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Stamp Duty on additional property

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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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Comments

  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    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. 
    What wording? The additional rate will apply, you're buying an additional property (and not selling your previous main residence).
  • 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!
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    but his argument is that we don't have a main residence to sell.
    Get him on here to explain what on earth he means then. I don't follow.
  • 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.


  • jon81uk
    jon81uk Posts: 3,882 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    You pay the 3% on any second or additional (third, fourth etc) residential property you own, it doesn't matter what you live in.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper

    This is the wording form.gov. We have sold our main residence, but it was many years ago

    Yes, it needs to be a sale in the past three years. Your current main residence is the place you're renting.
  • SDLT_Geek
    SDLT_Geek Posts: 2,879 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    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? 
    You are right, your husband is wrong.
  • D.L
    D.L Posts: 137 Forumite
    100 Posts First Anniversary Name Dropper
    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. 
    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).
    Which of us is right? 
    You are!
  • saajan_12
    saajan_12 Posts: 4,981 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    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.
    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!
    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. 
  • Grumpy_chap
    Grumpy_chap Posts: 18,163 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    We sold our main residence 8 years ago 
    You only have three years to sell and then re-buy and avoid the second property rate of SDLT under main residence relief.
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