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Stamp Duty Advice


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Hi

I currently live at home with my parents but have build up a portfolio of 7 properties over the past 8 years. My partner and I are getting married and moving in together next year and I’m curious as to what level of stamp duty I will have to pay. There is a lot of guidance regarding if your new residence replaces your previous residence you can claim back the additional stamp duty but nothing really covers if it’s your first main residence.

Has anybody been in a similar situation or could anyone offer any advice?

Thank you

Joe

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From Gov.uk

Rates for a single property

You pay stamp duty at these rates if, after buying the property, it is the only residential property you own. You usually pay 3% on top of these rates if you own another residential property.

Property or lease premium or transfer value SDLT rate
Up to £125,000 Zero
The next £125,000 (the portion from £125,001 to £250,000) 2%
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%

You need to double check this with a solicitor, but if its your only residential, then you shouldnt have to pay the 3% surcharge. I tend to use the Knight Frank calculator to check figures as its always well maintained and up to date.

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker & BTL Specialist

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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20 hours ago, Joe Duffy said:

I currently live at home with my parents but have build up a portfolio of 7 properties over the past 8 years. My partner and I are getting married and moving in together next year and I’m curious as to what level of stamp duty I will have to pay. There is a lot of guidance regarding if your new residence replaces your previous residence you can claim back the additional stamp duty but nothing really covers if it’s your first main residence.

Has anybody been in a similar situation or could anyone offer any advice?

The SDLT surcharge is designed for 2nd homes and buy to let investors. We are all entitled to have one main home (our principal private residence). The PPR comes with tax benefits, including no CGT and no SDLT surcharge

I wrote an article about the tax benefits of principal private residence here 

You should definitely speak to your solicitor. However, just note that some solicitors are very cautious on these matters and may not apply SDLT tax breaks that you are entitled to. I think that there are over 50 reliefs available in the 2003 Stamp Duty Land Tax Act. Not a lot of people know that. 
 

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Hello All, 

I am in a similar situation myself. I currently have one BTL within a limited company and i am in the process of buying another. But i do plan to buy my own home within the next 5 years. 

So if i am reading this right, i will not pay or shouldn't pay the excess stamp duty when i come to buy my first own personal home? So if i was to buy my own personal house for £500k (as an example) I would only end up paying stamp duty of £10,000? Not £30,000?

When i have spoken to solicitors in the past all of them have said i dont get this benefit as i already own BLT property. 

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