Will I still be hit with 3% extra stamp

rob9287

My main residence house I want to keep if possible.

I want to buy another house down south (in the army live away). I understand if I don't sell my main residence I will pay extra stamp duty. But.... I own a BTL house and my wife owns her own BTL house. Had for several years before we met each other. Now we have both bought the house we live in.

Question 1.

If I sold my main residence would I still have to pay extra stamp because we own another 2 properties?

Question 2.

I would like to stay in my resident. Could we move back into one of the properties and sell that instead (it's going on the market soon) then move back into the other property?

Question 3.

If me and the wife both sold our BTLs we will still be hit with extra stamp duty as we are not moving from our main residence?

There has got to be a solution where I can keep my resident house and buy again with out the tax man pulling my pants down.


Thanks for taking time to read

bigisi

Why do you think you shouldn't have to pay the tax you will owe?

Gary123456790

As I understand the rules, if you carry out a transaction and end up with more houses than you started with, you pay extra stamp duty.

So if you own 100 BTLs but sell your main residence and buy another main residence, you don't pay extra stamp duty because you bought 1 and sold 1.

I'm not sure if it is the same if you sell a BTL and buy a main residence, have a review here https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

rob9287

bigisi wrote: »

Why do you think you shouldn't have to pay the tax you will owe?

Why should I pay an extra 3% when the government have moved me down south?

Gary123456790 wrote: »

As I understand the rules, if you carry out a transaction and end up with more houses than you started with, you pay extra stamp duty.

So if you own 100 BTLs but sell your main residence and buy another main residence, you don't pay extra stamp duty because you bought 1 and sold 1.

That was my thinking as long as I sell one and I am not increasing my house numbers I would avoid the 3% surcharge. I take a read thanks

rob9287

bigisi wrote: »

Why do you think you shouldn't have to pay the tax you will owe?

Why should I pay an extra 3% when the government have moved me down south? I'm looking at the option in avoiding the higher tax bracket.

Gary123456790 wrote: »

As I understand the rules, if you carry out a transaction and end up with more houses than you started with, you pay extra stamp duty.

So if you own 100 BTLs but sell your main residence and buy another main residence, you don't pay extra stamp duty because you bought 1 and sold 1.

I'm not sure if it is the same if you sell a BTL and buy a main residence, have a review here https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

That was my thinking as long as I sell one and I am not increasing my house numbers I would avoid the 3% surcharge. I take a read thanks

Pixie5740

Question 4: Have you read the manual?

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09730

If you meet conditions A, B, C and D the higher rate will apply.

SmashedAvacado

Question 1.

If I sold my main residence would I still have to pay extra stamp because we own another 2 properties?

No

Question 2.

I would like to stay in my resident. Could we move back into one of the properties and sell that instead (it's going on the market soon) then move back into the other property?

This doesnt make a lot of sense to me.

Question 3.

If me and the wife both sold our BTLs we will still be hit with extra stamp duty as we are not moving from our main residence?

you pay when you buy, not when you sell. if you are replacing your main residence, then you can get relief. If you are not, you can't. your question 1 indicates that you are looking to sell your residence and buy another. If that's the case then i am not sure that q3 is relevant.

You should check this with an accountant because replacement / residence have particular meanings attached to them.

martindow

How long are you likely to be down south? I imagine the army pays allowances for you to live in different locations. Does it really make sense to buy a house when you might be moved again?

rob9287

martindow wrote: »

How long are you likely to be down south? I imagine the army pays allowances for you to live in different locations. Does it really make sense to buy a house when you might be moved again?

No we get put in substandard accommodation. That's why I would like to purchase a place. If we have to sell main resident then we would to avoid the extra % rather just sell my BLT instead to be honest but the government just make it hard.

xylophone

That's why I would like to purchase a place.

But can't you be moved anywhere at any time? Would you keep buying places?

A cousin is in the army and has a wife and child and lives in quarters - I haven't heard him complain about sub standard accommodation.