Stamp Duty Clawback

M

mickpyrmont

Registered User
Messages
44
I know there are numerous threads on this but just want a definitive answer in case i get myself in trouble.

Situation is; am thinking of renting my ppr out and renting myself closer to work, i bought 3 years ago. If i rent out now am I liable to pay SD (as it is within a 5 year period, which were the rules when i purchased) or am i now ok to rent as I have lived in it for more than 2 years?

thanks
 
a reply to a query in a daily newspaper stated that the change in the claw back from 5 to 2 years also applies to property being rented out for the first time after 5.12.2007 and the owner is in their 3rd 4th or 5th year of ownership
 
SD clawback period is 2 years since December 5th 2007. You would not be liable.
 
This is clutching at straws a bit but..
Is there a sliding scale applicable. i.e. after a year do you owe half or do you just pay over all that's owed?
 
If I let someone live in the apartment for free until the two years period of the clawback are up does that create a problem? What about if they pay the Utility Bills?

1. Do they have to pay BIK?
2. Does it break the conditions of the clawback and will I owe the SD anyway?
 
I presume (but don't know for sure) that you could do this and avoid the SD clawback. You should probably get professional advice if you are seriously considering this. Obviously doing this would have other implications - e.g. presumably you would cease to be an owner occupier so could no longer claim owner occupier mortgage interest relief, your lender might need to be informed, you would probably need alternative insurance cover etc. The free rental accommodation may have gift tax implications for the tenant. You should also calculate if the cost to you of doing this might not end up being more than the SD clawback anyway.
 
If I basically let someone live in apartment for free until the clawback period is up,
1. Do they owe BIK?
2. Does this break the conditions of the SD Clawback terms?
3. If the "tenant" pays the utility bills, again, does that break the terms of
the SD Clawback?
 
Er - why are you asking the same questions again?

By the way - BIK is an issue for payments in kind from employers to employees and is irrelevant here. Gift tax may be more relevant.
 
Apologies, Explorer is getting very random in it's updating. Pilot Error therefore.
 
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