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STAMP DUTY LAND TAX FOR ADDITIONAL PROPERTY AS REPLACEMENT OF THE BUYER'S ONLY OR MAIN RESIDENCE
Dogo
Posts: 5 Forumite
My husband and I live abroad in a property that we own and that we are going to sell. We would like to come back to the Uk, where we own a small BTL property. We would temporarily live in the BTL property (after having sold our property abroad) while looking for a bigger property to buy as our main residence in the Uk. We would then let the smaller flat again. Looking if in a case like ours (sell first, but later) it was possible to avoid paying the higher rates of stamp duty land tax, I found that there seem to be 5 conditions which must be fulfilled for the "replacement of only or main residence". We would fulfill the first four conditions but the fifth condition is that "At no time on or after the disposal of the sold dwelling has the buyer (or the buyer’s spouse or civil partner) acquired a major interest in any dwelling with the intention of the buyer living in it as the buyer’s only or main residence". Can anyone please explain what that means? Would the fact that we would live in our BTL property mean that we have "acquired a major interest" in it as our only and main residence? Would it be deemed to be our main residence even if we lived in it only for a few months?
Thank you for your help.
Thank you for your help.
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Comments
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You can only have one main residence at a time in the UK. As long as you actually live in it and can demonstrate that, then you'll be fine. If you intend to buy the second property before you have sold the first, you'll have to pay the additional Stamp Duty. Then if you sell the original property within three years, you can reclaim the additional Stamp Duty.0
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READ THE RULES
in what way have you "acquired" the existing UK property?0 -
PLEASE DON'T SHOUT....
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We bought in 2008. I have read the rules, I was hoping you could clarify them for me! I cannot understand the sentence in inverted comma in my first post and which is taken from HMRC rules about the Stamp Duty surcharge. What does it mean, really?oldbikebloke said:READ THE RULES
in what way have you "acquired" the existing UK property?0 -
The definition of acquire is "buy or obtain (an asset or object) for oneself." As you bought or obtained that BTL beforehand, you can't be buying or obtaining it now.Dogo said:
We bought in 2008. I have read the rules, I was hoping you could clarify them for me! I cannot understand the sentence in inverted comma in my first post and which is taken from HMRC rules about the Stamp Duty surcharge. What does it mean, really?oldbikebloke said:READ THE RULES
in what way have you "acquired" the existing UK property?Everything that is supposed to be in heaven is already here on earth.
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Everything that is supposed to be in heaven is already here on earth.
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Was the buy to let always a buy to let when you bought it or was it originally your main residence before you moved abroad? What I am wondering if you owned the buy to let as a main residence then bought abroad then converted the uk residence mortgage to buy to let? My understanding when I fell into that similar situations years ago was that they will look at the original purchase reason of the buy to let and if it was purchased prior to what you now call family residence then they class it as main residence then you pay higher tax.Initial mortgage bal £487.5k, current £258k, target £243,750(halfway!)
Mortgage start date first week of July 2019,
Mortgage term 23yrs(end of June 2042🙇🏽♀️),Target is to pay it off in 10years(by 2030🥳).MFW#10 (2022/23 mfw#34)(2021 mfw#47)(2020 mfw#136)
£12K in 2021 #54 (in 2020 #148)
MFiT-T6#27
To save £100K in 48months start 01/07/2020 Achieved 30/05/2023 👯♀️
Am a single mom of 4.Do not wait to buy a property, Buy a property and wait. 🤓0 -
It was always a buy to let, we never lived in it. It was actually purchased before our present main residence abroad, but because we we moved and so we heppened to buy our present family residence after the but to let flat.Sistergold said:Was the buy to let always a buy to let when you bought it or was it originally your main residence before you moved abroad? What I am wondering if you owned the buy to let as a main residence then bought abroad then converted the uk residence mortgage to buy to let? My understanding when I fell into that similar situations years ago was that they will look at the original purchase reason of the buy to let and if it was purchased prior to what you now call family residence then they class it as main residence then you pay higher tax.0 -
So, considering we bought in the past and that we are selling our main residence to acquire another main residence we should be allowed to live in it temporarily without having to pay the Stamp Duty surchargeDoozergirl said:
The definition of acquire is "buy or obtain (an asset or object) for oneself." As you bought or obtained that BTL beforehand, you can't be buying or obtaining it now.Dogo said:
We bought in 2008. I have read the rules, I was hoping you could clarify them for me! I cannot understand the sentence in inverted comma in my first post and which is taken from HMRC rules about the Stamp Duty surcharge. What does it mean, really?oldbikebloke said:READ THE RULES
in what way have you "acquired" the existing UK property?0 -
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