Buy to let stamp duty query

KevSmith

Hi,

I recently bought a second home for my wife and kids to live in as we were going to be splitting up. As ever with relationships/complications etc we've now decided not to and so have this 'other' house.

I bought the house a month ago for 60k so it was exempt from stamp duty but I'm now considering letting it out.

My question is will I have to retrospectively pay the 3% stamp duty as it is a BTL property now (technically it wasn't when I bought it!)

Thanks

AnotherJoe

You should have paid the extra SDLT to start with. The fact it was a BTL is not relevant. The extra tax is on subsequent houses not BTLs.

mrginge

Why was it exempt from stamp duty?

Pixie5740

KevSmith wrote: »

Hi,

I recently bought a second home for my wife and kids to live in as we were going to be splitting up. As ever with relationships/complications etc we've now decided not to and so have this 'other' house.

I bought the house a month ago for 60k so it was exempt from stamp duty but I'm now considering letting it out.

My question is will I have to retrospectively pay the 3% stamp duty as it is a BTL property now (technically it wasn't when I bought it!)

Thanks

1) It's not a technicality, it was not in fact a BTL property when you purchased it nor was it your intention for it to be a BTL property.

2) The higher rate of SDLT is not a specific tax for BTL properties. The higher rate of SDLT for the purchase of additional residential properties applies when you purchase additional residential properties.

3) You pay SDLT when you purchase a property. Are you purchasing a property?

4) I'm not sure how the property your purchased one month ago was exempt from SDLT if it wasn't your first residential property purchase and it was a second (do you mean additional) property.

Cakeguts

Sell it. £60k is too cheap for a buy to let if you want good tenants.

SmashedAvacado

60k would usually be exempt as a first home that’s presumably why but unfortunately you’ve not accurately filled in your land transaction return as this should have attracted 3% - so really you need to pay it ASAP plus the small fine as this could come to bite you.

Pixie5740

SmashedAvacado wrote: »

60k would usually be exempt as a first home that’s presumably why but unfortunately you’ve not accurately filled in your land transaction return as this should have attracted 3% - so really you need to pay it ASAP plus the small fine as this could come to bite you.

I don't understand your presumption. The OP says that the property purchased was a second home not a first home. It is possible that the first home was a rental property and that the second home attracted the FTB SDLT relief because it is the first property either the OP or his wife has ever purchased which would be ok as the intention when purchasing it was to live in it as the main residence.

The OP really needs to clarify the situation.

SmashedAvacado

I’m not saying he’s right I’m saying how it’s likely he concluded (wrongly) that nothing was payable

buggy_boy

If you own a property (if married you are deemed to be one for this SDLT) and you buy an additional property it does not matter what the property will be used for it attracts the 3% additional SDLT unless you sell your primary residence at the same time...

Note if you sell your primary residence in the allowable time you can claim back the 3% SDLT.

It would appear from what the OP said that he should have paid the additional 3% SDLT.

KevSmith

Hi,

Thanks for all the replies - hopefully this will clarify:

Partner moved in with me 3 years ago and we got married 1 year ago. She moved into my house which is obviously in my name only.

As she owned no home and the house has gone down in her name only I paid no stamp duty as it isn't a second home and was less than 125k.............


Thanks

davidmcn

Well, if it's not even your house then of course you don't need to pay any stamp duty for it...