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SDLT rates on staircased residential property

Does the 3% second home SDLT surcharge apply on final staircasing?

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My client was a first time buyer in 2010 and bought 25% of a housing association flat (paying rent on the other 75%). She has subsequently bought other residential properties outright. She now wishes to buy the other 75% of the 2010 flat (final staircasing) but is concerned that she will be surcharged SDLT  on the transaction because of the other properties.  

How can I advise her? She is also now non-uk resident for tax purposes. Does this make any difference?

 

 

 

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24th Apr 2019 09:22

maxmcculloch wrote:

How can I advise her?

De leur meilleur côté tâchons de voir les choses:
Vous vous plaignez de voir les rosiers épineux;
Moi je me réjouis et rends grâces aux dieux
Que les épines aient des roses.

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24th Apr 2019 12:48

Well, they sound like linked transactions to me.

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24th Apr 2019 15:46

Since 2017 Budget staircasing without the 3% SDLT surcharge is possible if the relevant conditions are met. See:

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdlt...

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25th Apr 2019 09:09

Thank you Justin Bryant.

Question:
Per the HMRC manual you linked to,
a condition of the transaction - 'only or main residence for the whole of the 3 year period' can be met, but leads me to ask whether someone can have an 'only or main residence' in the UK if they are resident abroad for UK tax purposes?

From what I've read, HMRC looks at actuality rather than election and if the owner (or part owner in this case) has been out of the country - all but for a few days each year - can they have a UK main or only residence? Is everyone entitled to one 'main residence' property?

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25th Apr 2019 20:57

Thank you

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26th Apr 2019 09:08

Is this lady within the non-resident landlords scheme? I suspect it will be hard to persuade HMRC that her main residence is in the UK.

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