Higher Rate Stamp duty

**Paralytic** · 29 September 2021, 16:34

Since when are taxes fair?

I hadn't realised owning a property abroad meant paying the higher rate stamp duty even if you're buying your first (or only) house in the UK, but it looks like that's the way it is.

Other than lying (not recommended, obviously), selling the house in NZ would be another route, and you should then be able to claim the 3% back from your UK purchase so long as the sale is made within 3 years. But, check with your solicitor on this.

Getting divorced and the splitting assets would be a more drastic solution....

The tax wasn't just put in place for BTL owners - it was a general wealth tax on those that could afford multiple properties and/or part of the tax grab on landlords.

**ladymuck** · 29 September 2021, 17:20

A cursory Google does confirm that the extra SDLT is payable even if the second home you own is overseas.

As Paralytic says, it's a tax on anyone owning more than one property, irrespective of the reason why.

As you say the NZ property is personally owned by you, does that mean it's in your name only? Is is feasible for your new UK home to be in your wife's name only as she doesn't own property anywhere else? That's the only way I can see you getting around it and as IANAL I don't know if that'll wash.

**Paralytic** · 30 September 2021, 07:28

Originally posted by ladymuck View Post

As you say the NZ property is personally owned by you, does that mean it's in your name only? Is is feasible for your new UK home to be in your wife's name only as she doesn't own property anywhere else? That's the only way I can see you getting around it and as IANAL I don't know if that'll wash.

That doesn't not work. For SDLT purposes, HMRC treats married couples as a single unit, and a property owned by one is deemed to be owned by both for the second property additional tax.

See https://hoa.org.uk/advice/guides-for...-second-homes/

If a property is in my spouse’s name can we dodge the additional stamp duty rate?

For stamp duty purposes a married couple, or civil partners, are classed as one unit by HMRC. So, if one owns a buy-to-let property and the other buys a property the second home stamp duty rate still applies. This can make things expensive if you are separating and need to buy another home for one partner.

**ladymuck** · 30 September 2021, 07:51

Originally posted by Paralytic View Post

That doesn't not work. For SDLT purposes, HMRC treats married couples as a single unit, and a property owned by one is deemed to be owned by both for the second property additional tax.

See https://hoa.org.uk/advice/guides-for...-second-homes/

Pah! Those dastardly tax persons. Well it did have a feeling of 'too good to be true' as I typed it out. There'd be dodges galore if that little loophole existed.

**Lance** · 30 September 2021, 07:54

If you sell it (NZ house)within 3 years of buying your UK house you can get the additional tax refunded. It's an HMRC form and they cough up in a few weeks.
Your conveyancer has told you this surely?

**Paralytic** · 30 September 2021, 08:21

Originally posted by Lance View Post

If you sell it (NZ house)within 3 years of buying your UK house you can get the additional tax refunded. It's an HMRC form and they cough up in a few weeks.
Your conveyancer has told you this surely?

Don't know about that, but i did, waaaay back in post #2.

KUATB

**bubble99** · 30 September 2021, 10:59

sadly selling the NZ house wont trigger a refund, i'm told (as its not a main residence, ive never lived in it.). Nor would selling the new UK house within 3 years.

**Paralytic** · 30 September 2021, 11:40

Originally posted by bubble99 View Post

sadly selling the NZ house wont trigger a refund, i'm told (as its not a main residence, ive never lived in it.). Nor would selling the new UK house within 3 years.

Reading further, this does seem to be the case.

Divorce it is, then?

Higher Rate Stamp duty