Additional SLDT?

dlipner

Hi and happy Christmas to everyone here.

This is my first post so go easy on me, I have tried to see if its been covered before, but a quick forum search didn't seem to help me.

I am wondering if I am liable to pay additional stamp duty on a house I am buying with my partner, I think I know the answer but I thought I would just run it past the wise heads here to check I'm correct.

My situation is I have a flat which I used to live in, but have let it out (on a BTL mortgage) as I have moved in with my partner to rented accommodation.

We now plan to buy a house together, is this purchase liable for additional stamp duty?

Thanks in advance and please let me know if more info is required.

[Deleted User]

yes.  It will be your 2nd property and you are not selling your main residence so additional stamp duty will be payable

Doozergirl

When did you move out of the property? 

[Deleted User]

Doozergirl said:

When did you move out of the property? 

wouldnt that only be relevant if they were selling it?  I think there is a time frame when it can still be called a main residence but it would need to be sold surely?

[Deleted User]

dlipner said:

Hi and happy Christmas to everyone here.

This is my first post so go easy on me, I have tried to see if its been covered before, but a quick forum search didn't seem to help me.

I am wondering if I am liable to pay additional stamp duty on a house I am buying with my partner, I think I know the answer but I thought I would just run it past the wise heads here to check I'm correct.

My situation is I have a flat which I used to live in, but have let it out (on a BTL mortgage) as I have moved in with my partner to rented accommodation.

We now plan to buy a house together, is this purchase liable for additional stamp duty?

Thanks in advance and please let me know if more info is required.

Strange you couldn’t find similar threads as this topic has been done to death. Assuming you are keeping the BTL property and that it’s worth more than £40k the higher rate of SDLT will apply because you are purchasing an additional residential property. 

SDLT_Geek

Deleted_User said:

Doozergirl said:

When did you move out of the property? 

wouldnt that only be relevant if they were selling it?  I think there is a time frame when it can still be called a main residence but it would need to be sold surely?

There is a relevance.  If OP had lived in the old property as OP's only or main residence within the three years before the completion of the purchase of the new property, then OP might be entitled to recover the extra 3% SDLT if OP sells the old property within three years of buying the new property.

dlipner

SDLT_Geek said:

Deleted_User said:

Doozergirl said:

When did you move out of the property? 

wouldnt that only be relevant if they were selling it?  I think there is a time frame when it can still be called a main residence but it would need to be sold surely?

There is a relevance.  If OP had lived in the old property as OP's only or main residence within the three years before the completion of the purchase of the new property, then OP might be entitled to recover the extra 3% SDLT if OP sells the old property within three years of buying the new property.

I've let the house for 12 months to date, having lived in it prior to letting it. 

I plan to sell the original property and claim the 3% additional stamp duty on the new purchase. I think this should be possible.

Sorry if this topics been done to death,  a search didn't help when looking previously 

CSL0183

The 3% additional tax will apply on the date of purchase yes. However, if you sell that BTL property within 3yrs you will have that 3% additional tax refunded. 

Unless sold prior to purchase though, the 3% additional tax is due.