Stamp duty - which property is deemed the main residence?

moneymark

I currently live in a flat I rent flat where I have lived for 4 years. I own a property that I used to live in which I have rented out for the past 4 years.

I am now buying a new property whilst retaining the original property I own and rent out.

Can the property I deem as my main residence be the rented flat I have lived in for 4 years?

The reason I ask if this is because I have been through the stamp duty calculator on HMRC and selected Yes for Additional residential property and Yes for Replacing main residence and it says I will pay the lower rate.

If it is the case, am I right in thinking the property I have rented for the last 4 years as my main residence?

Any guidance would be appreciated.

Thanks

Pixie5740

You currently own one residential property. At the end of the transaction you will own two residential properties. In other words you will have purchased an additional residential property so the higher rate of SDLT will pay.

Pixie5740

Here's the HMRC Guidance Note that's linked to in almost every thread (of which there are MANY) on the forum about the higher rate of SDLT.

saajan_12

In your case you will be increasing the number of properties you own from 1 to 2 so the higher rate stamp duty will apply regardless of main residence.

Main residence considerations only begin to be relevant if you are maintaining the same number of properties, i.e. buying a new main residence and selling old main residence (even if there is a gap between these transactions upto 3 years).

G_M

moneymark wrote: »

The reason I ask if this is because I have been through the stamp duty calculator on HMRC and selected Yes for Additional residential property and Yes for Replacing main residence and it says I will pay the lower rate.

If it is the case, am I right in thinking the property I have rented for the last 4 years as my main residence?

This only applies if you are selling (replacing) your main residence.

On the calculator, you need to select 'no' for 'Replacing main residence' as you are not selling it.

00ec25

and just to add - you cannot claim something is your residence when it is in fact let out to tenants. It is their residence, not yours.

your residence is (currently) the place you yourself rent and whilst there is an allowance made where someone rents before buying their new home, the rule applies only where the old place is then sold within certain time limits,

you are not selling the old place as others have already pointed out several times