how will stamp duty affect you?
If you already own more than one property, and you sell your main residence, you won’t have to pay the 3% stamp duty surcharge if you buy a new main residence within 3 years. The Government has granted this grace period of 36 months to reflect "moving in difficult circumstances".
If you decided to move house but not to sell your existing home at the same time, the 3% surcharge will apply. This is because even though you are replacing your main residence, you will end up owning 2 properties. If your previous main residence is then subsequently sold within 36 months a refund of the surcharge can be applied for.
Parents helping your children
As parents, if you are already homeowners, you could face the stamp duty surcharge if you wish to help your children buy a first home. In these circumstances, if you take out a joint mortgage with your children, you will appear on the deeds meaning that legally you would now own a second property.
However, if you simply help with the deposit or act as a guarantor then the surcharge should not apply. We would recommend you seek independent advice from tax advisors before making any decisions.
The stamp duty surcharge will generally apply to an additional property being purchased by a limited company. This applies to both existing companies and new companies formed for the purpose of purchasing property.