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Stamp Duty on additional property
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whitefuschia
Posts: 48 Forumite
We have a flat that we let, which has never been used as our main home. We sold our main residence 8 years ago and have been renting since then. We are buying a house soon, and I think we have to pay the 3% additional tax because we already own a property, but my husband thinks we don't have to because we are buying our main property and have never used the other flat as a main property (we've got the tax returns to prove this), which is what the wording on the .Gov website seems to say.
Which of us is right?
Which of us is right?
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What wording? The additional rate will apply, you're buying an additional property (and not selling your previous main residence).whitefuschia said:my husband thinks we don't have to because we are buying our main property and have never used the other flat as a main property, which is what the wording on the .Gov website seems to say.1 -
but his argument is that we don't have a main residence to sell. I think he's wrong, btw, but it would be great if he was right!0
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Get him on here to explain what on earth he means then. I don't follow.whitefuschia said:but his argument is that we don't have a main residence to sell.1 -
This is the wording form.gov. We have sold our main residence, but it was many years ago
You will not pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold.
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You pay the 3% on any second or additional (third, fourth etc) residential property you own, it doesn't matter what you live in.0
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Yes, it needs to be a sale in the past three years. Your current main residence is the place you're renting.whitefuschia said:This is the wording form.gov. We have sold our main residence, but it was many years ago
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You are right, your husband is wrong.whitefuschia said:We have a flat that we let, which has never been used as our main home. We sold our main residence 8 years ago and have been renting since then. We are buying a house soon, and I think we have to pay the 3% additional tax because we already own a property, but my husband thinks we don't have to because we are buying our main property and have never used the other flat as a main property (we've got the tax returns to prove this), which is what the wording on the .Gov website seems to say.
Which of us is right?
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It was your main residence 8 years ago but it's not anymore. It doesn't keep some kind of special status indefinitely. You are buying a second property (P2) so you need to pay the additional stamp duty. If you later bought another property (P3), you would again have to pay the additional stamp duty. You could get a refund on this if you then sell P2 within 3 years. You couldn't get a refund on P3 by selling P1 (the existing buy-to-let property).whitefuschia said:We sold our main residence 8 years ago and have been renting since then. We are buying a house soon, and I think we have to pay the 3% additional tax because we already own a property, but my husband thinks we don't have to because we are buying our main property and have never used the other flat as a main property (we've got the tax returns to prove this), which is what the wording on the .Gov website seems to say.
You are!whitefuschia said:Which of us is right?
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whitefuschia said:
This is the wording form.gov. We have sold our main residence, but it was many years ago
You will not pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold.
The wording in the .gov website is correct. If don't have a main residence to sell, then you're not selling a main residence. That exception doesn't apply to you.whitefuschia said:but his argument is that we don't have a main residence to sell. I think he's wrong, btw, but it would be great if he was right!1 -
You only have three years to sell and then re-buy and avoid the second property rate of SDLT under main residence relief.whitefuschia said:We sold our main residence 8 years ago1
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