Stamp duty, conflicting information. Do i need to pay?

BL1NKYB1LL

Good Morning all

I would like some advice on wether I need to pay stamp duty or not and at what %. I have had conflicting information from mortgage advisors and seen conflicting information on the net. 

I currently have a buy to let mortgage on a property which is rented out. I do not have a residential mortgage and am currently renting with my partner. We are now looking to buy residential but am unsure if I need to pay the stamp duty? Does being in the current stamp duty holiday or waiting untill after also effect us at all. 

Currently I am under the impression that I would need to pay the extra 3% if we where to buy within the stamp duty holiday. 

If this was the case I believe it may be beneficial to sell the btl and then buy again after the residential buy. 

It would be great if there was something to refer to on the .gov website but I cannot seem to find it. 

Thanks in advanced 
Mark

Doozergirl

There's a very simple answer to that and it would be given by the Stamp Duty Calculator without even digging around.  

https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro

It's in the first paragraph of guidance: 

https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property#what-property-the-higher-rates-apply-to

You own one property.  If you buy another, you will own two.  The 3% would be payable even if your partner doesn't own a property. 

The fact that you don't own a main residence at the moment counts against you.  You're simply increasing the number of properties owned, not replacing a main home for another.  

If your partner bought without you, they would get full relief. 

AdrianC

...and, yes, you do get to take advantage of the stamp duty holiday. The base rate is 0% under £500k. It's just that it's 0%+3% for you, because it's an additional property.

davidmcn

BL1NKYB1LL said:
I have had conflicting information from mortgage advisors and seen conflicting information on the net. 

Generally speaking it's helpful if you can point towards towards the information you've been reading, and then we can figure out whether it's actually wrong or there's something you've been misinterpreting.

BL1NKYB1LL

Thank you for your responses. 

I think I may of been getting confused with the way “residential” is used. When in the link posted above it states “residential property” which I thought it meant if you had a residential mortgage, but I guess this means a property which can be lived in and not linked to any business, no matter what type of mortgage is held. 

davidmcn

BL1NKYB1LL said:

I guess this means a property which can be lived in and not linked to any business, no matter what type of mortgage is held. 

Correct, SDLT has nothing to do with mortgages. Either it's residential (because it's a house or flat), or it's something non-residential.

greatcrested

BL1NKYB1LL said:

If this was the case I believe it may be beneficial to sell the btl and then buy again after the residential buy. 

You can do the maths, but my guess is that the costs of selling and buying would outweigh any SDLT savings.....

Not to mention the hassle.