Stamp Duty - Definition of Main Residence

[mattynics]

Hi All,

I am currently in the process of buying a family property in UK after 9 years working overseas.
I own outright 2 additional properties in the UK which have been let out during period of residence overseas.
I am not selling either of these properties as part of the current purchase but am aware that if I sell my main residence within 3 years I may able to reclaim the enhanced rate of SD paid.

Question: Will it be possible to prove that a property that I have not lived in for 9 years as my main residence? I did purchase it as a home in 2000 and lived their for 8 years prior to moving overseas to work. I am aware that CGT rules do account for 'relocation with work' I am wondering if anyone has some insight into my current situation as it will drive what re-mortgage deal I pursue (i.e. 2 year or 5 year fixed rate).

Thanks

Mattynics

[bd6759]

The CGT relief does not apply to SDLT. You will not be able to prove that a property you have not lived in for 9 years was your main residence because clearly it was not. Residence is given its ordinary meaning: it is the place where you live.

If you buy a new property before 26 November 2018, the requirement for exemption from the 3% is that you have disposed of a property that has, at some time, been your only or main residence (as long as you have not purchased a new residence in the interim). If you complete after that date, the property you dispose of must have been your residence at some point within the preceeding 3 years.

If you acquire a new residence before disposing of a property, the 3% would be repayable if you sold an old property that had been your residence at some point within the preceedings 3 years. The 28 November 2018 rule does not apply.

Have you sold an overseas property that was your residence?

[The Accounting Studio]

Agreed - there is no relief for stamp duty relating to main residence.
For CGT purposes, if you've lived in the property as your main residence at some period there will be an apportionment of PPR relief and depending on other circumstances there may be additional PPR relief that you can claim, particularly if you were to relive there as a you PPR

Have you considered the impact on CGT with respect to your residency status - I note that you have been overseas for some time?

[maths]

Depending upon the nature of the property in which you have been residing overseas it may be that on sale of that property the 3% SDLT charge may not apply to your proposed UK property purchase.

If the overseas property does not "qualify" and you purchase a residence prior to selling either of your existing UK properties then the 3% SDLT charge will apply and you will not be eligible for any refund thereof as neither of the existing UK properties will have been your residence in the 3 years prior to the new purchase.