Would I need to pay enhanced stamp duty?

Jaguar_Skills

I will try and keep this short....
We have a conservatory with cracks in either end due to indaequate foundations and incorrect construction methods (previous vendor).  We claimed on our insurance for a modest amount (£15k) for dealing with the issue.   This was probably naive of us given the works involved. 
Fast forward to now, we are looking to sell and obviously it is proving tricky. 
One of the options we thought about was selling our current buy to let flat, and turning the house we live in into a Buy to Let.   I can't seem to find a definitive answer about if we bought another home whether the enhanced SDLT would apply, given we are just replacing (effectively) one buy to let with another? 
Does anyone have any thoughts or advice as to how we might get round the enhanced SDLT if it even applies? 

grumiofoundation

To clarify you currently own 

Property A (buy to let)
Property B (current main residence)

Propose to buy Property C and sell Property A?


In this case I believe unless property A had previously been main residence (within last 3 years I think is timescale - sure I will be corrected if not) then you would have to pay the +3% SDLT. 

But if you sell property B within 3 years of purchase of property C would be able to claim back the +3% SDLT. 

davidmcn

Jaguar_Skills said:

Does anyone have any thoughts or advice as to how we might get round the enhanced SDLT if it even applies? 

You move into your existing BTL for long enough for it to become your main residence before you sell. Otherwise yes it would apply.

AdrianC

So you currently own flat A (let) and house B (residence).

You would buy C.
C would be your residence, B would be retained but no longer your residence.
You would sell A at some point, probably prior to the purchase of C.

Yes, however you time the sale of A, you're paying the +3%.

1. If you sell A before the purchase of C, then at the time of the purchase of C, you would go from one property (B) to two (B+C).
2. If you chain A and C, then you are staying with two properties (A+B -> B+C), but you are not selling your previous residence (B). 
3. If you sell A after the purchase of C, then at the time of the purchase of C, you would go from two properties (A+B) to three (A+B+C).
Either 1 or 3, you're increasing your stock of properties.
In 3, you can't reclaim the +3% on the sale of A, because A wasn't your residence.

The only way you get round the +3% is if you sell B.

Jaguar_Skills

Thanks everyone.   Whilst not what I wanted to hear, it is really useful to know there is no way round it. 
Guess it then comes down to working out whether its worth paying the additional enhanced SDLT into the numbers. 

grumiofoundation

Jaguar_Skills said:

Thanks everyone.   Whilst not what I wanted to hear, it is really useful to know there is no way round it. 
Guess it then comes down to working out whether its worth paying the additional enhanced SDLT into the numbers. 

There are 2 ways round it as explained above. 

Sell property B (current main residence) before or within 3 years of buying new property.