Stamp Duty - Confision
09 May 2016, 02:40 PM
#1
Stamp Duty - Confision
Can someone please explain to me..
I own a home at the moment, and i will be converting this to let to buy, and purchase another house costing £400k - and move into this.
Will i still need to pay the stamp duty? is this 3% or 8%
Found this - but i am little confused still..
http://hoa.org.uk/2016/03/stamp-duty...ions-answered/
I own a home at the moment, and i will be converting this to let to buy, and purchase another house costing £400k - and move into this.
Will i still need to pay the stamp duty? is this 3% or 8%
Found this - but i am little confused still..
http://hoa.org.uk/2016/03/stamp-duty...ions-answered/
09 May 2016, 04:16 PM
#2
Looks like your situation is covered by this example:
The stamp duty rate on your new 400K pad will be 8% to start with, but you can claim back 3% if you sell up the old place within 3 years.
What if the home I’m buying is my main residence or I don’t sell my previous home straight away?
If the home you are buying is replacing your main residence, then the additional 3% stamp duty will not apply.
However, if you move out of your main residence but keep it and buy another main residence, you will have to pay the 3% stamp duty surcharge initially.
If you sell the first home within 3 years of completing on the purchase of the new home, HMRC will make a full refund. But you need to pay the 3% surcharge upfront and on completion.
If the home you are buying is replacing your main residence, then the additional 3% stamp duty will not apply.
However, if you move out of your main residence but keep it and buy another main residence, you will have to pay the 3% stamp duty surcharge initially.
If you sell the first home within 3 years of completing on the purchase of the new home, HMRC will make a full refund. But you need to pay the 3% surcharge upfront and on completion.
09 May 2016, 06:09 PM
#4
It's talking about the new 3% buy-to-let/second-home surcharge, not the total amount of stamp duty you'll have to pay:
"you will have to pay the 3% stamp duty surcharge initially"
Yep, it is, and the fact it's effectively a form a double taxation makes it all the more scandalous. I suppose we have to count ourselves lucky it's not charged at the same rate as VAT, although it's certainly heading that way.
"you will have to pay the 3% stamp duty surcharge initially"
Yep, it is, and the fact it's effectively a form a double taxation makes it all the more scandalous. I suppose we have to count ourselves lucky it's not charged at the same rate as VAT, although it's certainly heading that way.
10 May 2016, 02:08 PM
#5
Found this..
https://www.tax.service.gov.uk/calcu...nd-tax/#/intro
Have to pay £22,000 on a £400,000 house.
If i sell the old house within 3 years i can claim £12,000 back.
Current House, if i let it out...
The rental income after 3 years is near £30k after paying the mortgage if i let it out (maybe little more) as its in London.
So makes sense to hold on to it for investment purposes..
https://www.tax.service.gov.uk/calcu...nd-tax/#/intro
Have to pay £22,000 on a £400,000 house.
If i sell the old house within 3 years i can claim £12,000 back.
Current House, if i let it out...
The rental income after 3 years is near £30k after paying the mortgage if i let it out (maybe little more) as its in London.
So makes sense to hold on to it for investment purposes..
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