Buying a UK property if you own a PT property
 

I own a flat in PT.

If I now buy a property in the UK, am I right in thinking that it will be classed as a second home and attract the extra 3% Stamp Duty?

And that this 3% applies to the whole sale price. So buy a £200K house and you pay the normal Stamp Duty PLUS £6,000

I fear I am right, but any input/confirmation appreciated.

Re: Buying a UK property if you own a PT property
 

There could also be the issue of cgt on your PT residence should you sell as already owning a UK home you will not qualify for the excemption when you purchase another home in the EU as your main residence..

Re: Buying a UK property if you own a PT property
 

It doesn't look as though you'd necessarily have to pay the extra tax to me though it does depend on a number of factors.

If you scroll down this link to Scenario 1, there's an example of someone who owns a flat abroad returning to the UK to buy a primary residence and the advice is that he could avoid paying the higher rate.

The HMRC Guidance Notes referred to are here https://www.gov.uk/government/upload...properties.pdf - it's the updated version of November 2016 and the section referred to is on Page 11.

Re: Buying a UK property if you own a PT property
 

A lot will depend on where you are resident, UK or Portugal, if it's Portugal then anything you buy in the UK will NOT be your primary residence.

Re: Buying a UK property if you own a PT property
 

Unfortunately you are correct that the property in the UK will be subject to the 3% surcharge as you will own 3 properties. However, if you sell your property in Portugal within 3 years, you could be due a refund.

Other considerations in addition to any UK capital gains tax is how you would report any income earned in Portugal on your UK self assessment return if you are UK tax resident.

Aman

Re: Buying a UK property if you own a PT property
 

:confused: I didn't see any mention of an existing 2nd property.

Re: Buying a UK property if you own a PT property
 

Oh ignore him, I suspect he is touting for a bit or work, he is a tax advisor.

Re: Buying a UK property if you own a PT property
 

Nigel.b owns a flat in PT and looking to buy one in the UK. Per my maths counts as 2...

Mikelincs - < snipped >

Re: Buying a UK property if you own a PT property
 

Mine, too. So how does he get to own 3 properties :confused:

Re: Buying a UK property if you own a PT property
 

good spot Red Eric. That's a typo. should say surcharge as you will own 2 properties.

Re: Buying a UK property if you own a PT property
 

So how does that square with the advice that was given in the first link I posted?

Re: Buying a UK property if you own a PT property
 

Thanks for all the advice and links. I wasn't aware of the 3-year rule at all.

My situation is a bit more complicated than I outlined in my original post (CGT an issue too). It looks as if I'll be writing that nice Mr Hammond a fat cheque or two in the next couple of years.

“‘Tis impossible to be sure of any thing but Death and Taxes.”

Re: Buying a UK property if you own a PT property
 

i'd follow the advice in the hmrc link, anything else is just opinion.

I was once told keep important documents spread over both properties, it makes it harder for the state to define which is the primary, and therefore have to accept your declaration.

I thought the 2nd home levy was only for multiple homes in the UK.

But as I said opinions are just Pi and Onions.

Paul

Re: Buying a UK property if you own a PT property
 

As a for instance, you are a Portuguese resident, have a house in Portugal and have another house in the EU and now wish to sell the EU house, is there any way you can avoid Portuguese CGT on the sale of the EU house? eg sell the house in Portugal, flip the main residence (ie no CGT) to the EU house whilst renting in Portugal? or is it that if you are resident in Portugal, your main residence can never ever be outside of Portugal even if you are renting?