How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask TonyTax Your Own Question

TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15838
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

Currently I am the sole owner of our main residence that we

Resolved Question:

Currently I am the sole owner of our main residence that we are selling and we jointly purchasing a new main residence. My husband is the sole owner of a property in Manchester, which we are looking to put on the market very shortly. This was bought as his main residence 10 years ago, but we have been living together at my home for 7 years. My husband's property has been rented out, but was not purchased as a “buy to let” and he has not claimed any tax relief on it. We have not sold it earlier as it was in negative equity.
With the stamp duty changes effective 1st April:
- Do we have to pay the extra 3% stamp duty effective 1st April 2016 on the purchase of our new residence because my husband owns another property?
- Can we claim that with the sale of our main residence and purchase of a new main residence we are exempt?
- If we do sell my husband's property within 3 years, can we claim back the extra 3% stamp duty, even though it was not his main residence for the past 7 years?
Submitted: 11 months ago.
Category: Tax
Expert:  TonyTax replied 11 months ago.
Hi. Let me take a look at this and I'll get back to you in a bit.
Customer: replied 11 months ago.
Ok thanks
Expert:  TonyTax replied 11 months ago.
You should refer to the document here, in particular the section headed "Married couples and civil partners" starting at section 2.4 and sections 2.8 to 2.11 inclusive. As a married couple, you can only have one main residence between you for the purposes of the increased rate of stamp duty. This mirrors the situation for Capital Gains Tax purposes. Therefore, as you are replacing your main residence by buying another main residence, you will only have to pay the increased stamp duty if your house is not sold at the same time as the purchase of the new house. If that is the case, so long as the previous main home (your house) is sold within 18 months of the purchase of the new main home, you will be able to claim a refund of the extra stamp duty. It all comes down to what is the main home and it seems clear to me that your house is the main home and that you are replacing it. I hope this helps but let me know if you have any further questions.
Customer: replied 11 months ago.
Thanks Tony. We are actually completing on the sale of our main residence a 3-6 weeks before we complete on our new main residence as some repairs need to be done by the seller. So we won't have to pay the higher rate stamp duty at all?
Expert:  TonyTax replied 11 months ago.
That would be correct. The other property in Manchester doesn't come into it.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15838
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 11 months ago.
Many thanks for your help
Expert:  TonyTax replied 11 months ago.
Thanks. Enjoy your new home.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.