Second Home Stamp Duty/LLBT & old residence switched to rental

SFitz

Hi - I know this topic has been raised many times but I can't find my specific situation online or on the detailed guide/manual on the government website:

- I live in Scotland
- I own my own property (first & only property I've bought) and have used it as my main residence the whole time.
- I want to buy a new property which will become my new main residence
- I want to keep my current property but switch it over to a rental property.

Will I pay the extra LBTT on the new property I plan to buy?

If yes, is there any way to avoid this? I understand I can gift the property to some one or sell the old home within 3 years and claim a refund, is this right? I plan to buy the house with my first-time-buyer partner (we're not married and don't plan to be) so i think i could also avoid the tax if he just brought the property in his own name but ideally I would also like to be on the mortgage.

If anyone is able to help that would be great!

00ec25

SFitz wrote: »

Hi - I know this topic has been raised many times but I can't find my specific situation online or on the detailed guide/manual on the government website:
- I live in Scotland

ok, Scotland, so did you read more than one word of the Scottish Frequently Asked Questions? Yours is the single most obvious scenario going....

SFitz wrote: »

- I want to buy a new property which will become my new main residence
- I want to keep my current property but switch it over to a rental property.

Will I pay the extra LBTT on the new property I plan to buy?

FAQ
2.06 Acquiring next main residence; choosing to rent out previous main residence

https://www.revenue.scot/land-buildings-transaction-tax/frequently-asked-questions/additional-dwelling-supplement-examples

of course you (both) will pay ADS if you buy jointly with him

SFitz wrote: »

I understand I can gift the property to some one or sell the old home within 3 years and claim a refund, is this right?

no it is wrong - read the FAQ

2.05 Claiming a repayment of the Additional Dwelling Supplement
https://www.revenue.scot/land-buildings-transaction-tax/frequently-asked-questions/additional-dwelling-supplement-examples

SFitz wrote: »

ideally I would also like to be on the mortgage

so go find a mortgage that allows that then. Oh and by the way, as you will doubtless expect to receive a share of the money when the property is sold, you will still be liable for ADS because you will have a beneficial interest in the property - that makes you an "owner" even if not on the legal title

SFitz

Hi - thanks very much for your help - you've answered/directed me to all of the answers. No I read zero words of the Scottish Frequently Asked Questions, as you can tell by my questions, because I didn't have the link to that/see it online/see it linked on the Gov website where I was looking. Thanks for your help regardless!