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Ask Jeremy Aldermartin Your Own Question
Jeremy Aldermartin
Jeremy Aldermartin, Solicitor
Category: Law
Satisfied Customers: 6343
Experience:  Dual qualified Solicitor and Attorney
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Do u advice on stamp duty tax on purchasing main residence?

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Do u advice on stamp duty tax on purchasing main residence?
JA: Where is this? It matters because laws vary by location.
Customer: in London
JA: What steps have been taken so far?
Customer: Currently we own our main residence, which is mortgage free. We are buying another property which will be our main residence. My wife has a limited company where she is the sole director and share holder. We are plaining to sale our current residence to this limited company.
JA: Anything else you want the Lawyer to know before I connect you?
Customer: now w
Customer: replied 7 months ago.
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Customer: replied 7 months ago.
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Customer: replied 7 months ago.
Do we need to pay additional stamp duty for the purchase of the new main residence? pls advice.

Hi thank you for your message if you sell your current main home first or simultaneously to buying the new home then you do not need to pay the additional rate stamp duty. If you buy the new home first then you will pay it on purchase of the second home but then can recoup the additional rate paid once you have sold your current main home provided you do so within 3 years of the purchase of the second property. I hope this helps, if you can please accept my answer and rate me 5 stars (in the top right of your screen) then Just Answer will credit me for helping you today.

Customer: replied 7 months ago.
Just to make sure I understand correctly. Although we are selling our current main residence to the limited company solely own by my wife. And the new main residence we (myself and my wife) purchasing jointly we don’t need to pay higher tax for this purchase. Am I correct?

Yes that is correct because the company has a separate legal entity even if it is controlled by your wife, the property is owned by the company then and not your wife. I hope this helps, if you can please accept my answer and rate me 5 stars (in the top right of your screen) then Just Answer will credit me for helping you today.

Customer: replied 7 months ago.
My solicitor asked to to take advice from accountant or tax advisor on the issue we have discussed above. Could I now say to my solicitor that I have taken the advice accordingly?

Hi thank you for your message, I am not an accountant or tax advisor but a solicitor so if you want to comply with what your solicitor said then you would need to speak to an accountant or tax advisor. That said, I do not see it is necessary for advice from a tax advisor or accountant as it is a legal issue. I hope this helps, if you can please accept my answer and rate me 5 stars (in the top right of your screen) then Just Answer will credit me for helping you today.

Jeremy Aldermartin and 2 other Law Specialists are ready to help you
Customer: replied 7 months ago.
Hi Jeremy, Hope you are having great weekend. I need another advice regarding the purchase of our new residence. After transferring the deposit towards our the exchange contract, my solicitor is asking us to sign this document. Could you please advice if this is the right time for raising this? And what would be implication for us if we sign this document. Just to let you know, the solicitor who is represent our purchase of new home, she is also acting as the seller for the sell of our current residence to the limited company. Above all she was fully aware of these transaction since 6th of jan 2020.
Hi thank you for your message, sorry I cannot seem to see the document. To attach this you can do so using the paperclip icon.
Customer: replied 7 months ago.
pls find the attached here. thanks
Thank you, ***** ***** take a look in the next few hours as I need to take my daughter to an event but I will lool when I get back so there will be a delay in my response.
Customer: replied 7 months ago.
no worries. thanks a lot.
Customer: replied 7 months ago.
Good Morning Jeremy, have you had any chance to look at my query. thanks.

Hi thank you for your message, you would currently be liable for the higher rate SDLT unless or until you have sold your current property in effect to the new company so this is slightly premature and indeed incorrect.

Customer: replied 7 months ago.
Thanks Jeremy. Myself and my wife owned 3 buy to let properties and all of them brought before dec 2013. would owning these property will have any impact on the SDLT for purchasing our new home? Thanks in advance.

If you no longer own them then there is no impact the assessment for SDLT is does your wife or yourself own two or more homes anywhere or will you own two or more homes anywhere, including this purchase at the time of the purchase? If the answer to that is no then you do not pay the extra 3% stamp duty if you do then you do pay it.