2nd Property Stamp Duty

[John The Pessimist]

Neighbours in my village are in the process of buying a house. It has some stables and she will be setting up a livery (already in the horse game and knows her stuff). Solicitors have just dropped the bombshell that if they don't shift their current place by the time they exchange, they will have to come up with £30K, cash. Based upon a 'nod & wink' the solicitor is now dragging his feet on the conveyance to try to give them time.

How many other transactions are out there in limbo? How many chains dragging on with houses perpetually SSTC?

[Arpeggio]

That would be interesting to know. Sure this wouldn't happen as much if houses were bought more with earned wealth instead of inflated capital sinks and bailed out debt.

[longtomsilver]

I thought the extra stamp duty was only payable if you are still holding on to the old property after 36 months?

[eek]

1 hour ago, longtomsilver said:

I thought the extra stamp duty was only payable if you are still holding on to the old property after 36 months?

Nope you have to pay it up front but can reclaim it back once you've sold the previous property provided you sell it within that 36 months.

Edited October 30, 2016 by eek

[longtomsilver]

1 hour ago, eek said:

Nope you have to pay it up front but can reclaim it back once you've sold the previous property provided you sell it within that 36 months.

Thank you for clearing that one up for me. My guess is that there'll be a lot of motivated sellers who overstretched themselves moving up the next rung and paid the stamp duty on 24-42month 0% credit cards. 

[renting til I die]

Not about the stamp duty but seemed an appropriate tread to ask this question;

I know a couple (married with kids) who have moved but kept the old house, still using it to visit London, etc. They put one person as the residence of each property as a way to avoid capital gains tax and now are looking to sell the one in London. I think what they are doing is unjust, although an understandable way to avoid tax. Is it legal? and if so won't everyone be doing this?

Edited October 30, 2016 by renting til I die

[Gogled]

It isn't legal. Won't work for stamp duty or CGT. Married couple can only have one residence. Can be helpful for income tax.

[Kiwi Toast]

I thought it was 18 months. 36 months is quite generous.

I wonder if there are still people contemplating BTL, making offers etc. not realising about the stamp duty....

[SarahBell]

On 30/10/2016 at 10:05 AM, longtomsilver said:

I thought the extra stamp duty was only payable if you are still holding on to the old property after 36 months?

Claim it back ..
Which is the right way to do it.