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Stamp duty when owning holiday home overseas

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Indig0
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Stamp duty when owning holiday home overseas

#175516

Postby Indig0 » October 22nd, 2018, 1:41 pm

We rent our primary home in the UK, however own a holiday property in Europe.

Am I right in thinking, that based on current regulations, if we were to buy a property in the UK we would need to pay the additional stamp duty as it would be deemed a second property?

Could I just transfer ownership or gift the holiday home (to my child for example) in order to remove the additional duty?

Lootman
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Re: Stamp duty when owning holiday home overseas

#175520

Postby Lootman » October 22nd, 2018, 2:04 pm

FYI, you might be interested in a recent thread I started on a related question, and some of the issues that were raised by attempts to finesse the extra stamp duty on a second home:

viewtopic.php?f=49&t=14251

That said, if the gift to a child is a genuine one, then I do not see why that would not work, as long as you no longer derive any benefit from that holiday home.

The other idea, as I raised in the cited thread, is that each of the two homes could be held solely in the name of just one spouse.

Indig0
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Re: Stamp duty when owning holiday home overseas

#175532

Postby Indig0 » October 22nd, 2018, 2:52 pm

Thanks for the link, seems like it generated quite a bit of discussion!

Lootman
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Re: Stamp duty when owning holiday home overseas

#175538

Postby Lootman » October 22nd, 2018, 3:20 pm

Indig0 wrote:Thanks for the link, seems like it generated quite a bit of discussion!

I almost think there might be a business opportunity for people who do not own a property to "lend" their entitlement to a lower stamp duty rate to those who already own a home and are buying another. So for a fee I offer to buy a property and then later gift or bequeath it to you.

In any event I do wonder how much gifting back and forth of properties is going on because the government has chosen to make stamp duty so personalised, discriminatory and arbitrary.


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