Welsh Stamp Duty

SDLT_Geek

RJC74 said:

Slithery said:

'Replacing' in the context of LTT means selling. You aren't selling it, it will still be under your ownership.
It would be a pretty obvious loophole if a LL could avoid the extra tax on all their properties by just living in them for a couple of weeks before buying the next one.

I've lived in it for 21 years. I plan to stay in the new house for a long time too.

Thank you all for your responses. I am increasing my number of properties, I just wanted to clarify the rules in Wales as I maintain that 'replacing' my main (in fact only) residence is exactly what I am doing and at no point has anyone said I would have to sell my buy to let to be eligible for a tax refund, only the house that I have lived in.

That is right, it is a property you have lived in as your only or main residence which you need to sell / dispose of to qualify as "replacing" your main residence.  There would be no need to sell your let property.  If you sell / dispose of your only residence then the replacement exception to the 4% surcharge should apply to you.

sheramber

Does this make it clearer?  https://www.stampdutycalculator.org.uk/ltt-second-homes.htm#:~:text=Under the Welsh LTT system,and buy to let property.
Someone who is replacing their main residence can claim a refund of the LTT Surcharge if their old home is sold within 36 months of buying their new one. 
So you pay the duty and can reclaim it when you sell your previous residence. if you sell at the same time as buying the new residence then you you don't need to hand over the money  it as it would be immediately repayable.

steampowered

You are changing your main residence, I can see why you think the rules might not apply.

However, the stamp duty rules are clear that the "replacement of your main residence" exemption does require you to sell the property which is currently your main residence.

gettingtheresometime

SDLT_Geek said:

AdrianC said:

You own A (residence) and B (let).
You are buying C (residence).

Additional Property +3% LTT, every day of the week. You are going from two properties to three.

If you were to sell A within three years of buying C, you could reclaim the additional LTT, because you are replacing your main residence. If you do not sell A, you are clearly not replacing it.

Yes, except the enlightened Welsh have made it 4% extra.

Well we were the first to introduce a no smoking ban indoors & a plastic bag tax so where the Welsh lead the English follow 🤔?

moneysavinghero

Do you have a driveway full of old cars (or should that be 3 driveways full of old cars) because every time you replace your old car with a newer model you keep the old one?

AdrianC

SDLT_Geek said:

AdrianC said:

You own A (residence) and B (let).
You are buying C (residence).

Additional Property +3% LTT, every day of the week. You are going from two properties to three.

If you were to sell A within three years of buying C, you could reclaim the additional LTT, because you are replacing your main residence. If you do not sell A, you are clearly not replacing it.

Yes, except the enlightened Welsh have made it 4% extra.

I thought that was Scotland...?

Ah - Cardiff raised it from 3% last December...

Crashy_Time

Can definitely see it rising further.