Do we pay higher stamp duty on buying a house in the UK if we keep our EU flat?

Q My husband and I are looking to buy property in the UK and our budget is around £325,000. I already own a flat in Budapest, which my parents bought for me 10 years ago, and at the time the purchase price was around £25,000. I understand we wouldn't be first time buyers in the UK even if we sold the flat, but would like to know if we would have to pay the higher stamp duty when buying our new house if we were to keep the Property of Budapest? We are both Hungarian citizens but UK residents for 10 years with established status. KV

A As you know, if you already own a property anywhere in the world, you are liable to pay Land Stamp Duty (SDLT) rates the highest when buying a second property in England and Northern Ireland (different rules apply in Wales and Scotland). However, as you also know, in England and Northern Ireland, if the first residential property (or part of it) is worth £40,000 or less, you don't have to pay the higher SDLT rates on your second property.

To convince HMRC that the first property is really worth less than £40,000, you will need to ask a real estate professional, such as a realtor, to provide a written appraisal at that time. you acquire the second property. The value of the first property when you acquired it - in your case, £25,000 - doesn't count.