Tricky Stamp Duty Question - Do you know the answer please?

Victoria17

Hello,

I own 4 properties but they're all investments and are all being let.
I live in rented accommodation myself but I now want to buy a home.
I was wondering how much Stamp Duty I would have to pay - whether I would be charged extra because I already own properties, or not.
The wording is giving me hope because it says you need to pay the higher rate if you're buying a Second Home or a Buy to Let.
I'm not buying either. I'll be buying my only home, my first residential purchase. 
But my mortgage adviser thinks I'll have to pay the extra rate.
I'm confused... Does anyone have the answer to the riddle?
Thanks for your help!

SpiderLegs

It’s not that tricky.
yes you have to pay the higher rate.

Flugelhorn

It is an extra property so :
 
"You must pay the higher Stamp Duty Land Tax (SDLT) rates when you buy a residential property (or a part of one) for £40,000 or more, if all the following apply:

• it will not be the only residential property worth £40,000 or more that you own (or part own) anywhere in the world"

MaryNB

Victoria17 said:

The wording is giving me hope because it says you need to pay the higher rate if you're buying a Second Home or a Buy to Let.
I'm not buying either. I'll be buying my only home, my first residential purchase. 
But my mortgage adviser thinks I'll have to pay the extra rate.
I'm confused... Does anyone have the answer to the riddle?
Thanks for your help!

The higher rate is based on additional residential properties, not just BTL or second homes. There is an exemption for replacing your main residence.

See the opening sentence of the following gov.uk page.

https://www.gov.uk/government/publications/stamp-duty-land-tax-higher-rates-on-purchases-of-additional-residential-properties/stamp-duty-land-tax-higher-rates-on-purchases-of-additional-residential-properties

Individuals purchasing a residential property in England, Wales and Northern Ireland who, at the end of the day of the transaction, own 2 or more residential properties and are not replacing a main residence. 

You will own 5 residential properties when you purchase your home - you pay the +3%. You are not replacing your main residence because you do not have a main residence to sell - you cannot avail of the exemption.

Slithery

Not tricky at all. You won't be replacing your main residence by selling it and buying a new one so the additional 3% will be due.

user1977

Victoria17 said:

The wording is giving me hope because it says you need to pay the higher rate if you're buying a Second Home or a Buy to Let.

Only wording in places offering poor quality advice.

Pixie5740

Victoria17 said:

Hello,

I own 4 properties but they're all investments and are all being let.
I live in rented accommodation myself but I now want to buy a home.
I was wondering how much Stamp Duty I would have to pay - whether I would be charged extra because I already own properties, or not.
The wording is giving me hope because it says you need to pay the higher rate if you're buying a Second Home or a Buy to Let.
I'm not buying either. I'll be buying my only home, my first residential purchase. 
But my mortgage adviser thinks I'll have to pay the extra rate.
I'm confused... Does anyone have the answer to the riddle?
Thanks for your help!

It’s not at all tricky and the legislation is clear on the matter. You are purchasing an additional residential property therefore the higher rate of SDLT for the purchase of additional residential properties will apply apply. 

The HMRC manual gives you the definitive answer. 

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09730

Pixie5740

@Victoria17, are you really buying your first residential purchase because in February you posted about a property you lived in 3 years ago and have been letting out ever since? 

https://forums.moneysavingexpert.com/discussion/6239676/penalty-for-expired-consent-to-lease

Victoria17

Pixie5740 said:

@Victoria17, are you really buying your first residential purchase because in February you posted about a property you lived in 3 years ago and have been letting out ever since? 

https://forums.moneysavingexpert.com/discussion/6239676/penalty-for-expired-consent-to-lease

I was trying to simplify my question. That property has long been let out and now has a BTL mortgage attached to it. It's a full blown investment, I don't live in it and never will again. 

Victoria17

Thanks everyone for clarifying. Not what I was hoping for but it's good to know...