Stamp duty refund

[mehaul]

Hi All,

<Long time lurker, first time poster>

I went sale agreed on a property in Jan 07 and paid over 30k in Stamp duty (6% discounted) as a first time buyer. I'm the only registered owner on the property.

My father is named on the mortgage but doesn't contribute (simply to get the loan from the bank).

I currently have two rooms rented out under the rent-a-room scheme (below the taxable limit, so not liable for claw back).

Situation: I have heard of other first time buyers purchasing investment properties and having to pay full whack on the stamp duty. They were then able to buy their "first" house, i.e. PPR at the reduced ftb stamp duty rate (which would be zero these days).

Question: If I were to let my property out above the rent-a-room allowance threshold and so expose myself to a stamp duty clawback (whether by staying where I am and increasing the rent, or by moving back to parent's house and letting the property in its entirety), would I, in essence be doing as above and making myself eligible for the first time buyer's stamp duty discount i.e. zero (assuming the next property I buy becomes my ppr for the following 2 years and I only let out spare rooms under the rent-a-room thresholds)?

To say I'm sore having missed the stamp duty free eligibility, costing me over 30k is an understatement!

Cheers

MeHaul

 

[elcato]

Situation: I have heard of other first time buyers purchasing investment properties and having to pay full whack on the stamp duty. They were then able to buy their "first" house, i.e. PPR at the reduced ftb stamp duty rate (which would be zero these days).

I dont think this is true. Once you lose FTB status its gone forever regarding stamp duty. Are you mixing it up with TRS ?

 

[ClubMan]

Hi All,

<Long time lurker, first time poster>

I went sale agreed on a property in Jan 07 and paid over 30k in Stamp duty (6% discounted) as a first time buyer. I'm the only registered owner on the property.

My father is named on the mortgage but doesn't contribute (simply to get the loan from the bank).

I currently have two rooms rented out under the rent-a-room scheme (below the taxable limit, so not liable for claw back).

Are you actually living there?

Situation: I have heard of other first time buyers purchasing investment properties and having to pay full whack on the stamp duty. They were then able to buy their "first" house, i.e. PPR at the reduced ftb stamp duty rate (which would be zero these days).

You are no longer an FTB for SD purposes if you have previously bought another property including an investment property. The scenario you paint can only happen if the purchase of the second property by a non FTB owner occupier would have been exempt from SD anyway - e.g. a new build.

Question: If I were to let my property out above the rent-a-room allowance threshold and so expose myself to a stamp duty clawback (whether by staying where I am and increasing the rent, or by moving back to parent's house and letting the property in its entirety), would I, in essence be doing as above and making myself eligible for the first time buyer's stamp duty discount i.e. zero (assuming the next property I buy becomes my ppr for the following 2 years and I only let out spare rooms under the rent-a-room thresholds)?

No - you will never be an FTB for SD purposes on any future property purchase.

To say I'm sore having missed the stamp duty free eligibility, costing me over 30k is an understatement!

You can avail of SD exemption by buying a new build as an owner occupier at any time.

 

[mehaul]

Thanks guys,

Elcato, I'm not mixing these up.

The situation explained to me was from a person working for an estate agent. She had bought an apartment as an investment paying full stamp duty. She then proceeded to buy a house and is claiming FTB status as she didn't previously avail of the relief.

Judging from your replies she may be in a questionable position.

My situation is different in that (in answer to Clubman's question) I am actually living in the house now. I thought if she was correct in what she was doing, there may be a way I could manouver into a similar position. I guess not.

Thanks for the responses

MeHaul

 

[ClubMan]

The situation explained to me was from a person working for an estate agent. She had bought an apartment as an investment paying full stamp duty. She then proceeded to buy a house and is claiming FTB status as she didn't previously avail of the relief.

This is wrong. If it happened then most likely it was fraudulent.

My situation is different in that (in answer to Clubman's question) I am actually living in the house now. I thought if she was correct in what she was doing, there may be a way I could manouver into a similar position. I guess not.

Nope. You can avoid SD as a non FTB by buying a new build though.