Stamp duty

carolwat

Hi

We currently let out a property that used to be the family home. We rent the house we live in as we moved out of area and are now looking to buy a home in the area we now live in. Am I right in thinking we have to pay the extra stamp duty because we own a buy to let or do we just pay the normal stamp duty as we are buying our main residence?

Thanks

Pixie5740

Depends on how long it's been since you moved out of the property that's now let. Have you read HMRC's guidance note for the additional residential property surcharge?

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/570876/SDLT_Higher_rates_for_additional_properties.pdf

AdrianC

You aren't replacing your current main residence, but purchasing an additional property. 3%.

carolwat

We left the property we own in 2010 and its been let out since. Ive read about it all but still not 100% sure if it applies or not as we are buying our main residence. If we lived in our own home and were buying a buy to let its clear that its to be paid but im not sure about the other way round.

booksurr

very simple: own 1 property and then buy another property so that you end up owning 2 properties at the same time = higher rate for the reason it is a tax on the purchase of additional properties, not what they are going to be used for.

read the guide?
https://www.gov.uk/government/publications/stamp-duty-land-tax-higher-rates-for-purchases-of-additional-residential-properties

to avoid the higher rate you would need to sell the old property before 26th November 2018 to claim a refund on the basis it was once your main home. Purchase a new property after that date and you will need to have a) lived in and b) sold the other property within the previous 3 years of the date of purchasing the new place.

carolwat

Thank you, that explains it in more detail than the gov.uk website. Its as I though and we do pay. We dont want to sell the other property so wont be claiming it back. Thanks again.