Settle an argument

[Tedx]

Is it true that if you buy a holiday home abroad (Spain, for example) whilst still having a home in the UK, your liable for UK second home stamp duty (or whatever it's called) on your holiday home purchase?

Google seems to suggest that this is the case, but it doesn't quite answer the question (maybe I'm asking the wrong question of course)

Thanks

[the0ni0nking]

Stamp duty (and its Scottish equivalent) is a UK tax so doesn't apply to overseas purchases of land and buildings.

In Spain, there is a circa 10% purchase tax on property/land payable (and dealt with by your solicitor). Purchase costs all in probably total c12-14% depending on the exact rate of ITP (purchase tax) which is devolved to individual communities.

See HMRC which clearly states it applies only in England & Wales (with Scotland having a differently named equivalent)

https://www.gov.uk/stamp-duty-land-tax

[Tedx]

Oh well. Looks like I've lost an argument. I was sure I read (on here!) that you were due the tax.

[the0ni0nking]

Just to avoid any pedants corrections - I realise I erroneously said England and Wales when it is in fact England and NI.

Wales and Scotland both have similar but differently named taxes re purchase of land and buildings.

But the key point is that it a tax based on land/property in the UK and does not capture purchases made overseas.

If the question had been Jersey/Guernsey/Isle of Man then I suspect further review of the individual territories tax regime would be necessary (and I can't be bothered doing that!)

[Lootman]

Oh well. Looks like I've lost an argument. I was sure I read (on here!) that you were due the tax.

I think that you might have read about a situation where you already own an overseas property and then buy a UK home. That UK purchase is subject to the higher "second home" rate of stamp duty. Obviously you would need to volunteer that piece of information to the solicitor handling the second purchase, for the extra tax to be paid.

So the sequence of events matter.