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SDLT when replacing main home
LilacFox
Posts: 1 Newbie
Hi, first time posting, been trying to find an answer to this question and struggled so much.
Me and my husband have lived in our mortgaged home for 5 years. He also owns an additional property outright which he rents out. We now intend to sell the home we live in and move to a new home.
When I first read the .gov guidance I was under the impression that we wouldn't have to pay higher rates as we were "replacing our main home" I then asked my father who is a financial advisor (admittedly not in the field of housing or mortgages) and he was insistent that we would have to pay it because we owned an additional property. He in turn asked a conveyancing contact who also said we'd have to pay it.
I dug a bit deeper into the .gov guidance and couldn't understand how I was miss-understanding it, additional articles on property website and blogs seemed to indicate that there is an exception when you're replacing your main home.
We then got in contact with a mortgage broker to look at how much we can borrow and mentioned the SDLT question to him. He also got in contact with a conveyancer who again indicated that we would have to pay the higher rates.
Can someone explain why? We're able to factor the cost in but I'm not about to blindly pay it if I don't have to. Is it because we're married?
Me and my husband have lived in our mortgaged home for 5 years. He also owns an additional property outright which he rents out. We now intend to sell the home we live in and move to a new home.
When I first read the .gov guidance I was under the impression that we wouldn't have to pay higher rates as we were "replacing our main home" I then asked my father who is a financial advisor (admittedly not in the field of housing or mortgages) and he was insistent that we would have to pay it because we owned an additional property. He in turn asked a conveyancing contact who also said we'd have to pay it.
I dug a bit deeper into the .gov guidance and couldn't understand how I was miss-understanding it, additional articles on property website and blogs seemed to indicate that there is an exception when you're replacing your main home.
We then got in contact with a mortgage broker to look at how much we can borrow and mentioned the SDLT question to him. He also got in contact with a conveyancer who again indicated that we would have to pay the higher rates.
Can someone explain why? We're able to factor the cost in but I'm not about to blindly pay it if I don't have to. Is it because we're married?
0
Comments
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The replacement exception seems to apply. See for instance SDLTM09800 here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09800 and the write up here: https://www.zoopla.co.uk/discover/buying/stamp-duty-land-tax-3-surcharge-replacement-of-an-only-or-main-residence-and-the-all-important-three-year-rule/0
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