Stamp Duty - Buy to Let + First Home

jmd4eva

We have three buy to let properties and which we have paid the stamp duty due on these. We personally live in rented accommodation right now and are buying our first home. I understand that we are not entitled to any first time buyer relief on stamp duty but the solicitor has hit us with having to pay the increased stamp duty rate as we own the buy to lets and currently rent (not a home owner). 

Everywhere on the internet seems to be really misleading so turning to the forum here to see if anyone has any thoughts around this. Our mortgage broker didn't inform this to us when we started the process and now we need to find thousands extra to pay the stamp duty due! 

Snookie12cat

Yes. If you buy a second property, in your case another you must pay the 3% stamp duty, even if it's your first residential house. 

Slithery

You are buying an additional property so the additional SDLT will be due.

980233

jmd4eva said:

We have three buy to let properties and which we have paid the stamp duty due on these. We personally live in rented accommodation right now and are buying our first home. I understand that we are not entitled to any first time buyer relief on stamp duty but the solicitor has hit us with having to pay the increased stamp duty rate as we own the buy to lets and currently rent (not a home owner). 

Everywhere on the internet seems to be really misleading so turning to the forum here to see if anyone has any thoughts around this. Our mortgage broker didn't inform this to us when we started the process and now we need to find thousands extra to pay the stamp duty due! 

Of course you have to pay the extra SDLT. 

Why on earth did you think you were exempt?

dell12

980233 said:

jmd4eva said:

We have three buy to let properties and which we have paid the stamp duty due on these. We personally live in rented accommodation right now and are buying our first home. I understand that we are not entitled to any first time buyer relief on stamp duty but the solicitor has hit us with having to pay the increased stamp duty rate as we own the buy to lets and currently rent (not a home owner). 

Everywhere on the internet seems to be really misleading so turning to the forum here to see if anyone has any thoughts around this. Our mortgage broker didn't inform this to us when we started the process and now we need to find thousands extra to pay the stamp duty due! 

Of course you have to pay the extra SDLT. 

Why on earth did you think you were exempt?

To be fair, if the OP owned the home they were living in already and were selling it, they wouldn't have to pay the 3% surcharge.

I understand why the rules were written as they are, but it always feels tough on a landlord who is renting vs a landlord who is an owner occupier themselves.

SpiderLegs

dell12 said:

980233 said:

jmd4eva said:

We have three buy to let properties and which we have paid the stamp duty due on these. We personally live in rented accommodation right now and are buying our first home. I understand that we are not entitled to any first time buyer relief on stamp duty but the solicitor has hit us with having to pay the increased stamp duty rate as we own the buy to lets and currently rent (not a home owner). 

Everywhere on the internet seems to be really misleading so turning to the forum here to see if anyone has any thoughts around this. Our mortgage broker didn't inform this to us when we started the process and now we need to find thousands extra to pay the stamp duty due! 

Of course you have to pay the extra SDLT. 

Why on earth did you think you were exempt?

To be fair, if the OP owned the home they were living in already and were selling it, they wouldn't have to pay the 3% surcharge.

I understand why the rules were written that they, but it always feels tough on a landlord who is renting vs a landlord who is an owner occupier themselves.

To be fair, they don’t and they’re not.

being a landlord is irrelevant to the pretty basic question of ‘are you increasing the number of properties which you own’. Not sure why that feels especially tough.

Snookie12cat

dell12 said:

980233 said:

jmd4eva said:

We have three buy to let properties and which we have paid the stamp duty due on these. We personally live in rented accommodation right now and are buying our first home. I understand that we are not entitled to any first time buyer relief on stamp duty but the solicitor has hit us with having to pay the increased stamp duty rate as we own the buy to lets and currently rent (not a home owner). 

Everywhere on the internet seems to be really misleading so turning to the forum here to see if anyone has any thoughts around this. Our mortgage broker didn't inform this to us when we started the process and now we need to find thousands extra to pay the stamp duty due! 

Of course you have to pay the extra SDLT. 

Why on earth did you think you were exempt?

To be fair, if the OP owned the home they were living in already and were selling it, they wouldn't have to pay the 3% surcharge.

I understand why the rules were written as they are, but it always feels tough on a landlord who is renting vs a landlord who is an owner occupier themselves.

But they also wouldn't be acquiring another property. It seems unfair but they want to deter people buying another property. I kind of feel like it should be if you dispose of another property (regardless if its your main residence or not) within the time frame you can claim it back, so long as you do not increase your property numbers. 
It isn't though, so the OP will need to find the significant extra stamp duty  

Pixie5740

jmd4eva said:

We have three buy to let properties and which we have paid the stamp duty due on these. We personally live in rented accommodation right now and are buying our first home. I understand that we are not entitled to any first time buyer relief on stamp duty but the solicitor has hit us with having to pay the increased stamp duty rate as we own the buy to lets and currently rent (not a home owner). 

Everywhere on the internet seems to be really misleading so turning to the forum here to see if anyone has any thoughts around this. Our mortgage broker didn't inform this to us when we started the process and now we need to find thousands extra to pay the stamp duty due! 

Your mortgage broker isn’t there is give tax advice, (s)he is there to find you a mortgage. 

The rules are clear (see manual below) and the higher rate of SDLT will apply to your purchase. The only way around this would be to sell all of your BTL by or before completing on the purchase of your new home. 

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

[Deleted User]

If you are a buy to let landlord, you need to be attentive to tax rules both in terms of compliance but also to ensure that you are tax efficient. If you've reached this point without being au fait with second home stamp duty, you need to refocus. 

rexmedorum

as far as I understand it the only way to "avoid" the stamp duty would be to move into one of you buy to lets (and possibly sell it to buy something else after that).
If you ten bought another buy to let you'd again have the extra stamp duty of course, so it probably wouldn't be worth it unless the home you want to live in is very expensive.

SDLT_Geek

rexmedorum said:

as far as I understand it the only way to "avoid" the stamp duty would be to move into one of you buy to lets (and possibly sell it to buy something else after that).
If you ten bought another buy to let you'd again have the extra stamp duty of course, so it probably wouldn't be worth it unless the home you want to live in is very expensive.

Living in a BTL property for a short while in order to gain a fiscal advantage is unlikely to work.  The occupation would lack the required "degree of permanence and expectation of continuity" for it to count as a "residence".