Second House Buying

Would you like to buy a cottage in the UK?

SDSLT 3% extra charge from November 2015more

Are you already the owner of a home that is either your home or an outlay? Many real estate buyers buy real estate below the lower SDLT level of 125,000 so they can prevent having to pay an SDLT for their purchase. The 3% additional SDLT is in excess of the SDLT rate specified in my prior review and is calculated on the full amount of the real estate.

If, for example, you already have a house that you do not want to resell as part of the deal, you will receive the extra 3% SDLT. Whose account is affected by the 3% SDLT premium? From November 2015, the authorities promised the new fees (from their Autumn Declaration). Let's look at the scenario that leads to the 3% SDLT surcharge:

Selling your own house and buying another house you do not have to add 3% to this area. But if you are paying the 3% SDLT premium if you are not selling your house as part of the deal. The 3% SDLT premium can be reimbursed by HMRC if you are selling your first house within three years of purchasing the new house.

You would not have to use the 3% SDLT supplement if you previously had a house (where you lived). A parent who buys real estate for his or her own son or daughter can establish trusts so that the baby is a recipient of a trusts, which means they do not have to foot the additional taxes.

Relocate to one of your real estate assets and announce that it is your main residence/house. It can be resold in the near term if you have enough of the real estate. There are two advantages to this: 1) you lower the Capital Gains Tax (CGT) on the sale of assets and 2) you lower the 3% SDLT fee.

Think about changing the mortgages before you move back into the home. When you buy a £300,000 real estate, the new SDLT applications are much more significant.