Stamp Duty on re-mortgaged 2nd house?

SuseOrm

Surely if you sold house B,  Buy House A and then buy something remarkably similar in a similar price range to B that could work ?  

SuseOrm

Ms A owns both a main residence and a second home. She sells her main residence and purchases a new one. Although she has two properties at the end of the day of the transaction, she has replaced her main residence so the higher rates will not apply.

From wards.uk.com solicitors 

Slithery

SuseOrm said:

Ms A owns both a main residence and a second home. She sells her main residence and purchases a new one. Although she has two properties at the end of the day of the transaction, she has replaced her main residence so the higher rates will not apply.

From wards.uk.com solicitors

Correct. As explained earlier the extra 3% is for 'additional properties'.
Mrs A owns 2 properties before the transaction and 2 afterwards so there are no 'additional properties' taken into consideration as she has replaced (sold) her main residence to move to a different main residence.
This isn't what is happening in the OP's situation.

SuseOrm

Slithery said:

SuseOrm said:

Ms A owns both a main residence and a second home. She sells her main residence and purchases a new one. Although she has two properties at the end of the day of the transaction, she has replaced her main residence so the higher rates will not apply.

From wards.uk.com solicitors 

SuseOrm said:
https://www.capextax.com/news/what-is-the-definition-of-main-residence-for-stamp-duty-land-tax

That doesnt seem to always be the case.  

Correct. As explained earlier the extra 3% is for 'additional properties'.
Mrs A owns 2 properties before the transaction and 2 afterwards so there are no 'additional properties' taken into consideration as she has replaced (sold) her main residence to move to a different main residence.
This isn't what is happening in the OP's situation.

So there has to be a way around this

Slithery

SuseOrm said:

Slithery said:

SuseOrm said:

Ms A owns both a main residence and a second home. She sells her main residence and purchases a new one. Although she has two properties at the end of the day of the transaction, she has replaced her main residence so the higher rates will not apply.

From wards.uk.com solicitors 

SuseOrm said:
https://www.capextax.com/news/what-is-the-definition-of-main-residence-for-stamp-duty-land-tax

That doesnt seem to always be the case.  

Correct. As explained earlier the extra 3% is for 'additional properties'.
Mrs A owns 2 properties before the transaction and 2 afterwards so there are no 'additional properties' taken into consideration as she has replaced (sold) her main residence to move to a different main residence.
This isn't what is happening in the OP's situation.

So there has to be a way around this

The only way around it is for the OP to sell their current main residence and only end up owning one property.
Or do you think that the HMRC are stupid and haven't thought of this obvious loophole?

I suggest that you fully read the SDLT manual before suggesting any other ideas you have which won't work...
https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual

sheramber

But the OP doesn't' want to sell house B  so  there is no way round it.

Also, the OP hasn't' said what the value of house B is. It may be more than house A., so he may be paying the extra 3% on the cheaper house. 

Snookie12cat

SuseOrm said:

Slithery said:

SuseOrm said:

Ms A owns both a main residence and a second home. She sells her main residence and purchases a new one. Although she has two properties at the end of the day of the transaction, she has replaced her main residence so the higher rates will not apply.

From wards.uk.com solicitors 

SuseOrm said:
https://www.capextax.com/news/what-is-the-definition-of-main-residence-for-stamp-duty-land-tax

That doesnt seem to always be the case.  

Correct. As explained earlier the extra 3% is for 'additional properties'.
Mrs A owns 2 properties before the transaction and 2 afterwards so there are no 'additional properties' taken into consideration as she has replaced (sold) her main residence to move to a different main residence.
This isn't what is happening in the OP's situation.

So there has to be a way around this

The really isn't. 
I have been lumped with a £24k stamp duty bill because I have a new house before selling my current one, just like OP. 
Unlike OP I will be selling my previous main residence and then I can claim £15k back. 

Seems like a great and easy idea just turn your old house into a BTL, but any profit can easily be lost in the additional stamp duty alone depending on the value of the new house.

TheMightyShowerHead

Could you purchase a second property, pay the additional stamp duty, let the original property for 2.5 years and then reclaim the additional stamp duty? Technically you've still disposed of your main residence, allbeit belatedly. (Assuming the sale goes to plan, or it could be an expensive mistake)

Slithery

TheMightyShowerHead said:

Could you purchase a second property, pay the additional stamp duty, let the original property for 2.5 years and then reclaim the additional stamp duty?

Only if they sell it within 3 years.

SuseOrm

TheMightyShowerHead said:

Could you purchase a second property, pay the additional stamp duty, let the original property for 2.5 years and then reclaim the additional stamp duty? Technically you've still disposed of your main residence, allbeit belatedly. (Assuming the sale goes to plan, or it could be an expensive mistake)

I think if there was ever a time to sell it would be now not in 2 1/2 years time