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Peter, Chartered Tax Advisor
Category: Tax
Satisfied Customers: 42
Experience:  Director at PDS Tax Limited
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I'm a UK Resident currently working overseas on a contract.

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I'm a UK Resident currently working overseas on a contract. I have just sold my only property (main residence) which i let out and bought another at the same time. My main residence will therefore be transferred to the new property which I will also be letting out. I have no other property globally. Will I need to pay the higher stamp duty rate on my new purchase?
JA: When was the property or asset sold?
Customer: It is in the process of being sold now
JA: Anything else you want the Accountant to know before I connect you?
Customer: No only that I have bought me new property with a buy to let mortgage

Hi, my name is ***** ***** I am a Chartered Tax Advisor. I am reviewing your query and will reply shortly.

Peter and other Tax Specialists are ready to help you
Customer: replied 3 days ago.
Thanks Peter
Customer: replied 3 days ago.
You can call me now Peter if you can
Customer: replied 3 days ago.
Hi I ordered a phone call, is anyone going to call me?
Customer: replied 3 days ago.

Apologies for causing any confusion. I am going to provide you with a full written response to your query this evening. Please let me know if this is not going to be acceptable.

Kind regards, Peter

Customer: replied 3 days ago.
Hi Peter, that would be fine, thanks.
Customer: replied 3 days ago.
Hi Peter, correction, I am a UK citizen not resident.

Firstly apologies for the delay in responding.

You will be subject to higher rate SDLT if at the end of the day of the acquisition of the new rental property you own two residential worth over £40k each, no lease under with under 21 years remaining involved, and the second property is not being acquired to replace your main residence.

A 'main residence' is typically where you spend most of your time living but other factors are also taken into consideration such as: where your family live, schooling, where you vote, where you work, where your possessions and furniture are, where your car is registered, where you pay local taxes such as council tax.

As the new property will be a UK rental property and you are working overseas I unfortunately cannot see how the new property will be your main residence (unless I have misunderstood?). The new property does not count as your main residence for SDLT purposes just because it is the only property that you own.

I hope my answer was helpful and clear. If you have any further queries please let me know.

Customer: replied 2 days ago.
Thanks for your reply Peter.I can confirm that I will only own one property at the end of the transaction as I am selling one property to buy another at the same time and the transaction will go through at the same time. So owning only one residential property at the end of the day should make me liable for the lower SDLT shouldn’t it?

Correct - if at the end of the day of acquisition you only own one dwelling worldwide then you should not be subject to higher rate SDLT.

Customer: replied 2 days ago.
Thanks Peter, that’s great.
Customer: replied 2 days ago.
Sorry, and even if I let out that property and remain in rented accommodation overseas?

Yes, provided it will be your only property at the end of the date of acquisition then it will not be subject to higher rate SDLT even if it is a rental property and you live elsewhere.

Customer: replied 2 days ago.
Thank you Peter, have a good day!
Customer: replied 2 day ago.
Hi Peter, my conveyancer has asked me clarify something further. I have my parents property held in trust and I am the trustee. Does this change anything?
Customer: replied 2 day ago.
Here is a copy of the main page.

I am not a lawyer so you will need your conveyancing solicitors to verify the position, but my view is that this appears to be a life interest trust in favour of your parents and as such should not count as an interest in another dwelling for your SDLT purposes. I assume you are not entitled to any income of the property under the deed.

You do need to discuss this in more detail with your solicitors though. I have a concern that this is not a valid trust as it it my understanding that trusts in land require a minimum of two trustees.

Customer: replied 1 day ago.
Thank you again Peter, the trust has no monetary value, and l’ll check the trust status. Have a good weekend!