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

Posted: Thu May 18, 2017 7:39 pm
by regina1
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.

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

Posted: Thu May 18, 2017 9:22 pm
by bd6759
Did you own a property when you lived abroad?

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

Posted: Thu May 18, 2017 10:47 pm
by regina1
No, I rented whilst I was abroad.

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

Posted: Fri May 19, 2017 4:12 pm
by bd6759
hen you will be liable to the additional rate because you are not disposing of a residence.

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

Posted: Fri May 19, 2017 5:54 pm
by regina1
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.

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

Posted: Fri May 19, 2017 7:12 pm
by maths
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.