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Where Taxpayers and Advisers Meet

Do I incur the SDLT surcharge or not?

mjaldred
Posts:2
Joined:Mon Mar 19, 2018 2:20 pm
Do I incur the SDLT surcharge or not?

Postby mjaldred » Mon Mar 19, 2018 2:35 pm

I am looking to buy a new house (for £600k) for use as the main family residence and Let the house that we currently live in. How would the SDLT for the £600k house purchase be calculated in this scenario?

Many thanks - appreciate it.

M

SDLT Geek
Posts:232
Joined:Sun Apr 30, 2017 5:45 pm

Re: Do I incur the SDLT surcharge or not?

Postby SDLT Geek » Mon Mar 19, 2018 8:01 pm

From what you say I would expect SDLT to be calculated at the higher rates of SDLT, so £38,000. The online calculator is here: https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro

That is because it seems you do not come within the conditions for the replacement of your only or main residence. You are keeping your former home rather than fully disposing of it as required to meet the conditions. But it depends on the details; you do not say if you are married or who owns the existing home. For example if you are unmarried and your partner alone owns the existing home then you might be able to buy the new home alone and escape the 3% surcharge.

If the surcharge is due you might well be able to recover the 3% surcharge if you sell your former home within three years of buying the new one.

It is worth checking your property owning history in case that saves you. Perhaps you retained a previous home for a while when you bought the present one? Then it might matter whether you complete the purchase by 26 November 2018.


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