Stamp Duty - profit on 1st house cover 2nd?

Hello

This may be answered in a roundabout way in other posts but I have a question re: stamp duty on 2nd hand houses.

I am thinking of buying an apt using a 100% mortgage and am intending to keep my SSIA savings as money towards stamp duty on a 2nd house some time in the future.

Can anyone confirm if my apt increases in value, can I use this gain towards the stamp duty on the 2nd house or do I need to pay this out of my own pocket?

Cheers!

Is this a home buying or a property investment query - i.e. is the second property to live in or to rent?

Its home buying, I'd be selling the 1st apartment prior to trading up to a bigger house

ciara_gmail said:

Can anyone confirm if my apt increases in value, can I use this gain towards the stamp duty on the 2nd house or do I need to pay this out of my own pocket?

Click to expand...

If the proceeds of the sale exceed the amount of the outstanding mortgage that needs to be cleared and any other ancillary selling costs then of course the excess is available to you to do what you like with it. Obviously there may be a timing issue here - you would need this money within 30 days of closing the purchase of the new property if you wanted to use it to pay the SD on the latter property. In fact the solicitor will most likely need it on the day that you close.

Or am I missing your point?

Thanks for the info - it was an obvious question but I just wanted to make sure that the proceeds are yours to do what you like with. I didnt know if there was a clause that stamp duty cannot come from the proceeds of a sale etc... Cheers Clubman!

It's a fair question. I'm not aware of any restrictions on how you can use the money. The only issue might be the timing of the two transactions and the release of the money arising from the sale of you former PPR. As I say, you need the money for paying stamp duty at the time that you close the purchase of the new PPR in most cases. Double check the details with your solicitor and if I am mistaken others will correct me here I'm sure.