SDTL question Post Reply

[egc1973]

hello

Any lawyer here available for a SDLT question regarding property taxes ?

We are about to purchase a flat for the first time in UK and already have one abroad but want to maintain it to rent it

Which is the tax rate to apply ? do I need to pay 2 rates as source of money doesnt come from selling another property ?

the UK flat will become my dwelling home

thanks in advance
EGC
 

[Jonny Dyson Property Consultants]

Hi EGC,

If you were an overseas buyer purchasing a a home in the UK but not living in the UK you would pay a surcharge of 2% SDLT, but only if you are remaining overseas (an overseas investor for example).

As you are intending on living in the property you would not have to pay the 2% surcharge, however any buyer who owns a property anywhere else in the world has to declare it to their property lawyer, and the purchase would be subject to the usual rate of SDLT, PLUS an additional second home surcharge of 3%.  If you sold your second home within three years of buying your flat in the UK then you would be able to get a refund of the 3% surcharge, but you have to do this within 12 months of selling.

For as long as your UK home is your principal private residence you would not be subject to Capital Gains Tax when selling.

I hope that helps,

Jonny

[egc1973]

hi Jonny
thanks a lot for your answer
website from gov.uk says 36 months to sell the second property to get the surplus back
could I give you a call ?
could you send me a private message ?
thanks regards
 

[Jonny Dyson Property Consultants]

Hi EGC,

You are correct - 36 months is three years. Happy to have a chat, I'll PM you now.

Jonny