Second property stamp duty

charley991

Hi everyone,

I’ve asked several solicitors this question and can’t seem to get an actual confirmed correct answer so coming on here as a last resort really. Circumstances are:-
- first time house purchased by C in 2010
- in 2019 I moved in with partner to house owned by K and we got married in jan 2020 - this is our main residence 
- residential mortgage on house owned by C was put on ‘consent to let’ for 12 months with tennants
- house owned by C recently moved onto buy-to-let mortgage
- Now want to sell house owned by K and purchase new house (whilst keeping house owned by C)

Is any stamp duty payable? We were initially told no because we are selling main residence to purchase a new main residence but another solicitor has said that because house owned by C has not been on a buy to let mortgage for 12 months then we will have to pay.

I need Martin Lewis to help!

dimbo61

Will "C" be on deeds of 2 properties !
Yes so C now owns 2 properties therefore 3% extra stamp duty payable.
Does not matter if residential or BTL mortgage.
You are saving some stamp duty if you buy in next few months in the stamp duty holiday 

sheramber

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09810
se example 2

charley991

sheramber said:

se example 2

Thanks
i don’t think we fit this example or any others as we are married?

Angela_D_3

dimbo61 said:

Will "C" be on deeds of 2 properties !
Yes so C now owns 2 properties therefore 3% extra stamp duty payable.
Does not matter if residential or BTL mortgage.
You are saving some stamp duty if you buy in next few months in the stamp duty holiday 

Are they ?  I thought it was the full 3% on the second property 

[Deleted User]

charley991 said:

Hi everyone,

I’ve asked several solicitors this question and can’t seem to get an actual confirmed correct answer so coming on here as a last resort really. Circumstances are:-
- first time house purchased by C in 2010
- in 2019 I moved in with partner to house owned by K and we got married in jan 2020 - this is our main residence 
- residential mortgage on house owned by C was put on ‘consent to let’ for 12 months with tennants
- house owned by C recently moved onto buy-to-let mortgage
- Now want to sell house owned by K and purchase new house (whilst keeping house owned by C)

Is any stamp duty payable? We were initially told no because we are selling main residence to purchase a new main residence but another solicitor has said that because house owned by C has not been on a buy to let mortgage for 12 months then we will have to pay.

I need Martin Lewis to help!

I would have thought that because you are disposing of your main residence lived in with K, second home stamp duty rates will not apply. What matters is where you were actually resident in the same house owned by K and married to K. The fact that a residential mortgage was in place on the other property does not make it your main residence.

AdrianC

charley991 said:

- first time house purchased by C in 2010
- in 2019 I moved in with partner to house owned by K and we got married in jan 2020 - this is our main residence 
- residential mortgage on house owned by C was put on ‘consent to let’ for 12 months with tennants
- house owned by C recently moved onto buy-to-let mortgage
- Now want to sell house owned by K and purchase new house (whilst keeping house owned by C)

Is any stamp duty payable? We were initially told no because we are selling main residence to purchase a new main residence but another solicitor has said that because house owned by C has not been on a buy to let mortgage for 12 months then we will have to pay.

House 1 bought 2010. Primary residence for C until 2019.
House 2 bought some time prior to 2019. Primary residence for K, then C+K (married couple).
House 2 being sold, house 3 being bought as PR. House 1 being retained.

No +3%.

Married couple so single unit. Selling previous PR, buying replacement PR. The mortgage status on any property is completely irrelevant to SDLT.

gwilson30019

I am struggling with this too as I don’t feel I fit into any of the examples on the HMRC website.
I am married.
Myself and my wife own a flat which was once our main residence and was converted to a buy to let in May - we have not lived in this since August 2019.
We are currently renting and working in London (which is currently our main residence) but are looking to buy a main residence in Leeds.
My question is, do we need to pay stamp duty on purchasing a new home (which will be out main residence)? Or will we need to pay the stamp duty and sell the flat to reclaim the SDLT?

[Deleted User]

gwilson30019 said:

I am struggling with this too as I don’t feel I fit into any of the examples on the HMRC website.
I am married.
Myself and my wife own a flat which was once our main residence and was converted to a buy to let in May - we have not lived in this since August 2019.
We are currently renting and working in London (which is currently our main residence) but are looking to buy a main residence in Leeds.
My question is, do we need to pay stamp duty on purchasing a new home (which will be out main residence)? Or will we need to pay the stamp duty and sell the flat to reclaim the SDLT?

Moving from rented to purcashed residential will incur second home stamp duty. Disposal of the btl flat will not enable you to reclaim. You can only sell it first, then buy your home and avoid second home stamp duty in that way.

gwilson30019

brett19852010 said:

gwilson30019 said:

I am struggling with this too as I don’t feel I fit into any of the examples on the HMRC website.
I am married.
Myself and my wife own a flat which was once our main residence and was converted to a buy to let in May - we have not lived in this since August 2019.
We are currently renting and working in London (which is currently our main residence) but are looking to buy a main residence in Leeds.
My question is, do we need to pay stamp duty on purchasing a new home (which will be out main residence)? Or will we need to pay the stamp duty and sell the flat to reclaim the SDLT?

Moving from rented to purcashed residential will incur second home stamp duty. Disposal of the btl flat will not enable you to reclaim. You can only sell it first, then buy your home and avoid second home stamp duty in that way.

Thanks for your reply.
Can you explain why or point me to the area of the HMRC site that outlines I won’t be able to reclaim the SDLT on sale of the BTL?

SpiderLegs

gwilson30019 said:

[Deleted User] said:

gwilson30019 said:

I am struggling with this too as I don’t feel I fit into any of the examples on the HMRC website.
I am married.
Myself and my wife own a flat which was once our main residence and was converted to a buy to let in May - we have not lived in this since August 2019.
We are currently renting and working in London (which is currently our main residence) but are looking to buy a main residence in Leeds.
My question is, do we need to pay stamp duty on purchasing a new home (which will be out main residence)? Or will we need to pay the stamp duty and sell the flat to reclaim the SDLT?

Moving from rented to purcashed residential will incur second home stamp duty. Disposal of the btl flat will not enable you to reclaim. You can only sell it first, then buy your home and avoid second home stamp duty in that way.

Thanks for your reply.
Can you explain why or point me to the area of the HMRC site that outlines I won’t be able to reclaim the SDLT on sale of the BTL?

The BTL is not your main residence.

https://www.gov.uk/government/publications/stamp-duty-land-tax-apply-for-a-repayment-of-the-higher-rates-for-additional-properties