Stamp duty
Nov 15th 2023, 5:51 pm
#1
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Stamp duty
Hello! Looking for some advice about stamp duty. I am a British citizen who moved back to the UK a year ago after living in Canada for 8 years. My Canadian partner moved back with me on a family visa.
We kept our house (jointly purchased in 2017) in Canada and are renting it out to tenants. We moved into a flat in the UK that was gifted to only me in 2015.
We are looking to buy a home in the UK and sell the flat. So technically our main residence is here in the UK and we will be selling that to purchase another. However, we will still have an additional property but it would not be our main one, being rented instead. Do we need to pay the higher stamp duty? My partner completed the gov.uk test and believes we wouldn't need to as our main residence is now in the UK but I am skeptical. Any advice would be appreciated! Thank you
We kept our house (jointly purchased in 2017) in Canada and are renting it out to tenants. We moved into a flat in the UK that was gifted to only me in 2015.
We are looking to buy a home in the UK and sell the flat. So technically our main residence is here in the UK and we will be selling that to purchase another. However, we will still have an additional property but it would not be our main one, being rented instead. Do we need to pay the higher stamp duty? My partner completed the gov.uk test and believes we wouldn't need to as our main residence is now in the UK but I am skeptical. Any advice would be appreciated! Thank you
Nov 15th 2023, 6:22 pm
#2
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Re: Stamp duty
Hello! Looking for some advice about stamp duty. I am a British citizen who moved back to the UK a year ago after living in Canada for 8 years. My Canadian partner moved back with me on a family visa.
We kept our house (jointly purchased in 2017) in Canada and are renting it out to tenants. We moved into a flat in the UK that was gifted to only me in 2015.
We are looking to buy a home in the UK and sell the flat. So technically our main residence is here in the UK and we will be selling that to purchase another. However, we will still have an additional property but it would not be our main one, being rented instead. Do we need to pay the higher stamp duty? My partner completed the gov.uk test and believes we wouldn't need to as our main residence is now in the UK but I am skeptical. Any advice would be appreciated! Thank you
We kept our house (jointly purchased in 2017) in Canada and are renting it out to tenants. We moved into a flat in the UK that was gifted to only me in 2015.
We are looking to buy a home in the UK and sell the flat. So technically our main residence is here in the UK and we will be selling that to purchase another. However, we will still have an additional property but it would not be our main one, being rented instead. Do we need to pay the higher stamp duty? My partner completed the gov.uk test and believes we wouldn't need to as our main residence is now in the UK but I am skeptical. Any advice would be appreciated! Thank you
HTH.
Nov 15th 2023, 6:45 pm
#3
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Re: Stamp duty
I agree with your partner.
Your main residence is the flat. So if you sell it and replace it with a new main residence, you’ll not be liable to the extra stamp duty.
If you want to be doubly sure, you could always post the question on the HMRC Community forum.
Your main residence is the flat. So if you sell it and replace it with a new main residence, you’ll not be liable to the extra stamp duty.
If you want to be doubly sure, you could always post the question on the HMRC Community forum.
Nov 15th 2023, 8:03 pm
#4
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Re: Stamp duty
Assuming the property in Canada is worth more than £40k, then yes, you'll need to pay the higher rate. https://www.gov.uk/guidance/stamp-du...ntial-property
HTH.
HTH.
Owning another property, even one overseas, will, I think, attract the higher rate of stamp duty.
Nov 15th 2023, 10:09 pm
#5
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Re: Stamp duty
They already own a property in Canada too, that's what will trigger the higher rate.
Last edited by christmasoompa; Nov 15th 2023 at 10:13 pm.
Nov 16th 2023, 1:50 pm
#6
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Re: Stamp duty
Owning another property - anywhere in the world - doesn’t necessarily trigger the higher rate.
All that matters is whether you’re replacing one main residence with a different one.
Their main residence is the flat they’ve been living in for the past year.
They are now planning to sell that and buy a new main residence. So - in my view - they will pay the lower-rate stamp duty.
I have 2 rental properties in the UK.
I also own a flat in France which is our main residence.
If I sell this and buy another main residence in the UK, I will not be liable to the higher-rate stamp duty. Because I will be replacing one main residence with another.
The fact that I own other properties is irrelevant.
All that matters is whether you’re replacing one main residence with a different one.
Their main residence is the flat they’ve been living in for the past year.
They are now planning to sell that and buy a new main residence. So - in my view - they will pay the lower-rate stamp duty.
I have 2 rental properties in the UK.
I also own a flat in France which is our main residence.
If I sell this and buy another main residence in the UK, I will not be liable to the higher-rate stamp duty. Because I will be replacing one main residence with another.
The fact that I own other properties is irrelevant.
Nov 16th 2023, 3:20 pm
#8
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Joined: Aug 2013
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Re: Stamp duty
Owning another property - anywhere in the world - doesn’t necessarily trigger the higher rate.
All that matters is whether you’re replacing one main residence with a different one.
Their main residence is the flat they’ve been living in for the past year.
They are now planning to sell that and buy a new main residence. So - in my view - they will pay the lower-rate stamp duty.
I have 2 rental properties in the UK.
I also own a flat in France which is our main residence.
If I sell this and buy another main residence in the UK, I will not be liable to the higher-rate stamp duty. Because I will be replacing one main residence with another.
The fact that I own other properties is irrelevant.
All that matters is whether you’re replacing one main residence with a different one.
Their main residence is the flat they’ve been living in for the past year.
They are now planning to sell that and buy a new main residence. So - in my view - they will pay the lower-rate stamp duty.
I have 2 rental properties in the UK.
I also own a flat in France which is our main residence.
If I sell this and buy another main residence in the UK, I will not be liable to the higher-rate stamp duty. Because I will be replacing one main residence with another.
The fact that I own other properties is irrelevant.
ETA
I have done a bit more digging and am pretty sure that you are correct.
Last edited by durham_lad; Nov 16th 2023 at 3:31 pm.
Nov 17th 2023, 8:34 pm
#9
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Joined: Dec 2008
Posts: 525
Re: Stamp duty
https://www.gov.uk/stamp-duty-land-t...property-rates
If you’re replacing your main residence
You will not pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold.
If you have not sold your main residence on the day you complete your new purchase you’ll have to pay higher rates. This is because you own 2 properties.
You can apply for a refund if you sell your previous main home within 36 months.
Higher rates for additional properties
You’ll usually have to pay 3% on top of SDLT rates if buying a new residential property means you’ll own more than one.If you’re replacing your main residence
You will not pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold.
If you have not sold your main residence on the day you complete your new purchase you’ll have to pay higher rates. This is because you own 2 properties.
You can apply for a refund if you sell your previous main home within 36 months.
