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Stamp Duty - sting in the tail?
dividendhero
Posts: 2,417 Forumite
I've got a couple of BTL's and my main home, all acquired before the second home duty stamp duty.
Question is, it looks like if I moved from my main residence to a new home I''d be liable to pay an extra 3% on account of the existing BTL's - is this correct?
Question is, it looks like if I moved from my main residence to a new home I''d be liable to pay an extra 3% on account of the existing BTL's - is this correct?
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Comments
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No, not if you sell your previous residence.0
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As said, if you sell your existing residence and buy an new one, there's no additional tax to pay (you still pay standard SDLT) .0
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Not my understanding guys, If your new purchase results in you owning more than 1 property anywhere in the world you have to pay the higher rate.
https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-propertyMr Generous - Landlord for more than 10 years. Generous? - Possibly but sarcastic more likely.0 -
Mr.Generous wrote: »Not my understanding guys, If your new purchase results in you owning more than 1 property anywhere in the world you have to pay the higher rate.
https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property
Your understanding is wrong. How are you getting that understanding from the link you've just posted?0 -
Mr.Generous wrote: »Not my understanding guys, If your new purchase results in you owning more than 1 property anywhere in the world you have to pay the higher rate.
https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property
You must pay the higher SDLT rates when you buy a residential property (or a part of one) for £40,000 or more, if all the following apply:
it will not be the only residential property worth £40,000 or more that you own (or part own) anywhere in the world
you have not sold or given away your previous main home
no one else has a lease on it which has more than 21 years left to run
I'd say the underlined part is what Joe and David were referring to...0 -
dividendhero wrote: »I've got a couple of BTL's and my main home, all acquired before the second home duty stamp duty.
Question is, it looks like if I moved from my main residence to a new home I''d be liable to pay an extra 3% on account of the existing BTL's - is this correct?
Are you purchasing an additional residential property? Do you currently own 3 properties and at the end of the transaction will own 4 because you are not disposing of your current main home? If yes you will be purchasing an additional residential property and the higher rate of SDLT for the purchase of additional residential properties will apply. If not because you are disposing of your current main home the higher rate will not apply because you are not purchasing an additional residential property.0 -
Your understanding is wrong. How are you getting that understanding from the link you've just posted?
You are right, I didn't read it properly. I always have to pay it … I don't sell my main home. Residential property developer. I think everyone else should have to pay because I hate paying it, so may have clouded my judgement. :mad:Mr Generous - Landlord for more than 10 years. Generous? - Possibly but sarcastic more likely.0 -
try reading the rules before commentingMr.Generous wrote: »Not my understanding guys, If your new purchase results in you owning more than 1 property anywhere in the world you have to pay the higher rate.
https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property
SDLT is often a weekly question on here and we know the answers as we have read the HMRC manual, which you clearly have not.
https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09730
OP's scenario is the reverse of example 3
the higher rate is NOT payable as he is replacing his (most recent) main residence within the permitted timescale, assuming on/before the date he completes the purchase of the new main residence.
https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm098100
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