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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am a UK resident and have a property in my name abroad. I

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I am a UK resident and have a property in my name abroad. I am planning to gift this to another family member within the next week. I have no other properties in my name and am currently renting. I am also planning to put down a deposit for a residential property (to live in, not buy to let) as soon as possible. Since I will have gifted the property abroad, do I still pay the 3% extra stamp duty tax? Is there a period I have to wait for after gifting the property before I buy here?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. You might refer to the notes here. The 3% increase only applies to UK property but so long as you have only property at the end of the purchase, you will not have to pay the extra stamp duty. I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.
Are you certain this only applies to UK property?From Zoopla's information service on the 3% surcharge on stamp duty:Q. Who has to pay it?
A. Anyone who is buying additional residential properties, for example a holiday home or buy-to-let, within England, Wales, Northern Ireland and - under a separate announcement in the Scottish Government's Budget - in Scotland too.
The surcharge applies even if the home you already own (or part-own) is overseas. So, if you have a ski chalet in Bulgaria and are buying your first home in the UK, you’ll still be stung with the extra tax.Q. When did it kick in?
A. The new surcharge took effect from 1 April, 2016, but was first announced in the Chancellor’s 2015 Autumn Statement Spending Review. If you wanted to avoid paying it, you had to complete (not just exchange) on any second home purchase by midnight on 31 March, 2016 (unless you had already exchanged on or before 25 November, 2015, the date when the new tax was announced in the Chancellor's Spending Review).
Customer: replied 1 year ago.
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Expert:  TonyTax replied 1 year ago.
Overseas properties are taken into account for the purposes of determining how many properties one owns at the end of a purchase but the SDLT is only on the UK property. See paragraph 2.12 of the notes here.
Expert:  TonyTax replied 1 year ago.
All you need to do is give away the overseas property before you complete on the new purchase. If the foreign property was your previous main home, you have 18 months to sell it after a new purchase and once you have sold it, you can reclaim the extra stamp duty that you will have had to pay.
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Customer: replied 1 year ago.
Very useful. Thank you.
Expert:  TonyTax replied 1 year ago.
Thanks.

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