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Stamp duty advice

paulsturgess
paulsturgess Posts: 3,799
in Not Sports Related

Hi, wondered if anyone can help me with some advice.

I own a GF flat in a converted house. The guy upstairs is considering selling his flat. If I could scrape together enough to buy it, I could then amalgamate it with my flat into one house.

If I bought his flat, I'd be liable for the additional home stamp duty cost. I am wondering if there would be any chance of getting that surcharge refunded by HMRC once the two properties were combined?

Comments

  • bobmunro
    bobmunro Posts: 20,842
    This article seems to cover it - but as it says, it's a grey area.


  • paulsturgess
    paulsturgess Posts: 3,799
    Thank you. Had googled a bit but not come across that article! 

    Clear as mud eh…


  • Chippycafc
    Chippycafc Posts: 14,141
    Could always wait a couple of years as someone is going to abolish it.
  • Diebythesword
    Diebythesword Posts: 286
    Chippycafc said:
    Could always wait a couple of years as someone is going to abolish it.
    By which time his neighbour would’ve been long gone…
  • Covered End
    Covered End Posts: 51,989
    Chippycafc said:
    Could always wait a couple of years as someone is going to abolish it.
    Yeah paulsturgess, just ask the bloke upstairs to not sell his flat until the Tories regain power, when they may get rid of stamp duty. I'm confident he'll be happy to wait indefinitely.
  • Todds_right_hook
    Todds_right_hook Posts: 10,878
    Is the property a former house converted into flats, you would be deconverting?

    if not, what is the likelihood of planning consent? 
  • BOWAddick
    BOWAddick Posts: 17
    I think you'll find that the Labour government was considering abolishing stamp duty on primary residences anyway before Kemi Badenoch made her announcement last week. Neither of them are likely to abolish stamp duty on second homes.
  • paulsturgess
    paulsturgess Posts: 3,799
    Todds_right_hook said:
    Is the property a former house converted into flats, you would be deconverting?

    if not, what is the likelihood of planning consent? 
    It is, and it would be fine to get planning. 

    Everything is straightforward essentially. It is just trying to get it to be viable, and the stamp duty surcharge impacts a bit on some of the leeway around that, albeit it is not as enormous an issue as it might be because the cost of the additional home duty on a flat is not massively more than it would be on buying a house as primary residence but at almost double the price of the flat. 
  • TheGhostofTomHovi
    TheGhostofTomHovi Posts: 23
    Don’t forget the legal fees incurred in combining 2 titles into 1, more than you probably expect. Plus 2 sets of rates whilst you slowly get that approved. 

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