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Where Taxpayers and Advisers Meet

Do I pay Stamp Duty

lloyds99
Posts: 40
Joined: Wed Aug 06, 2008 3:32 pm

Do I pay Stamp Duty

Postby lloyds99 » Mon Aug 03, 2020 4:51 pm

Hello, I have what I think is a simple question and have been given conflicting answers so I thought I would go to the top (here) for the answer. Here goes... Im disabled aged 88 And just a couple of days ago I found my perfect bungalow on my first day of looking for £460,000 and have agreed to buy it. Neither the seller nor I have a mortgage and we are both free to move quickly. My house will be going on the market in about 4 weeks (builders in) and I have high hopes of a quick sale at around £600,000 and I anticipate a quick transaction and here is the question...do I have to pay stamp duty? One person has told me I will because at some point I will own both houses until mine is sold. Another says I have to pay it and reclaimed it when mine is sold, another says I don’t have to pay Stamp Duty at all as my purchase is under £500,000. I’ve got an appointment with a Solicitor in a few days and Im sure he will explain it all to me at length but I don’t want to appear too daft in his presence. Phew, that took some describing..
Thank you
Jackie

someone
Posts: 422
Joined: Mon Feb 13, 2017 10:09 am

Re: Do I pay Stamp Duty

Postby someone » Mon Aug 03, 2020 5:08 pm

If the property you are buying is your second (or more property) at the time of purchase and you have not disposed of your main residence in the last three years (both of which seem true based on what you've said) then you do pay the 3% additional rate.

Provided you sell your former main home within three years of purchasing your second property AND you made that second property your main home as soon as reasonably possible after purchase, then you can reclaim the second home stamp duty that you paid - but there are strict time limits for making the reclaim so make sure your solicitor knows what to do to make the reclaim before you exchange on the sale and/or make sure you've talked it through with an accountant before you sell.


HTH.


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