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Where Taxpayers and Advisers Meet

main residence replacement

iangrech
Posts:2
Joined:Tue Jan 29, 2019 2:31 pm
main residence replacement

Postby iangrech » Tue Jan 29, 2019 2:46 pm

We have purchased a property with vacant possession that we intended to be our main residence. However, it was tenanted and following purchase/completion It seems they have been unable to move out and are saying they just need a couple of months to arrange it. Obviously we are unhappy about this but since we ourselves are renting a place we dont have to move in straight away. My question is should i inform hmrc about this? am i liable for the 3% surcharge?
I have read the guidance which states it is all about the intention and we certainly intend to live here as soon as we can. thanks

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: main residence replacement

Postby pawncob » Wed Jan 30, 2019 12:48 pm

Yes you're liable to the surcharge, but can reclaim it if you sell your previous home within 3 years.(assuming you already have a property which is your PPR. If it's your first purchase different (discounted) rates apply.
https://www.gov.uk/stamp-duty-land-tax/residential-property-rates
With a pinch of salt take what I say, but don't exceed your RDA

someone
Posts:692
Joined:Mon Feb 13, 2017 10:09 am

Re: main residence replacement

Postby someone » Thu Jan 31, 2019 12:33 pm

It's not clear whether you've already sold your main residence (if not then you should have paid the 3% anyway) nor whether you own another property.

The 3% surcharge is due if you buy a *second* property AND that property isn't intended to replace a previously sold main residence.

I'm loath to disagree with pawncob (who knows much more than me) but ISTM that buying a property with vacant possession that you only can't occupy as your main residence because the seller didn"t supply it with vacant possession doesn't affect your intentions provided you occupy it ASAP.

Also, should the 3% be due and you've already sold your main residence then you won't get it back on occupation - so you need to talk to your solicitor as it appears the seller has breached their contract with you to supply vacant possession. I have no idea if you can sue them for your loss.

Too late for you now, but when I bought a property in similar circumstances, my solicitor told me to visit to check it really was empty before we completed.

iangrech
Posts:2
Joined:Tue Jan 29, 2019 2:31 pm

Re: main residence replacement

Postby iangrech » Thu Jan 31, 2019 4:47 pm

Thank you for the replies, apologies for not being more clear.
We sold our main residence a year ago and this is a replacement, we one other property. It was sold as vacant possession but unfortunately I wasn't in a position to check the week before completion. We are pushing for them to vacate asap, we dont really want the hassle of going down the legal route if its only going to be for a short period.


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