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 bigduckontax Your Own Question
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3816
Type Your Tax Question Here...
bigduckontax is online now

My brother and I jointly own a property that my father lives

Resolved Question:

My brother and I jointly own a property that my father lives in. I own a flat independently in London which I bought and lived in for 13 years. However, for the last three years I have let that flat out whilst I have been house sitting for someone else. I now am selling the property I let out and buying a new house to move into and live as my primary residence. However, I will still jointly own the property my father lives in. Will I be liable to pay stamp duty at the new higher rate?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Before I can address it properly have you elected which residence is to be entitled to Private Residence Relief (PRR), the jointly owned one or your flat?
Customer: replied 1 year ago.
My flat was always my primary residence although I had not lived in it for the last three years (I was in rented accommodation). I finally sold it last week. Now I am buying a new house which will be my private residence. We are paying 354k for it.
Expert:  bigduckontax replied 1 year ago.
As the property you are purchasing is replacing your main domestic residence then the higher rate of Stamp Duty Land Tax (SDLT) [3%] will not apply. This answer is correct for England and Wales; for Scotland more research will be necessary as the tax is one of those powers devolved.
Customer: replied 1 year ago.
Thanks. But can the flat I am selling be considered my main residence if it was let out for three years prior to sale? There is no doubt my new place will be my main residence.
Expert:  bigduckontax replied 1 year ago.
So is the residence you are selling. HMRC would look at your shared residence and your old flat and on the facts declare your old flat your primary residence. Thus you are selling one primary residence and buying another so the surcharge will not apply. Please be so kind as to rate rate before you leave the Just Answer site.
Customer: replied 1 year ago.
That's great. Thanks!
Expert:  bigduckontax replied 1 year ago.
Delighted to have been of assistance. Please don't forget my rating.
Customer: replied 1 year ago.
Of course. Just for the avoidance of doubt are you saying HMRC will be able to exercise discretion and common send when deciding whether a property was a main residence. I had understood that you had to have lived in a property in the last three years for it t be classed as s main residence. Your advice suggests they can take into account the fact that I lived there for 13 years before and am buying a new main residence, when deciding if I am entitled to relief or not. Thanks for confirming on this.
Expert:  bigduckontax replied 1 year ago.
I am of that opinion, just check the exact dates and you may be under the wire anyway.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

Related Tax Questions