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First time buyer with B2L

thegentleway
thegentleway Posts: 1,095 Forumite
Part of the Furniture 500 Posts Photogenic Name Dropper
in House buying, renting & selling
I'm looking to buy my first residential property but I already have a B2L, does that mean I have to pay 3% stamp duty?
No one has ever become poor by giving
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Comments

  • Countrysider
    Countrysider Posts: 133 Forumite
    100 Posts Second Anniversary
    edited 17 May 2022 at 4:13PM
    thegentleway said:
    I'm looking to buy my first residential property but I already have a B2L, does that mean I have to pay 3% stamp duty?
    Yes. 

    You will own two properties after the transaction.

    Disposing doesn't mean 'moving' it means 'getting rid of'. The disposal clause only works if you sell your main residence and buy a new main residence. You're not doing that, you're increasing the number of properties you own. 
  • thegentleway
    thegentleway Posts: 1,095 Forumite
    Part of the Furniture 500 Posts Photogenic Name Dropper
    Countrysider said:
    thegentleway said:
    I'm looking to buy my first residential property but I already have a B2L, does that mean I have to pay 3% stamp duty?
    Yes. 

    You will own two properties after the transaction.

    Disposing doesn't mean 'moving' it means 'getting rid of'. The disposal clause only works if you sell your main residence and buy a new main residence. You're not doing that, you're increasing the number of properties you own. 
    ouch, that's not good news. Are there any ways around this?

    No one has ever become poor by giving
  • Slithery
    Slithery Posts: 6,046 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    edited 17 May 2022 at 4:27PM
    Sell the B2L first.
    Also it isn't 3%, it's an additional 3% on what you'd pay if it was your only property.

  • thegentleway
    thegentleway Posts: 1,095 Forumite
    Part of the Furniture 500 Posts Photogenic Name Dropper
    Slithery said:
    Sell the B2L first.
    Also it isn't 3%, it's an additional 3% on what you'd pay if it was your only property.

    You have to sell it first? You can't sell it shortly afterwards and claim it back?
    No one has ever become poor by giving
  • p00hsticks
    p00hsticks Posts: 14,646 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 17 May 2022 at 4:33PM
    thegentleway said:
    Slithery said:
    Sell the B2L first.
    Also it isn't 3%, it's an additional 3% on what you'd pay if it was your only property.

    You can't sell it shortly afterwards and claim it back?
    No, I don't believe you can. If it was your main residence you could, but as it's not you can't. 
  • K_S
    K_S Posts: 6,893 Forumite
    1,000 Posts Fourth Anniversary Photogenic Name Dropper
    edited 17 May 2022 at 4:35PM
    thegentleway said:
    Slithery said:
    Sell the B2L first.
    Also it isn't 3%, it's an additional 3% on what you'd pay if it was your only property.

    You can't sell it shortly afterwards and claim it back?
    @thegentleway Yes, if it was your main residence in the 3 years prior to the sale. Afaik.

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • Slithery
    Slithery Posts: 6,046 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    edited 17 May 2022 at 4:40PM
    No. As it was never your main residence.

    Also you're not a first time buyer. You lost that privilege when you purchased the BTL.

  • thegentleway
    thegentleway Posts: 1,095 Forumite
    Part of the Furniture 500 Posts Photogenic Name Dropper
    What about creating a company and selling the B2L to the company?
    No one has ever become poor by giving
  • MaryNB
    MaryNB Posts: 2,319 Forumite
    1,000 Posts Third Anniversary Name Dropper
    thegentleway said:
    What about creating a company and selling the B2L to the company?
    The limited company would have to pay stamp duty on the transaction at the market value of the property and you may have to pay CGT. 
  • thegentleway
    thegentleway Posts: 1,095 Forumite
    Part of the Furniture 500 Posts Photogenic Name Dropper
    MaryNB said:
    thegentleway said:
    What about creating a company and selling the B2L to the company?
    The limited company would have to pay stamp duty on the transaction at the market value of the property and you may have to pay CGT. 
    Yes indeed but the B2L is much cheaper that the family home so SDLT will be much lower. I will have to pay CGT when I come to sell it anyway.
    No one has ever become poor by giving
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