SDLT - Moving Back to England from Abroad
Discussion
I've been living abroad for 4.5 years and moving back later this year.
We own a house that was our family home from when we bought it in 2012 until we moved out in early 2020, it's been rented since then. We also own an apartment in the same town bought in 2018 as an investment that has been rented out since then.
Our main residence from March 2020 for a few months was accidently with my parents as Covid restrictions in the country we moved to delayed our plans to move there.
We really enjoyed living in the town where my parents live and are considering settling there when we move back.
As far as I can tell, buying in the first 6 months of moving back would be subject to an extra 2% SDLT non-resident surcharge as I need to reside in the UK for 183 days in the prior 12 months. Renting for a while in the new town seems sensible anyway while we settle our children in school and get jobs, etc...
The bit I am less sure about is the 5% additional property surcharge. Ideally we would sell the apartment, but keep the house as an investment as the returns are better, I think that clearly puts any new purchase into the 5% surcharge.
If instead we kept the apartment and sold our house that was our main residence at one point, but we haven't lived in for 5+ years would that change anything?
I think it wouldn't and the 5% surcharge would again be due, but I haven't been able to find any completely clear guidance on the HMRC website. Any advice on if I've understood this correctly?
We own a house that was our family home from when we bought it in 2012 until we moved out in early 2020, it's been rented since then. We also own an apartment in the same town bought in 2018 as an investment that has been rented out since then.
Our main residence from March 2020 for a few months was accidently with my parents as Covid restrictions in the country we moved to delayed our plans to move there.
We really enjoyed living in the town where my parents live and are considering settling there when we move back.
As far as I can tell, buying in the first 6 months of moving back would be subject to an extra 2% SDLT non-resident surcharge as I need to reside in the UK for 183 days in the prior 12 months. Renting for a while in the new town seems sensible anyway while we settle our children in school and get jobs, etc...
The bit I am less sure about is the 5% additional property surcharge. Ideally we would sell the apartment, but keep the house as an investment as the returns are better, I think that clearly puts any new purchase into the 5% surcharge.
If instead we kept the apartment and sold our house that was our main residence at one point, but we haven't lived in for 5+ years would that change anything?
I think it wouldn't and the 5% surcharge would again be due, but I haven't been able to find any completely clear guidance on the HMRC website. Any advice on if I've understood this correctly?
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