Stamp Duty Surcharge relief on main residency & the affects of owning a private buy to let property

WRussell

Hi Guys,

I am currently trying to pursue relief of the higher rate stamp duty on my main residence purchases, mainly the most recent one. I understand there is an ability to claim SDLT relief under particular scenarios where a new main residence is purchased prior or after the sale of your former main residence. Without question, the logic makes perfect sense in that at a point in time you own two properties & therefore are subject to pay the higher rate. My situation however introduces the ownership of a  buy to let property. 

Let me explain my current situation:-

* I purchased my first main residence in Mar 2016 which I lived in for 2 years. After this time I converted the house to a buy to let (In my own name) & moved out of the house. The house is still rented out @ Nov 21.

* In 2018 I purchased my second main residence, which was subject to the higher rate SD. My first question is could this be claimable given given the previous conversion of my main residence to a buy to let?

* I recently sold my second main residence in June 2021 & had a 5 month period at my parents. I purchased my third residential property in Nov 2021 which I am informed will incur the higher rate of 3%. My question here being, although I am replacing my main residence only, (having sold property 2 prior to the purchase of property 3), would I be entitled to a SD relief? And what are the affects of owning a historic buy to let property. My reading tells me this would be treat as a separate entity & not affect my ability to claim relief on the recent replacement of main residence however I can't be sure.

Help would be appreciated.

Cheers
Will

user1977

There's no relief for purchase of your second one - that should have been charged at higher rate as you were increasing the number of houses you owned.

Your next move should only be at standard rate though as you were replacing your main residence (5 months is close enough in time to qualify).

WRussell

Many thanks for your help on this matter. Cheers Will

Snookie12cat

* I purchased my first main residence in Mar 2016 which I lived in for 2 years. After this time I converted the house to a buy to let (In my own name) & moved out of the house. The house is still rented out @ Nov 21.

* In 2018 I purchased my second main residence, which was subject to the higher rate SD. My first question is could this be claimable given given the previous conversion of my main residence to a buy to let?

* I recently sold my second main residence in June 2021 & had a 5 month period at my parents. I purchased my third residential property in Nov 2021 which I am informed will incur the higher rate of 3%. My question here being, although I am replacing my main residence only, (having sold property 2 prior to the purchase of property 3), would I be entitled to a SD relief? And what are the affects of owning a historic buy to let property. My reading tells me this would be treat as a separate entity & not affect my ability to claim relief on the recent replacement of main residence however I can't be sure.

Help would be appreciated.

Cheers
Will

Yes- If you sell your main residence and buy another you will get the extra stamp duty charge, however as long as you sold your main residence within 3 years or purchasing your other, you can claim it back. You have not acquired anymore property, you still have two, so you would be exempt.