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Stamp Duty - 2nd Home

ianpalmer2007
ianpalmer2007 Posts: 106 Forumite
Part of the Furniture 10 Posts Combo Breaker
in House buying, renting & selling
We have had a flat that was originally mine before we got married that we have now been renting out for 10 years. We also have a small holiday home in Spain.
After my recent heart bypass we wish to move our main residence (a top floor flat with no lift) to a ground floor flat in the same area.

As it is our main residence do we have to pay the 2nd property stamp duty rate or is there any way around it?
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Comments

  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If you mean you also own your main residence, and your plan is to sell it and simultaneously buy a new main residence, then this is an exception from the 2nd property stamp duty rate and normal rates will apply.
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    Only way around it is to sell all of your current properties on the same day you complete or you will have to pay the additional stamp duty.

    You can sell the others after and claim a refund, within 2 or 3 years I believe.
  • ianpalmer2007
    ianpalmer2007 Posts: 106 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Yes, that is precisely what we would intend to do.

    Many thanks indeed.
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    davidmcn wrote: »
    If you mean you also own your main residence, and your plan is to sell it and simultaneously buy a new main residence, then this is an exception from the 2nd property stamp duty rate and normal rates will apply.


    Nope, they have another property abroad as well.
  • ianpalmer2007
    ianpalmer2007 Posts: 106 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Sorry, I replied to davidmcn whose reply seemed to clarify the matter but the foxy-stoat subsequent reply has now confused me.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    foxy-stoat wrote: »
    Nope, they have another property abroad as well.

    I don't think that makes a difference, but prepared to be proved wrong.
  • ianpalmer2007
    ianpalmer2007 Posts: 106 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Just found this on Zoopla that states it is from the HMRC website:

    "A owns both a main residence and a second home. She sells her main residence and purchases a new one. Although she has two properties at the end of the day of the transaction, she has replaced her main residence so the higher rates will not apply."
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    You + Wife are viewed as a single unit for SDLT.

    You (plural) currently own property A (flat, not main home) and property B (Spain, not main home).
    Your main residence is currently property C, and you want to buy property D as your new main residence.

    But you don't say if you own C or not...

    If you do, then sell C and buy D - no +3%.
    If you won't/can't sell C (perhaps you're renting it, perhaps you want to let it out), then buying D will be an additional property so +3%.
    If you don't own C, and don't want to pay the +3% on the purchase of D, then you must sell A and B before buying D.
  • ianpalmer2007
    ianpalmer2007 Posts: 106 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    We do own A, B & C and want to sell C to purchase D
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    There y'go, then. Nice and simple. Sell C, buy D, no +3%, because you're simply changing your owned primary residence. A and B are irrelevant.
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