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Where Taxpayers and Advisers Meet

Higher rate of LTT confusion

Javy
Posts:4
Joined:Wed Mar 29, 2023 2:17 pm
Higher rate of LTT confusion

Postby Javy » Wed Mar 29, 2023 2:24 pm

My husband and I married in 2018. He has owned a property solely in his name for over 40 years. I also owned a property in my name which I have just sold. I am looking to purchase a replacement property, again in my sole name. Would I have to pay the higher rate Land Transaction Tax due to my husband owning his own property ? I have spent a lot of time trying to find the answer….neither my solicitor or a firm of accountants can help.

bd6759
Posts:4234
Joined:Sat Feb 01, 2014 3:26 pm

Re: Higher rate of LTT confusion

Postby bd6759 » Wed Mar 29, 2023 11:21 pm

Are you replacing the home in which you will live?

Javy
Posts:4
Joined:Wed Mar 29, 2023 2:17 pm

Re: Higher rate of LTT confusion

Postby Javy » Thu Mar 30, 2023 9:36 am

We will both live in the new property but not immediately. We will stay in my husband's house and get it ready for sale (there is a lot to do). I want to put the proceeds of my sale into buying another property so that the market does not overtake me.

AGoodman
Posts:1717
Joined:Fri May 16, 2014 3:47 pm

Re: Higher rate of LTT confusion

Postby AGoodman » Thu Mar 30, 2023 11:03 am

but did you live in the property you just sold and, if so, when?

Javy
Posts:4
Joined:Wed Mar 29, 2023 2:17 pm

Re: Higher rate of LTT confusion

Postby Javy » Thu Mar 30, 2023 11:48 am

I lived in the previous property until 2 weeks ago.

bd6759
Posts:4234
Joined:Sat Feb 01, 2014 3:26 pm

Re: Higher rate of LTT confusion

Postby bd6759 » Thu Mar 30, 2023 11:12 pm

If you are replacing your main residence with another main residence you will not need to pay the additional rate, but you will need to move into it without undue delay.

Javy
Posts:4
Joined:Wed Mar 29, 2023 2:17 pm

Re: Higher rate of LTT confusion

Postby Javy » Fri Mar 31, 2023 9:25 am

The thing is I cannot financially commit to another property until I know for sure if the higher rate of tax has to be paid. I really appreciate the advice but I can’t really rely on ‘without undue delay’. The rules are confusing and unclear.
But many thanks for the help.

bd6759
Posts:4234
Joined:Sat Feb 01, 2014 3:26 pm

Re: Higher rate of LTT confusion

Postby bd6759 » Fri Mar 31, 2023 8:59 pm

It quite simple. The additional rate is not due if you are buying a residence that will replace your previous residence. In this context “residence” means the place where you intend to live for the foreseeable future.

Obviously if you do not move in to it right away then it could be said that it is not your residence. Only you know the reasons for not moving in. Getting another house ready for sale is a strange reason: normally it’s getting the new house ready to live in, not getting the old house ready to move out from.

Until you are clear with your intentions and reasons, the advice you get will be similarly unclear and with caveats.


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