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Stamp duty question

I am buying a flat which has tenants in there until June 2020. I will complete around December hopefully. Once the tenants contract ends I plan to move into the property.


I currently own no other property although I am not a first time buyer.


Do I need to pay 3% extra stamp duty for Buy-To-Let on this property as I will be a landlord until the tenant's contract finishes?

Comments

  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Warren1989 wrote: »
    Do I need to pay 3% extra stamp duty for Buy-To-Let on this property as I will be a landlord until the tenant's contract finishes?

    No such thing as "3% extra stamp duty for Buy-To-Let". There's 3% extra for buying an additional property (irrespective of what you want to use it for). But that won't apply to you if you don't currently own any other property.
  • Have you experience of being a LL...if not I would hope that you are taking lots of advice on your new career move.

    Best of luck!
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  • davidmcn wrote: »
    No such thing as "3% extra stamp duty for Buy-To-Let". There's 3% extra for buying an additional property (irrespective of what you want to use it for). But that won't apply to you if you don't currently own any other property.


    Hi Davidmcn


    Do you know if this is true in Wales also? It seems less clear.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Warren1989 wrote: »
    Do you know if this is true in Wales also? It seems less clear.
    Different regime in Wales (and Scotland) but the same principle applies.

    Explained here (and seems clear enough to me!):

    https://gov.wales/land-transaction-tax-rates-and-bands#section-8924
  • davidmcn wrote: »
    Different regime in Wales (and Scotland) but the same principle applies.

    Explained here (and seems clear enough to me!):

    https://gov.wales/land-transaction-tax-rates-and-bands#section-8924


    I believe I was getting hung up on the "buy-to-let" wording elsewhere when I should have been simply looking at the following:

    When the higher rates apply:

    You will usually pay higher LTT rates when both of the following applies:
    • you buy a residential property worth £40,000 or more
    • you already own 1 or more other properties (see below)
    Bullet point 2 rules me out of "higher rates" and thus no LTT to pay.


    Simple, right?
  • SDLT_Geek
    SDLT_Geek Posts: 2,988 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    Right. Assuming you do not have a spouse or civil partner who owns a property.
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