• Additional 3% Stamp Duty

    By Guest on 19th Nov 2016

    Hi,

    I currently own a property which isn't and has never been my main residence. It is let to parents, although the initial intention was for me to reside at this property I never have and proof of this can be provided.

    I have previously owned a main residence property which I sold in April of this year, and after a period of renting I am looking with my partner to purchase a replacement main residence.

    Would I legally be required to pay the additional 3% stamp duty when completing on the new property? And in future when moving from one main residence to another would the additional 3% be payable?

    Thank you

  • 2 Answers

    By Guest on 21/11/2016

    This is a bit of a tricky one. On a strict interpretation of the legislation you would pay the 3%. This is because the rules say that you must at no time during the past 3 years have purchased another property with the intention of it being your only or main residence. I suppose the question what was your intention immediately before completion? If you have a buy to let mortgage then this would be compelling evidence that you did not intend to live there. It might be worth writing to HMRC for an opinion as I don't really believe the new regime is intended to trigger the higher rate in a case such as yours but rules are rules. As for future transactions you will not have to pay the higher rate as long as you sell the old residence and go straight to the new one

  • By Guest on 21/11/2016

    Ok great, thanks for coming back to me. Will take your advice and write to HMRC

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