Buy-to-let stamp duty rises

dbonyad

Hi all,

I have a bit of a complex question about the second home stamp duty system.

I currently own two properties. One property I live in as my main and only residence, the other property is let.

I want to sell my main residence and buy a new property. I know that by doing this, I should avoid the additional 3% stamp duty as I will be replacing my main residence. Also, I know that if I were to buy a new property and then sell my main residence within 18 months, I can claim a refund of the 3% extra stamp duty.

However, I want to know what happens the other way around. What if I sell my main residence before buying the new property, and then buy the new property later? Will I avoid the extra 3% stamp duty in that case?

Basically, I want to put myself in a better buying position. So sell my property, live in a rental or with friends for a with months, and buy when the right property comes up.

Any advice would be great!

[Deleted User]

Have a look here:

https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

The last sentence under the heading 'Replacing your main residence' reads:

"If you already have 2 or more properties, and you sell your main residence, you won’t have to pay the higher rate if you buy a new main residence within 3 years."

The way I read that is that you should be ok as long as the purchase of your next 'main residence' is within 3 years.

theGrinch

you will still have a cash outflow until you get any rebate due,