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Where Taxpayers and Advisers Meet

Higher Rate SDLT or Not

ace
Posts:8
Joined:Wed Oct 13, 2010 9:19 pm
Higher Rate SDLT or Not

Postby ace » Mon Aug 13, 2018 7:17 pm

Hello,

My wife and I live with family and its been this way for 15+years. Our names are not on the title deeds of the property we currently live in, however, we have treated this as our main residence as evidenced by electoral roll, doctors address, car insurance, kids school etc. My wife and I, would like to buy a house together as our main residence for around £650k. We do have some properties in our names that are let out (value greater than £40k each) and have not stayed in these let out properties ourselves. Advice to date from mortgage brokers and solicitors varies on whether we have to pay the additional 3% SDLT on the purchase of our new home. Appreciate any clarity you can provide. Thank you in advance.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Higher Rate SDLT or Not

Postby maths » Mon Aug 13, 2018 8:44 pm

Payable. Assume you have never owned a property in which you have lived.

ace
Posts:8
Joined:Wed Oct 13, 2010 9:19 pm

Re: Higher Rate SDLT or Not

Postby ace » Mon Aug 13, 2018 9:14 pm

Hi Maths,

Thanks for the reply and clarity. Assumption is correct. Would you be kind enough to provide a brief rationale?

Thank You

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Higher Rate SDLT or Not

Postby bd6759 » Mon Aug 13, 2018 11:00 pm

On the day of the transaction:

a) you will own more than one property

b) you have not disposed of a material interest in a property that was you main residence.

If you held a material interest in your main residnece and disposed of it, you would be fine.

Sch 4ZA FA 2003 … http://www.legislation.gov.uk/ukpga/2016/24/section/128


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