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Stamp Duty Rate
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lietuve
Posts: 6 Forumite
We are remortgaging our current residence and turning it into a Buy To Let, at the same house we are buying a house, which will become our main residence straight after purchase. One set of solicitors told us Stamp Duty will be £20.750, as we will have 1 residence, but second solicitors are saying we will have to pay £38k, because it is our second property.
Even MSE website’s calculator gives me figure of £20.750. It is some sort if loophole I think, but where can I find the truth?
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It sounds as if the extra 3% SDLT will be due because you will have two properties and do not meet the conditions to count as replacing your only or main residence.lietuve said:We are remortgaging our current residence and turning it into a Buy To Let, at the same house we are buying a house, which will become our main residence straight after purchase. One set of solicitors told us Stamp Duty will be £20.750, as we will have 1 residence, but second solicitors are saying we will have to pay £38k, because it is our second property.Even MSE website’s calculator gives me figure of £20.750. It is some sort if loophole I think, but where can I find the truth?0 -
By using an online calculator which doesn't dumb everything down to a useless degree. Try the one on HMRC's website:lietuve said:Even MSE website’s calculator gives me figure of £20.750. It is some sort if loophole I think, but where can I find the truth?
https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro
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It’s not that difficult.
at the end of the day on which you buy the new house to live in, will you own more than one residential property?
if yes, then the higher rate (3% surcharge) applies. UNLESS……
are you buying a new main residence and selling a previous main residence? This gives you a get-out from the 3% surcharge, called the replacement of main residence exemption. That’s the only get out. Not doing that? Then the surcharge applies
some people, including solicitors, get confused about what replacing a main residence means. The law is clear - it doesn’t mean moving house, it specifically involves buying one property and selling another. You aren’t doing this so you’ll pay the higher rate.2 -
Thanks Everyone. Used HMRC calculator and now I know for sure £38k it is 😥0
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