Additional 3% SDLT

User_310521

I have a question regarding the additional 3% SDLT.

I bought a small flat in 2016 on my name only. On 2019, I bought another (slightly bigger) flat, together with my (unmarried) partner  and we paid the additional 3% SDLT. We then moved in and it became our main residence since then. 

We're now thinking to buy a bigger flat to live in in the future and sell our current flat. We would be replacing our main residence so my understanding is that the 3% SDLT surcharge would not apply, am I correct?

SDLT_Geek

KikeLondon said:

I have a question regarding the additional 3% SDLT.

I bought a small flat in 2016 on my name only. On 2019, I bought another (slightly bigger) flat, together with my (unmarried) partner  and we paid the additional 3% SDLT. We then moved in and it became our main residence since then. 

We're now thinking to buy a bigger flat to live in in the future and sell our current flat. We would be replacing our main residence so my understanding is that the 3% SDLT surcharge would not apply, am I correct?

That is right.  If you are selling your current home, the 3% surcharge should not apply to the purchase of a home for you to live in.

User_310521

Thanks. Would that be still the case, if we sell our main residence and had to move temporarily (3-6 months maximum) to my first (smaller) flat until we complete on the new one?

SDLT_Geek

KikeLondon said:

Thanks. Would that be still the case, if we sell our main residence and had to move temporarily (3-6 months maximum) to my first (smaller) flat until we complete on the new one?

Yes, that would still be the case.  But HMRC’s .gov.uk guidance is misleading on this point.  You are better looking at the HMRC Manual in SDLTM09800.

davilown

KikeLondon said:y

Thanks. Would that be still the case, if we sell our main residence and had to move temporarily (3-6 months maximum) to my first (smaller) flat until we complete on the new one?

Yes it would but I’m sure @SDLT_Geek will confirm shortly