/08/2023 17:56

Can I ask the solicitors to not declare that I am a second home buyer? Grin

MontyDontysLinenTrousers · 04/08/2023 18:01

I’m planning on renting a property from a BTL landlord. He’s in negative equity so really needs the money.

I don’t wish to pay rent. What options do I have?

loudbatperson · 04/08/2023 18:05

You have to pay it or not buy a second property. If you can't afford it, you can't afford the second place.

honeyandfizz · 04/08/2023 18:06

Lol.

caringcarer · 04/08/2023 18:07

You have to pay SDLT. A solicitor will not lie about this for you. No one likes paying taxes OP but if nobody paid them where would we be? Just pay up.

Bruisername · 04/08/2023 18:11

I’ve only known this work for an unmarried couple where one owned one and the other bought number two

ImNotReallySpartacus · 04/08/2023 18:12

Stamp duty only applies where you buy the property. Can you not tell your vendors you don't wish to pay, but do wish to move into their house?

Changingagai · 04/08/2023 18:15

Bruisername · 04/08/2023 18:11

I’ve only known this work for an unmarried couple where one owned one and the other bought number two

So what happens if a married couple live in a house owned by one of them and the other buys a but to let . Is the buy to let still a second home and taxable as such ?

londonmummy1966 · 04/08/2023 18:15

There is a reason why we all pay tax - it has to do with the provision of public services from schools and doctors to the army and state benefits- they all cost money and you benefit from them. Rather than taxing our earnings to oblivion (although it feels like it) the tax load is quite rightly spread across income capital and purchases. WHen I buy a bottle of wine it is a luxury and therefore I pay tax on the purchase when I buy perfume I pay tax on the purchase if I were to buy a second home I;d pay tax on the purchase. Its a way of spreading the burden of public services over the whole population rather than just those who work. Frankly anyone trying to evade paying their fair share is morally pretty reprehensible.

Mummyoflittledragon · 04/08/2023 18:32

I don’t understand. Where are you living now (I presume this is your PPR)? Will you be buying a third house or selling the one you’re currently living in? It sounds like you aren’t selling, ergo 3 houses so you will have to pay. House prices are set to fall so I don’t see how you’re going to be able to sell without making a large loss any time soon unfortunately.

Itsnotrightbutitsok · 04/08/2023 18:36

Where are you currently living?

Can you not see if you can live in the buy to let property?
You may have to change the mortgage to a normal mortgage.

You can’t not pay stamp duty and it seems silly paying it if you already own a property.

ActDottie · 04/08/2023 18:37

Lol if you’re able to buy a second home then I have no sympathy for you. It’s a privilege to be able to have two properties.

TeleTropes · 04/08/2023 18:38

I’m a tax adviser to ultra high net worth individuals. I get paid a lot of money to help people (legally) pay less tax. I had almost identical situation to you (unable to sell old property and bought new property). Unfortunately I paid the additional SDLT. There’s no legal way round it and no solicitor will help you commit tax evasion.

spitefulandbadgrammar · 04/08/2023 18:41

🎻

whirlyhead · 04/08/2023 18:44

It is possible to own a BTL in negative equity. I have several in negative equity due to cladding issues. I also have one that’s been in negative equity for 10 years now so I’m stuck with it as it’s worth less than the mortgage!

but seriously, you can’t get out of paying the additional stamp duty.

clpsmum · 04/08/2023 18:44

Don't buy a second home then

CarPour · 04/08/2023 18:46

Does anyone wish to lay stamp duty?

Tinkerbellflowers · 04/08/2023 18:53

Changingagai · 04/08/2023 18:15

So what happens if a married couple live in a house owned by one of them and the other buys a but to let . Is the buy to let still a second home and taxable as such ?

Show quote history

A married couple is considered one unit. They cannot have one home each to get out of paying higher rate SDLT

NewCracker · 04/08/2023 19:02

spitefulandbadgrammar · 04/08/2023 18:41

🎻

😂

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