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Higher rate of SDLT when property owned is not main residence?

regina1
Posts: 3
Joined: Thu May 18, 2017 6:38 pm

Higher rate of SDLT when property owned is not main residence?

Postby regina1 » Thu May 18, 2017 7:39 pm

Hi,

I am having trouble establishing what my main residence is and whether I need to pay the higher rate of SDLT.

I purchased a property in 2000 and since 2006 have not lived in this property. I have lived and worked abroad and moved back to the UK 3 years ago when I have been renting property ever since, as the property I own is too far from work for me to be able to commute.

I am now in the process of purchasing a property for me to live in that is close to work and have had a residential mortgage approved for the purchase. I am not planning to sell the current property I own.

Am I liable to pay the higher rate of SDLT?

Thanks in advance.

bd6759
Posts: 2071
Joined: Sat Feb 01, 2014 3:26 pm

Re: Higher rate of SDLT when property owned is not main residence?

Postby bd6759 » Thu May 18, 2017 9:22 pm

Did you own a property when you lived abroad?

regina1
Posts: 3
Joined: Thu May 18, 2017 6:38 pm

Re: Higher rate of SDLT when property owned is not main residence?

Postby regina1 » Thu May 18, 2017 10:47 pm

No, I rented whilst I was abroad.

bd6759
Posts: 2071
Joined: Sat Feb 01, 2014 3:26 pm

Re: Higher rate of SDLT when property owned is not main residence?

Postby bd6759 » Fri May 19, 2017 4:12 pm

hen you will be liable to the additional rate because you are not disposing of a residence.

regina1
Posts: 3
Joined: Thu May 18, 2017 6:38 pm

Re: Higher rate of SDLT when property owned is not main residence?

Postby regina1 » Fri May 19, 2017 5:54 pm

Many thanks for your reply.

So if I owned a property abroad and sold that, I would not have to pay the additional tax (asking because a friend is in a similar situation but owns a property abroad that he will sell).

Would he have to pay the additional tax and claim it back from HMRC once the property abroad has been sold?

Thanks again.

maths
Posts: 6580
Joined: Wed Aug 06, 2008 3:25 pm

Re: Higher rate of SDLT when property owned is not main residence?

Postby maths » Fri May 19, 2017 7:12 pm

A purchase of a residence after selling a property abroad which was a residence avoids the 3% SDLT charge. Buying a residence and then selling overseas residence means initially 3% charge applies and then can be refunded.


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