[Misc] Question for stamp duty tax experts

DJ NOBO said:

I bought Property A in 2013.
In Oct 2018, I moved into a rented property, I’ll call it Property B.
I’ve let out Property A, but it remains my main residence for stamp duty purposes.
I’m still living in Property B but am now looking to buy another place, Property C.
If I buy Property C, during the stamp duty holiday, I’m expecting to pay the 3% stamp duty surcharge.
As I understand stand it, I will be able to apply for a refund for the surcharge if I sell Property A within three years of purchase of Property C (the three year rule).
But here’s the nub. I have read that I also would have had to have lived in Property A at some point within the previous three years.
I’m asking, as I’ve had an offer from my tenants to sell Property A. It’s not a great one but it maybe my best chance to sell before Oct 2021, when it will have been three years since I last lived in Property A.
If I don’t Have to sell before Oct 2021 to get the stamp duty refund, I’d rather wait to sell at some point during the three years after purchase of Property C.

There’s a calculation online on the gov website that will tell you exactly what’s due in tax if you fill all the figures in , you don’t need to pay a financial advisor to find out .

Many things financial advisers will tell you follow a standard good practice guideline and you can find them all out with a little bit of research online . Unless you’re the type of person that has very complicated accounts with property abroad and income coming from offshore accounts etc you really don’t need to pay what is in effect a middleman to tell you what you can find out for free.

Also if you don’t think the tenants offer is good , why not find a good local independent estate agent and put the property on the market . The market is quite strong at the moment and you may be surprised with what you can sell at . Tenants usually want a cheap deal .


Hope this helps

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Live by the sea said:

DJ NOBO said:

I bought Property A in 2013.
In Oct 2018, I moved into a rented property, I’ll call it Property B.
I’ve let out Property A, but it remains my main residence for stamp duty purposes.
I’m still living in Property B but am now looking to buy another place, Property C.
If I buy Property C, during the stamp duty holiday, I’m expecting to pay the 3% stamp duty surcharge.
As I understand stand it, I will be able to apply for a refund for the surcharge if I sell Property A within three years of purchase of Property C (the three year rule).
But here’s the nub. I have read that I also would have had to have lived in Property A at some point within the previous three years.
I’m asking, as I’ve had an offer from my tenants to sell Property A. It’s not a great one but it maybe my best chance to sell before Oct 2021, when it will have been three years since I last lived in Property A.
If I don’t Have to sell before Oct 2021 to get the stamp duty refund, I’d rather wait to sell at some point during the three years after purchase of Property C.

There’s a calculation online on the gov website that will tell you exactly what’s due in tax if you fill all the figures in , you don’t need to pay a financial advisor to find out .

Many things financial advisers will tell you follow a standard good practice guideline and you can find them all out with a little bit of research online . Unless you’re the type of person that has very complicated accounts with property abroad and income coming from offshore accounts etc you really don’t need to pay what is in effect a middleman to tell you what you can find out for free.

Also if you don’t think the tenants offer is good , why not find a good local independent estate agent and put the property on the market . The market is quite strong at the moment and you may be surprised with what you can sell at . Tenants usually want a cheap deal .


Hope this helps

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Thanks a lot

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schmunk said:

I think what you're seeing from the online advisers may relate to capital gains tax, which is a separate consideration for you.

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warmleyseagull said:

This. You are liable for CGT on the portion of time that you have let it, sounds like most. You can't claim for full private residence relief unless you have lived in the property for the entire period - see https://www.gov.uk/tax-sell-home. Indeed, if you have not lived in at all, you cannot claim for any, otherwise it is time apportioned. It is irrelevant that you live in rented.

Good news is that there is £12,000 pa allowance before CGT bites, plus you can add all costs of acquisition (including stamp duty & legals) and improvements to the cost of the house, and deduct costs of sale (agents fees, legals) from proceeds.

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knocky1 said:

You will have lived in prop A within 3 years up to October 2021.
You can buy property C before April 2021 (Stamp duty holiday Currently ends). If A sold At this point you pay no SD before April. If not gone through you can reclaim within 3 years but would have to make C your main residence.

https://www.stampdutycalculator.org.uk/stamp-duty-second-homes.htm#stampdutyrefund

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Moshe Gariani said:

Do you trust your wife?

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DJ NOBO said:

I bought Property A in 2013.
In Oct 2018, I moved into a rented property, I’ll call it Property B.
I’ve let out Property A, but it remains my main residence for stamp duty purposes.
I’m still living in Property B but am now looking to buy another place, Property C.
If I buy Property C, during the stamp duty holiday, I’m expecting to pay the 3% stamp duty surcharge.
As I understand stand it, I will be able to apply for a refund for the surcharge if I sell Property A within three years of purchase of Property C (the three year rule).
But here’s the nub. I have read that I also would have had to have lived in Property A at some point within the previous three years.
I’m asking, as I’ve had an offer from my tenants to sell Property A. It’s not a great one but it maybe my best chance to sell before Oct 2021, when it will have been three years since I last lived in Property A.
If I don’t Have to sell before Oct 2021 to get the stamp duty refund, I’d rather wait to sell at some point during the three years after purchase of Property C.
Some online tax advisers say it’s a condition that you have to have lived in Property A at some point within the three years. But I can’t find anything about that on gov.uk.
I’ve even filled out the refund form, and can’t see a reference to having to have lived in previous main residence in last three years.
But various tax advisers wouldn’t have just made it up....maybe the rules have been changed recently?
Don’t suppose anyone can help?

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DJ NOBO said:

In terms of property A? We co-own it, so yes

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Chicken Run said:

So you’ll own 3 properties right?

Why not just cough up the due tax and be thankful you have 3 properties when most 20-30 year olds might be lucky one day and own one?

I say this with no malice [emoji106]

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DJ NOBO said:

Lol. How did you work that out ?
To save you wading through my initial post, I currently own one. I will end up with one.
I don’t think you’ll find many people who would Volunteer to pay stamp duty If they didn’t have to.
Personally, I’d rather Invest that money in booze, fags and PPV.

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Moshe Gariani said:

Do you think she’d ever go behind your back and try and hamstring you?

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Moshe Gariani said:

If you want to keep all of that money, give it to your wife. The IRS allows a one-time-only gift to your spouse for up to $60,000.

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Moshe Gariani said:

If you want to keep all of that money, give it to your wife. The IRS allows a one-time-only gift to your spouse for up to $60,000.

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