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Stamp Duty Calculator and Q&A discussion

edited 31 March 2010 at 12:06PM in House buying, renting & selling
139 replies 110K views
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  • SDLT_GeekSDLT_Geek Forumite
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    Slithery said:
    howy686 said:
    I inherited a 3-bed semi from my parents in 2018. I decided to rent it through an agent rather than sell - our tenants have been paying rent to me via an agent for nearly 2 years now.
    However, I also have my own home, where I've lived for 40 years 
    My question  is, if I sell my own home & move to another property, will that attract the so-called landlord tax ? 
    There's no such thing as 'landlord tax', it's a tax for additional properties...
    If you are selling your main residence and purchasing another one to replace it then no, the additional tax won't be due.
    Assuming the new home being bought is in England, then the tax in point is stamp duty land tax.  It sounds as if the "replacement exception" will apply, so the extra 3% SDLT will not be due, just the regular SDLT.
  • howy686howy686 Forumite
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    Yes - we would be selling our main residence & purchasing another one....but we also own another house which was inherited and have rented to tenants since 2019. So we wandered if this would 'hike-up' the rate of stamp duty we would pay on the purchase of our new main residence.
  • Tori0152Tori0152 Forumite
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    Hi, wondering if anyone can offer guidance to my scenario:
    I own an apartment which I always bought with the intention of keeping as a rental, since moved out of this and I am now a landlord. Due to complete on a house purchase as my main residence with my partner next week, I always thought I would have to pay 2nd home stamp duty but a recent article on The Times suggests not:
    Another option could be to buy your second home first. According to the wording of the rules set out by the Treasury, if you can prove that the second property you buy is a main residence, and not an additional one. 
    I've sent this and queried twice with my solicitors and they believe I must pay the 3% surcharge fee. Does anyone have any advice on this?
    TIA
  • AnotherJoeAnotherJoe Forumite
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    howy686 said:
    Yes - we would be selling our main residence & purchasing another one....but we also own another house which was inherited and have rented to tenants since 2019. So we wandered if this would 'hike-up' the rate of stamp duty we would pay on the purchase of our new main residence.

    you probably know this by now but no it wouldnt
  • SDLT_GeekSDLT_Geek Forumite
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    Tori0152 said:
    Hi, wondering if anyone can offer guidance to my scenario:
    I own an apartment which I always bought with the intention of keeping as a rental, since moved out of this and I am now a landlord. Due to complete on a house purchase as my main residence with my partner next week, I always thought I would have to pay 2nd home stamp duty but a recent article on The Times suggests not:
    Another option could be to buy your second home first. According to the wording of the rules set out by the Treasury, if you can prove that the second property you buy is a main residence, and not an additional one. 
    I've sent this and queried twice with my solicitors and they believe I must pay the 3% surcharge fee. Does anyone have any advice on this?
    TIA
    The Sunday Times article is based on a scenario where someone sells their home and at that point owns nothing else at all.  They then buy a property not intending to live in it as their only or main residence.  That escapes the 3% surcharge as it is the only property owned at that point (one has to watch out for spouses etc).  If a new home is bought afterwards, but within three years of selling / moving out of the original home, then that purchase could also escape the 3% surcharge. That is because all of the conditions for the "replacement exception" are likely met.  You will find the five conditions set out in SDLTM09800.
  • meister112meister112 Forumite
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    Hi all,
    I wonder if someone can clarify if I'll have to pay the extra 3% stamp duty...

    In September 2013 I bought my first home (property A). Then in April 2015 I moved in with my girlfriend who owned her own house (property B).
    I switched property A to a buy to let mortgage and started renting it, and started contributing to the payment of the mortgage of property B.
    In March 2021, my girlfriend and I sold property B and are now renting as an interim as we search for a house to buy together. When we do find somewhere to buy (property C) will we have to pay the extra 3% stamp duty?

    Help with this matter would be gratefully received.
  • meister112meister112 Forumite
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    And for some reason in my last post "B" was replaced with B)
  • edited 19 January at 7:28AM
    grumiofoundationgrumiofoundation Forumite
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    edited 19 January at 7:28AM
    Hi all,
    I wonder if someone can clarify if I'll have to pay the extra 3% stamp duty...

    In September 2013 I bought my first home (property A). Then in April 2015 I moved in with my girlfriend who owned her own house (property B).
    I switched property A to a buy to let mortgage and started renting it, and started contributing to the payment of the mortgage of property B.
    In March 2021, my girlfriend and I sold property B and are now renting as an interim as we search for a house to buy together. When we do find somewhere to buy (property C) will we have to pay the extra 3% stamp duty?

    Help with this matter would be gratefully received.
    I am sure SDLT_Geek will be able to give the definitive answer but I would suspect it will depend on if you can 'show' property B has been your main residence*. You say you contributed to the mortgage - how was this done? were you added to the mortgage/deeds?

    If property B was your main residence* then you would be replacing a previous main residence (if you buy within 3 years of March 2021) and then would not need to pay the +3%. 

    *for clarification replacing main residence means you had to own the previous residence (in this case property B ), not just live there. 

    And for some reason in my last post "B" was replaced with B)
    I have help with this! Its when you post a capital B next to a bracket - need to leave a space B ) B)
  • SDLT_GeekSDLT_Geek Forumite
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    @grumiofoundation is right in saying that you only escape the 3% surcharge if you owned a share in Property B.  Contributing to the outgoings while you lived there is not enough in itself.

    What was said during the conveyancing process of the sale of Property B about its ownership could be relevant.
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