Tax On House Purchase

[waterbitch]

we are currently trying to buy a house for us to live in and have just found out that we may have to pay 3% tax on the purchase price as we also have a house we rent out,we knew if we sold the house we rent out we'd have to pay capital gains tax but we are not selling it.This 3% tax would add on over £3000 pounds and we will have to cancel if true. Is it also true if we sign the deeds before 1st April this tax will not apply.

[Buenchico]

All explained here:
http://www.zoopla.co.uk/discover/buying/q-a-new-3-stamp-duty-surcharges/

[Dogsbody2]

... and here 4 weeks ago on your very own Answerbank.

http://www.theanswerbank.co.uk/Home-and-Garden/Property/Question1474046.html

[fiction-factory]

There's a case in the press today
http://www.telegraph.co.uk/personal-banking/mortgages/the-governments-buy-to-let-tax-changes-mean-i-will-have-to-sell/?ref=yfp

[Dogsbody2]

Complete claptrap for the buy to let community to claim this measure will increase rents. Rents are driven by demand versus supply conditions, not the costs incurred by landlords.

Note to OP, there may well by an acceptable solution to your dilemma if you sell the buy to let property you already own within 18 months. You have to initial pay the tax but can claim it back. Refer the the Treasury guidance in my original answer to the question in the link above.

[Old_Geezer]

Sounds a cynical wealth grab by the government to to me. One would not be buying that which should be considered a second home. That will have already been bought. What one is doing to changing one's primary home.

Any excuse to screw folk it seems. I take it then that it will be applied even if other properties are not let ? The more I hear of authorities the lower my opinion of them, goes.

[Dogsbody2]

No not another tax but an attempt to prevent buy to let purchasers pushing up house prices at the expense of first time buyers.

So, OG, the rules have been drawn such that if you own a house you can't buy another without paying the extra 3% stamp duty land tax. Helps prevent people buying holiday homes too. The OP could just as easily move into the house that is let currently.

Government has devised the 18 month rule I highlighted precisely to prevent those who buy as an interim before selling original house being disadvantaged.

[waterbitch]

thanks everyone,our solicitor has informed us we have to pay the 3% if purchase not completed before 1st April,only alternative is to evict tenant sell that place and pay the 3% on it! then free to buy house of our dreams while ex tenant is having nightmares no doubt,dunno how this helps people in rented homes.!Feel sick cos this is our perfect little home we want to buy but now it's all up in the air.many thanks to all again.

[Dogsbody2]

No! you don't pay the extra 3% on the buy-to-let you already own.

If you sell the buy-to-let within 18 months of April 2016, you'd only have one house still still, so you'd get back the extra 3% that you had to pay at April 2016.

That was the whole purpose of the reply I put togther at 08.12 this morning (2nd para). Look at the flow chart in the link from the earlier thread.

[bednobs]

if it's perfect, £3000 seems little