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Stamp duty on second home

On another property matter, are you able to look at the stamp duty issue for Roger and Jools who, having sold their main home (PPR) two years ago (Nov 2013) and bought a cottage in Devon (Aug 2014) and have lived there since (but let it out 3 months during winter). They are currently selling a bungalow in West Bridgford that has been rented and are now looking to buy another property in Devon for £300/350,000 and live in it as their primary residence. Would the cottage be viewed as a stop gap and avoid the extra loading of stamp duty on this second £300,000 property? If not, what would we be charged in extra stamp duty on this purchase, and what would the total stamp duty be?

Asked on May 5 2016, Home Finance in Kingsbridge | Report content

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  • First, ignore what was sold two years ago, what do you own now? 1. 'Cottage in Devon. 2. Bungalow. (It is not stated where they live for the three months the cottage is rented, another home abroad?) So, you already own more than one residential property. And as you live in one for nine months of the year that would appear to be a primary residence. Unless all are sold by the time the new 'primary residence' is acquired you will still own more than one. On the face of it they will pay the higher rate. If you were to sell the cottage that you live in for nine months of the year then that might be considered the primary residence. Budget on the assumption that the higher rate is payable, ( CGT on the properties sold as they are rented). SDLT rates for additional properties from 1 April 2016 over £250,000 and up to £925,000 8% https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property Advice provided here is free and worth what you pay for it.

    Web reference: http://www.gov.uk/government/publications/stamp-duty-land...

    Answered on May 7 2016, Report content
  • You can find out what your stamp duty will be on your second home by visiting online a conveyancing website.

    Web reference: http://www.homebuyerconveyancing.com/buy-to-let-conveyanc...

    Answered on Jul 9 2016, Report content

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