Stamp Duty when you have a BTL

SarahWhitesands

Help! I'm really confused about Stamp Duty! 

Long story short... I lived in a flat, met a guy, moved in with him and rented my flat. I remortgaged it to a BTL. 

I then bought a house with the guy, and paid higher rate stamp duty on this because I already owned my flat so this was a 2nd home I guess...

2 years later we split up, I bought another BTL property and ex bought me out and we did a transfer of equity. So I paid higher rate stamp duty again because I still in effect owned the house we had when I bought the flat. The TOE went through about a month after the flat purchase I made.

My question is... am I due a refund as I no longer own the house? Or because I have another BTL and still own another home am i not...?

Next question... I want to buy a home on a residential mortgage now, as I paid higher rate stamp duty on the BTL I bought 6 months ago, will I need to pay it again on a new residential property?

Sorry if that doesn't make sense, as you can probably tell I'm pretty confused about how it works

Thanks! 

SDLT_Geek

SarahWhitesands said:

Help! I'm really confused about Stamp Duty! 

Long story short... I lived in a flat, met a guy, moved in with him and rented my flat. I remortgaged it to a BTL. 

I then bought a house with the guy, and paid higher rate stamp duty on this because I already owned my flat so this was a 2nd home I guess...
Yes, the extra 3% was due because you had interests in two properties and did not count as "replacing" your main residence because you did not sell / dispose of your flat.

2 years later we split up, I bought another BTL property and ex bought me out and we did a transfer of equity. So I paid higher rate stamp duty again because I still in effect owned the house we had when I bought the flat. The TOE went through about a month after the flat purchase I made.
The extra 3% would have been due anyway, given that you also owned the flat.  For a while you had interests in three properties.

My question is... am I due a refund as I no longer own the house? Or because I have another BTL and still own another home am i not...?
The refund is not due on the purchase of the BTL property as when you bought it you did not intend to live in it as your only or main residence, so you are not now treated as "replacing your main residence" for that purchase.

Next question... I want to buy a home on a residential mortgage now, as I paid higher rate stamp duty on the BTL I bought 6 months ago, will I need to pay it again on a new residential property?

Sorry if that doesn't make sense, as you can probably tell I'm pretty confused about how it works

Thanks! 

It will be important to know when you did the transfer of equity in the jointly owned house and moved out of the house.  If it was less than three years before the upcoming purchase, then that might help you for the upcoming purchase.  It might well then be that you meet the conditions for the "replacement exception" for the upcoming purchase as set out here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09800.

SuseOrm

Its replacing your primary residence so which you’ll not benefit from bring a first time buyer its not an additional property either.  

saajan_12

Qn 1.
Where did you live once you split up? You say you bought a BTL, but did you then live there, or rent elsewhere, or stay with family? 
-> That will determine whether you can get a refund now on the last purchase you made. 

Qn 2.
How long ago did you move out of the joint house, when did you transfer the equity and when do you plan to purchase the new residence? 
-> If that's within certain timeframes, you may be able to avoid the extra 3% SDLT on the purchase on the basis of replacing your previous main residence (the one with the ex). 

SarahWhitesands

Thanks guys.  When we split up I moved in with family, that was June last year and was the same month I got the BTL. The TOE went through in around September.

I'd like to find a place as soon as possible.  I paid higher rate Stamp Duty on the BTL in June.  The place I want to buy now would replace that main residence that I left in June last year