UK stamp duty
#1
womble
Thread Starter
Joined: Sep 2005
Posts: 2,675
UK stamp duty
We have a property in Europe that we have not lived in for more than 10 years after moving to yet other countries, none of which are the uk.
We will find it hard to sell the property since it has a sitting tenant, unless the tenant leaves voluntarily.
When we move back to the uk, and we want to buy a house there, will we have to pay the additional stamp duty?
We will find it hard to sell the property since it has a sitting tenant, unless the tenant leaves voluntarily.
When we move back to the uk, and we want to buy a house there, will we have to pay the additional stamp duty?
#2
Onwards and Upwards!
Joined: Sep 2010
Posts: 884
Re: UK stamp duty
We have a property in Europe that we have not lived in for more than 10 years after moving to yet other countries, none of which are the uk.
We will find it hard to sell the property since it has a sitting tenant, unless the tenant leaves voluntarily.
When we move back to the uk, and we want to buy a house there, will we have to pay the additional stamp duty?
We will find it hard to sell the property since it has a sitting tenant, unless the tenant leaves voluntarily.
When we move back to the uk, and we want to buy a house there, will we have to pay the additional stamp duty?
Who has to pay the higher rate of Stamp Duty?
Once again, anybody who owns a residential property or even has a share in another residential property anywhere in the world is required to pay the higher rate of Stamp Duty – providing the share of the property ownership is valued at more than £40,000.
#3
Re: UK stamp duty
If you are selling a home and buying one in the UK, that should count as "replacing your main home", for which an exemption was granted. So long as you sell your current home within 36 months of buying you won't be liable for the extra stamp duty and can therefore claim it back.
Last edited by Pulaski; Jun 8th 2017 at 5:04 pm.
#4
Re: UK stamp duty
Yes, you'll have to cough up an extra 3%.
Who has to pay the higher rate of Stamp Duty?
Once again, anybody who owns a residential property or even has a share in another residential property anywhere in the world is required to pay the higher rate of Stamp Duty – providing the share of the property ownership is valued at more than £40,000.
Who has to pay the higher rate of Stamp Duty?
Once again, anybody who owns a residential property or even has a share in another residential property anywhere in the world is required to pay the higher rate of Stamp Duty – providing the share of the property ownership is valued at more than £40,000.
#6
Re: UK stamp duty
Not when buying a house. The stamp duty form is a different one. Although you are suppose to fill in in correctly granted but I can't see anyone doing that in this example.
#7
Onwards and Upwards!
Joined: Sep 2010
Posts: 884
Re: UK stamp duty
The rental income will have to be declared, which confirms to HMRC there is another property. An easy and obvious cross-check to make?
#8
womble
Thread Starter
Joined: Sep 2005
Posts: 2,675
Re: UK stamp duty
Thanks all. I was hoping that as our flat isn't our home and is in a different country to where we live that we could claim the UK purchase would be our main residence.
#9
Re: UK stamp duty
As I said above, you can claim the excess stamp duty back, but due to a quirk of the rules, only if you are currently living in a home you own, and sell it within 36 months. I.e. you can't claim it back if you are currently renting.
#11
Re: UK stamp duty
We have a property in Europe that we have not lived in for more than 10 years after moving to yet other countries, none of which are the uk.
We will find it hard to sell the property since it has a sitting tenant, unless the tenant leaves voluntarily.
When we move back to the uk, and we want to buy a house there, will we have to pay the additional stamp duty?
We will find it hard to sell the property since it has a sitting tenant, unless the tenant leaves voluntarily.
When we move back to the uk, and we want to buy a house there, will we have to pay the additional stamp duty?
#13
Forum Regular
Joined: May 2010
Location: Riyadh / Glasgow
Posts: 36
Re: UK stamp duty
OP - I still wouldn't pay the additional stamp duty on a purchase, particularly if the rental income could be changed to a GBP/EUR account in the UAE?
#14
womble
Thread Starter
Joined: Sep 2005
Posts: 2,675
Re: UK stamp duty
But who would actually ever cross check? considering it takes months for a simple response from HMRC, I doubt they go around cross checking tax returns.
OP - I still wouldn't pay the additional stamp duty on a purchase, particularly if the rental income could be changed to a GBP/EUR account in the UAE?
OP - I still wouldn't pay the additional stamp duty on a purchase, particularly if the rental income could be changed to a GBP/EUR account in the UAE?
So, I'm not out to cheat the tax system, but I also don't want to spend unnecessary tax either. It seems a bit weird that one cannot buy ones main residence at normal duty, and even though the rental property is clearly rented out, it still counts as the main residence for stamp duty purposes.
#15
Re: UK stamp duty
One of my Uni buddies works on statistical anomalies for HMRC. She's v intelligent and a superb coder.
So, I'm not out to cheat the tax system, but I also don't want to spend unnecessary tax either. It seems a bit weird that one cannot buy ones main residence at normal duty, and even though the rental property is clearly rented out, it still counts as the main residence for stamp duty purposes.
So, I'm not out to cheat the tax system, but I also don't want to spend unnecessary tax either. It seems a bit weird that one cannot buy ones main residence at normal duty, and even though the rental property is clearly rented out, it still counts as the main residence for stamp duty purposes.
A few minutes with Google will show you that there are a number of reports on how "unfair" the rules are, but the peculiar fact is that the way the rules were written is that you can get a refund of the excess stamp duty payment, but only if you sell another property which is your primary home.