How To Avoid 3% Stamp Duty Penalty - 3+ Ways To Avoid
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- Опубліковано 11 вер 2024
- The 3% Stamp Duty Land Tax charge is based on the purchase of a second house or a first house within a limited company structure
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In this video you will learn about
- What is the 3% Stamp Duty Land Tax?
- How do you calculate the 3% SDLT higher rate
- How can the 3% SDLT higher rate be avoided?
- What types of property are not subject to the higher rates of Stamp Duty Land Tax
#Tax #Property #BuyToLet
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To reduce the SDLT amt on a big property.If one buys say an apt worth 80K, he would pay 3% on 80K.After a couple of months this 80K property is sold and a new property worth 600K is purchased.In this case the STLD would be saved on 600K ,and the stamp duty which he had to pay on 80K property would be far less than the SDLT on 600K property. Please give some insight, if it's allowed. There would be big saving.
Unfortunately I’m not sure I fully understand what you are saying or trying to achieve.
You would not save Stand Atlantic by buying an £80,000 property with another property at £600,000 unless you’re buying a home. However, you would need to book a tax consultation to go through all of the details and process steps
I am planning to buy my first property in the U.K., but I will rent it out immediately after the purchase. Do I still need to pay the extra 3% stamp duty when I only have one flat?
You will have to pay the 3% SDLT and another 2% if you are no a UK resident
We weren’t allowed to take the chattels into consideration as the mortgage company would not allow it. Why would that be?
I am not sure to be honest. I am sorry that you had to pay more SDLT than you needed to
Lenders may class them as incentives which could impact LTV (like builders incentives on new builds)
I sold my main residence and bought another place to replace it. As I was “moving home”, I didn’t pay the additional stamp duty.
However, I also bought a secondary property with the aim of renting it out at the same time.
I completed both properties on the very same day.
However, I am not living in the property I paid lower stamp duty for.
My main residence happened to be the one I paid higher stamp duty for.
What’s going to happen now?
I dont want to face issues if I change my main residence again from a capital gains tax and stamp duty (moving home point) of view.
Any advice is appreciated, thanks.
You pay the 3% stamp duty rate on second properties. Upon my understanding you sold your home which meant that you no longer had any properties in your name. The very next property you buy would not have the 3% stamp duty high rate because you’re only have one property in your name. The very next property be at your home or a rental property you would pay the 3% additional rate stamp duty because you already have a property in your name.
@@UK-Property-Tax-Accountants Thanks for your message Simon. I had one BTL at the time of selling but since I was "moving home", I didnt have to pay the extra stamp duty so there was never a case where I had 0 properties. When I sold my main home I have gone down from 2 to 1. Now the issue is, the one that was meant to replace my main home didn't. Plans changed and I ended up living in one of the BTL ones (the one I completed on the same day).
I have 2 properties of my own and looking to move into a 3rd with my missus, is there anyway to dodge the 2nd property tax. For exapmle. Buy it in her name and add on in the future or create a company and buy the properites through the company ?
Any jnfo would be useful thanks. The more i educate myself the more i feel like the government is just pulling our pants down man 😢!
It nay be a good idea to book a tax consultation with us here: optimiseaccountantsltd.as.me/optimiseaccountantstaxconsultation?_gl=1*lmq08e*_gcl_au*MjA2NzQ4OTM3Ni4xNzE4MTM3MTQy
We are buying a second home and renting our first property, Our Solicitor is saying I don't have to pay an extra 3% percent of stamp duty, since I'm moving into the new property I'm buying. I have asked on call and they gave me repeated quotes four times without the extra 3%, I think they are wrong. In the future day, prior to completion, if they admit they gave me a false quote, can I ask them to help me to pay an extra 3%? would they help? can I take legal action against them?
The issue you have is that HMRC will come for you for the tax. As you know what the tax is it should be paid irrespective if the solicitor tells you this amount or not. Conveyancing solicitors are legally protected, wrongfully. Solicitors seem to know that they can get away with incompetence
@@UK-Property-Tax-Accountants I hope so, but what for we are paying for Conveyancing, they lack of basic knowledge, even after email and mention on the call, they trying to convince me no additional 3% is required.
I can only empathise with you. Please stick with it because I’m sure it will be worth it in the end
What if the property was not uninhabitable? I.e No kitchen or bathroom? That's exempt from SDLT right?
It’s not exempt but there are reductions
See I think if it has not bathroom and kitchen it's no longer a "dwelling" and SDL is applicable to a dwelling. But you are the expert so maybe check it out with HMRC.
Read this www.gov.uk/stamp-duty-land-tax/nonresidential-and-mixed-rates
Also makesworth.co.uk/sdlt-and-uninhabitable-properties/
@@UK-Property-Tax-Accountants I think I got so if it's under £150k then nothing if its not a dwelling ? Thank you
I purchased a derilict property (no roof) in sept 2019, paind 3% can i claim?
Potentially for sure.
Do you still pay stamp duty if you are doing a house swap with the value difference
You pay stamp duty land tax based on the property value. SDLT is paid irrespective of the sale of a property