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Where Taxpayers and Advisers Meet

Overseas usufruct and Stamp Duty

Sonmi451
Posts:2
Joined:Mon Jul 20, 2020 3:20 pm
Overseas usufruct and Stamp Duty

Postby Sonmi451 » Mon Jul 20, 2020 3:39 pm

Hello everyone!

First time post.

My wife and myself are planning on taking advantage of the Stamp Duty holiday, however I'm concerned if we would be considered as first time buyers.

My wife doesn't own any properties, so she is fine.

I on the other hand own an overseas property. The property belonged to my grandmother. I bought her share a long time ago, with her legally owing it until she passed away (usufruct). After she passed away, I bought my aunt's share and now own 100% of the property. When I bought my aunt's share (2 years ago), the whole property was valued at €25k. The property is visited by my parents, nobody lives there, I haven't lived there at all. It wasn't rented ever, either.

Apart from that a year ago my parents flat got transferred to me, but they maintain the usufruct until both of them pass away. I also received some land in the same way (aunt holds the usufruct until she passes away) - but I believe this doesn't count, as it's not a dwelling.

Having laid out the above, can anyone tell me if I'd be exempt of paying the 3% Stamp Duty? I'm currently translating all documents, but would like to know what to expect.

Kentguy
Posts:6
Joined:Tue Jul 21, 2020 5:49 am

Re: Overseas usufruct and Stamp Duty

Postby Kentguy » Tue Jul 21, 2020 9:15 pm

UK Stamp Duty rules apply only to UK property.
So if you were a first time buyer / owner of a UK property then the normal Stamp Duty rules currently Nil to £500,000 would apply.
However, if the flat owned by your parents in which they reside is in the UK then you are already a UK property owner if it is registered in your name. Therefore I would expect the 3% additional property / second homes rule would apply on your new purchase regardless whether you have lived at that address or not.
However if the flat is overseas then you would still count as a first time purchaser...
That is my understanding anyway..

Kentguy
Posts:6
Joined:Tue Jul 21, 2020 5:49 am

Re: Overseas usufruct and Stamp Duty

Postby Kentguy » Tue Jul 21, 2020 9:51 pm


Kentguy
Posts:6
Joined:Tue Jul 21, 2020 5:49 am

Re: Overseas usufruct and Stamp Duty

Postby Kentguy » Tue Jul 21, 2020 9:56 pm

UK Stamp Duty rules apply only to UK property.
So if you were a first time buyer / owner of a UK property then the normal Stamp Duty rules currently Nil to £500,000 would apply.
However, if the flat owned by your parents in which they reside is in the UK then you are already a UK property owner if it is registered in your name. Therefore I would expect the 3% additional property / second homes rule would apply on your new purchase regardless whether you have lived at that address or not.
However if the flat is overseas then you would still count as a first time purchaser...
That is my understanding anyway..
Sorry, please ignore the above reply as I now believe it to be inaccurate... My apologies and hope you get the correct replies from other members.....

Sonmi451
Posts:2
Joined:Mon Jul 20, 2020 3:20 pm

Re: Overseas usufruct and Stamp Duty

Postby Sonmi451 » Thu Jul 23, 2020 3:50 pm

UK Stamp Duty rules apply only to UK property.
So if you were a first time buyer / owner of a UK property then the normal Stamp Duty rules currently Nil to £500,000 would apply.
However, if the flat owned by your parents in which they reside is in the UK then you are already a UK property owner if it is registered in your name. Therefore I would expect the 3% additional property / second homes rule would apply on your new purchase regardless whether you have lived at that address or not.
However if the flat is overseas then you would still count as a first time purchaser...
That is my understanding anyway..
Sorry, please ignore the above reply as I now believe it to be inaccurate... My apologies and hope you get the correct replies from other members.....
Thank you for your response!

All properties and the land are overseas. I've been renting in the UK for the past 5 years (since I came here).

I assume the €25k house doesn't count as it's lower than the £40k threshold, the land shouldn't count as it bare ownership and isn't a dwelling anyway.

The only concern I have is the bare ownership on the my parent's flat. The value is over £40k, but I don't physically own it until my parents pass away. It's also not my main residence either...

I'd be interested in what other people have to say about this.

Thanks!


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