Stamp Duty Land Tax due to 2nd Property

[Chairman Mao]

Please can anyone help/advise??

 

I currently reside with my wife and family in accommodation provided to me by a UK Fire & Rescue Service Fire Authority.

 

 

My wife currently owns a two bedroom terraced property which she currently rents out with consent due to moving in with me shortly after us both meeting.

 

The UK Fire & Rescue Service Fire Authority have informed me and my family that they intend giving us notice to vacate the property due to their intent to sell off the property for other financial purposes.

 

This has forced me to act quickly and to locate a property suitable for my family to use has our main residence and to put my wife’s property on the market for sale due to the property not being suitable for my family.

 

 

The seller of the property we wish to buy has accepted an offer and a mortgage has been approved, we hope to complete the sale within a couple of months. My wife’s property is currently undertaking viewings.

 

My conveyance solicitor has informed that due to my wife having a second property during the purchase that we will have to pay the additional higher 3% SDLT on top of the 2% stating that the Fire Service property does not qualify as our main residence even though I have resided there since 2001 and my wife since 2010.

 

Due to the change in StampTax Duty Law earlier this year I do accept that we will have to initially pay the additional 3% SDLT due to my wife and I currently potentially having two properties during this transition.

 

However what does seem to discriminate and be totally unfair against myself and family is that due to my employment in the Emergency Services and the place of work to where I have been contracted to work, that I have no so called “main place of residence” has outlined in the Government Stamp Duty Document.

 

This impacts upon us not only due to the fact that I have to finance the additional 3% Stamp Duty to secure a“main place of residence” family home, but also by the fact that the property that we plan to sell is also not classed has our main family home, therefore I have been told by HMRC Helpline that once it’s sold (within 3 years) of purchasing our main place of residence (therefore only owning the one property), that we are not eligible for claiming back the higher SDLT due to that property not being our “main residence”.

 

Is the above correct and I have to swallow the bullet or have I misread something so that I am entitled to reclaim??

 

This situation seems to be a rare case

I just hope that the HMRC Tax Office accept that the unusual circumstances of myself and family have been overseen in the HMRC stamp duty document and that they will act accordingly.

 

 

Therefore not to financially penalise myself and family by not allowing us to reclaim the additional higher 3% SDLT on completion of sale of my wife’s property and due to our sole intention of only to own the one property of “main residence”. :mad2:

 

All I'm asking for is fairness and this does'nt seem to be the case.

 

Thanks

Edited December 20, 2016 by Chairman Mao

[ericsbrother]

you could buy ths property in your own name and then transfer half of it to her later. As you dont own any other property that should stop the 2nd home tax. You will have to have the mortgage in your name only as well though, does your salary meet the lending ratio requirement? Check that out though, the taxman might not agree

[king12345]

Other solution would be to sell your wife's property first or at the same time of buying the other property as part of a chain.

Worse comes to worse, there are voltures companies who purchase houses for lower than market value and complete in 2 weeks.

I would strongly recommend not using them, but counting the pennies, it might prove that it's cheaper to sell to them quickly then paying the extra stamp duty.