Rishi..... Will people who are buying a second property, be exempt from stamp duty?

nightrider1470 · 8 Jul 2020 at 12:36

Not got chance to watch... if anyone finds out , could you let me know.

Thanks

peterwalkley · 8 Jul 2020 at 12:40

I would be very surprised if that happens, on the grounds second property owners are in the tabloid hate buckets of rich people or greedy landlords.

Stu999 · 8 Jul 2020 at 12:48

I hope not. Why should they be exempt?

Daaaavvveee · 8 Jul 2020 at 12:56

Main homes only they just said then, no stamp duty under 500k.

nightrider1470 · 8 Jul 2020 at 12:59

I only own a flat worth about 65k... I'm trying to buy my home from my parents, but the stamp duty is so high as I own the flat.

I'm a stay at home dad... I'm not rich at all.

Hopefully I don't have to pay?

Daaaavvveee · 8 Jul 2020 at 13:00

nightrider1470 said:
I only own a flat worth about 65k... I'm trying to buy my home from my parents, but the stamp duty is so high as I own the flat.

I'm a stay at home dad... I'm not rich at all.

Hopefully I don't have to pay?

Buy the house, pay the stamp duty, then sell the flat(Within 2 years?) and claim the stamp duty back?

Surveyor · 8 Jul 2020 at 13:13

nightrider1470 said:
I only own a flat worth about 65k... I'm trying to buy my home from my parents, but the stamp duty is so high as I own the flat.

I'm a stay at home dad... I'm not rich at all.

Hopefully I don't have to pay?

You presumably won't pay any standard rate stamp duty up to £500k but you'll still have to pay the appropriate second home rate.

200sols · 8 Jul 2020 at 13:43

peterwalkley said:
I would be very surprised if that happens, on the grounds second property owners are in the tabloid hate buckets of rich people or greedy landlords.

For good reason.

Diddums · 8 Jul 2020 at 14:00

For situations like yours there should be a workaround, but you'd be better off asking a professional.

I do think that an exemption on stamp duty for second properties would induce an amount of rage hitherto unseen, and rightfully so.

Liquid_Entity · 8 Jul 2020 at 14:06

yes, good news, save myself almost £3k when we move from flat to house.

Matthew.M · 8 Jul 2020 at 14:08

The 3% additional rate still applies, but it's now 3% total up to £500k for additional properties.

https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates

Semple · 8 Jul 2020 at 14:09

nightrider1470 said:
I only own a flat worth about 65k... I'm trying to buy my home from my parents, but the stamp duty is so high as I own the flat.

I'm a stay at home dad... I'm not rich at all.

Hopefully I don't have to pay?

As Dave says, sell the flat after your purchase to reclaim the SDLT.

dl8860 · 8 Jul 2020 at 16:35

If you buy a new main residence but there’s a delay in selling your previous main residence, you’ll have to pay the higher Stamp Duty rates as you’ll now own two properties.

However, if you sell or give away your previous main home within 3 years of buying your new home you can apply for a refund of the higher SDLT rate part of your Stamp Duty bill.

You can request a refund for the amount above the normal Stamp Duty rates if:

you sell your previous main residence within three years, and

you claim the refund within three months of the sale of your previous main residence, or within 12 months of the filing date of your SDLT tax return, whichever comes later.

https://www.moneyadviceservice.org.uk/en/articles/everything-you-need-to-know-about-stamp-duty

Is your 65k flat your current residence? If it's not and it's a rental which you will keep, then it's right that you pay the additional second home amount, even if you are an unrich stay at home Dad.

bazzabear · 8 Jul 2020 at 16:58

Daaaavvveee said:
Buy the house, pay the stamp duty, then sell the flat(Within 2 years?) and claim the stamp duty back?

Exactly this. We did this last time we moved house. A redundancy payment put us in the lucky position of not needing to sell the old house in order to buy the new one. So we paid the horrific stamp duty, sold the old house at our leisure, and then applied for the refund so that overall we had only paid normal stamp duty levels.

Moving house and not having to have everything done on the same day was a delightful experience I have to say. So much less stressful, and nice to be able to paint a few rooms before the move too.

There was a slight worry about if the old house didn't sell. But it being unoccupied made it more attractive to buyers anyway, and it was gone within 2 months.

shiver · 8 Jul 2020 at 18:06

bazzabear said:
Exactly this. We did this last time we moved house. A redundancy payment put us in the lucky position of not needing to sell the old house in order to buy the new one. So we paid the horrific stamp duty, sold the old house at our leisure, and then applied for the refund so that overall we had only paid normal stamp duty levels.

Moving house and not having to have everything done on the same day was a delightful experience I have to say. So much less stressful, and nice to be able to paint a few rooms before the move too.

There was a slight worry about if the old house didn't sell. But it being unoccupied made it more attractive to buyers anyway, and it was gone within 2 months.

Very interested in doing this myself. Just need to persuade the wife!