UK stamp duty

Old Jun 8th 2017, 2:01 pm
  #1  
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Default 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?
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Old Jun 8th 2017, 3:10 pm
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Default Re: UK stamp duty

Originally Posted by OriginalSunshine View Post
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?
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.
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Old Jun 8th 2017, 4:08 pm
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Default 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.
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Old Jun 8th 2017, 4:51 pm
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Default Re: UK stamp duty

Originally Posted by Johnnyboy11 View Post
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.
How would they know.
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Old Jun 8th 2017, 5:02 pm
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Default Re: UK stamp duty

Originally Posted by Millhouse View Post
How would they know.
They pop a tax return in the post and you have to fill it in honestly. Criminal offense if you don't.
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Old Jun 8th 2017, 8:59 pm
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Default Re: UK stamp duty

Originally Posted by Johnnyboy11 View Post
They pop a tax return in the post and you have to fill it in honestly. Criminal offense if you don't.
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.
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Old Jun 9th 2017, 5:33 am
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Default Re: UK stamp duty

Originally Posted by Millhouse View Post
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.
The rental income will have to be declared, which confirms to HMRC there is another property. An easy and obvious cross-check to make?
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Old Jun 9th 2017, 1:07 pm
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Default 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.
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Old Jun 9th 2017, 1:11 pm
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Default Re: UK stamp duty

Originally Posted by OriginalSunshine View Post
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.
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.
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Old Jun 9th 2017, 3:08 pm
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Default Re: UK stamp duty

Originally Posted by OriginalSunshine View Post
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.
I still would.
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Old Jun 11th 2017, 6:46 am
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Default Re: UK stamp duty

Originally Posted by OriginalSunshine View Post
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?
If you own a property anywhere else then your UK purchase will be subject to the higher rate of stamp duty. It's a simple as that.
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Old Jun 11th 2017, 8:13 am
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Default Re: UK stamp duty

Originally Posted by Meow View Post
If you own a property anywhere else then your UK purchase will be subject to the higher rate of stamp duty. It's a simple as that.
Here's hoping for a house price crash then 😅
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Old Jun 11th 2017, 10:34 am
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Default Re: UK stamp duty

Originally Posted by Johnnyboy11 View Post
The rental income will have to be declared, which confirms to HMRC there is another property. An easy and obvious cross-check to make?
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?
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Old Jun 11th 2017, 1:28 pm
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Default Re: UK stamp duty

Originally Posted by Shawlands View Post
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?
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.
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Old Jun 11th 2017, 1:39 pm
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Default Re: UK stamp duty

Originally Posted by OriginalSunshine View Post
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.
The law is clearly worded as the higher rate of stamp duty applies if you "own property", there is absolutely no distinction made as to what you do with the property or where it is located.

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.
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