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bigduckontax
bigduckontax, Accountant
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I am considering purchasing a property in the UK. I am non

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I am considering purchasing a property in the UK. I am non resident for tax purposes (since 3 years) I formally owned a property which was my principal residential property and sold June 2014 due to a divorce. I am UK domiciled and was UK resident all my life until 3 years ago.
Subsequently I purchased a retirement property for my disabled mother following the death of my father, (April 2015) so that she could move and get settled without having the stress of moving and selling in one transaction. I cannot live in this property as there is an age restriction - over 55 years old only. - which I do not meet.
if I now purchase a UK property, what rate of stamp duty do I pay. - Although I own another property it is not (and cannot be) my main residence and I have no desire for it to become so.
I am within three years of selling my principle residence. the property I am purchasing will become my sole residence and main residence in the UK when I return, - currently expected to be in two years.
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.

On the purchase of your new property you will be charged the additional SDLT levy of 3% on top of the standard charge. If you sell your other property within three years you can recover the 3% surcharge. The Stamp Office say this will be refunded within 15 days after the receipt of necessary documantation. You claim on the following form:

https://public-online.hmrc.gov.uk/lc/content/xfaforms/profiles/forms.html?contentRoot=repository:///Applications/IndirectTax/1.0/SDLT16&template=SDLT16.xdp

I do hope that you have found my reply of assistance.

Customer: replied 1 year ago.
thank you Keith, the other property is already sold, (June 2014) which was my main residence. I have no intention of selling my mother's property (unless she needs to move into a home or dies) but it is not my main residence. - I accept I will have a liability to CGT on disposal.
Expert:  bigduckontax replied 1 year ago.

Yes, the CGT exception for dependent relatives was removed by ***** ***** many years ago to help fill the Treasury coffers.

Unfortunately as you already own one residential property, albeit the one occupied by your mother, the 3% surcharge will still apply, but could be recovered if Mother's home is sold within the three year time period.

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Expert:  bigduckontax replied 1 year ago.

Thank you for your excellent support.