Stamp Duty

Mcbob

My husband and I are selling our house and thinking about buying a new one.
We have been working outside the UK and may do so again. What I can't work out is, if we buy somewhere and decide to rent it out later what happens with stamp duty. We would be paying the stamp duty rates for home movers but if we rented it out in a year or so , would we have to pay the larger rate applicable to buy to let option?

saajan_12

Stamp duty has nothing to do with 'home movers' or BTL. You pay
(1) 0% or tiered if you're a FTB (never owned before) and purchase a home upto a certain limit
(2) Standard rate if you purchase your only property (ie go from 0 to 1 house or sell current houses and buy one)
(3) Higher rate (standard + 3%) if you purchase an additional property so at the end of the transaction you own >1 property.

For (3) there might be some refunds depending on whether you're moving home, but you still pay the higher rate. In terms of what you pay upon purchase, what matters is # properties owned before / after purchase. .

davidmcn

saajan_12 wrote: »

(1) 0% or tiered if you're a FTB (never owned before) and purchase a home upto a certain limit

Provided it's (initially) your main residence.