Stamp duty when moving regularly

MarkymarkUK

If someone owns a second property iE BTL and also a main home and then buys another home without selling their main residence, then the higher rate of stamp is due. This can be claimed back if the previous home is sold within 3 years.

My question is relation to someone who moves regularly IE if I bought a new home and sold my previous one then I would pay the standard rate of duty, but if I moved again with a short time iE 1 to 3 years, sold my previous home, would I have to pay stamp duty each time or is there an allowance for regular movers? Seems unfair that if someone moved 3 times in three years they would pay 3 x stamp?

user1977

No, stamp duty has always been a tax on the purchase - doesn't matter how long you own the property, whether it's a lifetime or a week.

One of the reasons why it wouldn't generally be considered "money-saving" to be buying a new place every year!

MarkymarkUK

I realise it’s only the higher rate part of the duty that can be reclaimed, not all of it. 

Slinky

If you're buying and selling that quickly on a regular basis, are you doing this just because you get bored and like to move house, or is this part of a strategy to buy cheap add value and make a profit? On that basis you're lucky if you don't get caught with it being seen as a business and paying CGT you're getting the benefit at the moment of PPR relief.

To expect a 'frequent movers' stamp duty discount is, shall we say, wildly optimistic.

badger09

Slinky said:

If you're buying and selling that quickly on a regular basis, are you doing this just because you get bored and like to move house, or is this part of a strategy to buy cheap add value and make a profit? On that basis you're lucky if you don't get caught with it being seen as a business and paying CGT you're getting the benefit at the moment of PPR relief.

To expect a 'frequent movers' stamp duty discount is, shall we say, wildly optimistic.

Erm … that would be subject to Income tax, rather than CGT. 

Slinky

badger09 said:

Slinky said:

If you're buying and selling that quickly on a regular basis, are you doing this just because you get bored and like to move house, or is this part of a strategy to buy cheap add value and make a profit? On that basis you're lucky if you don't get caught with it being seen as a business and paying CGT you're getting the benefit at the moment of PPR relief.

To expect a 'frequent movers' stamp duty discount is, shall we say, wildly optimistic.

Erm … that would be subject to Income tax, rather than CGT. 

Thanks for the correction.

MarkymarkUK

Slinky said:

If you're buying and selling that quickly on a regular basis, are you doing this just because you get bored and like to move house, or is this part of a strategy to buy cheap add value and make a profit? On that basis you're lucky if you don't get caught with it being seen as a business and paying CGT you're getting the benefit at the moment of PPR relief.

To expect a 'frequent movers' stamp duty discount is, shall we say, wildly optimistic.

I need to move now and dont want to rent, but my circumstances may change within a few years which would require moving again. 

MarkymarkUK

Thanks to those who have answered, I didn’t expect a positive outcome! Given that higher level of stamp can be recovered I thought worth a chance. 

jonnydeppiwish!

If you’re selling your main residence each time, then buying a new main residence (ie not increasing your rental properties), surely you’d only pay normal stamp duty? @SDLT_Geek would be able to help if you clarify the situation.

Or am I reading the Op’s post wrong?

user1977

jonnydeppiwish! said:

Or am I reading the Op’s post wrong?

Yes, you are (though it wasn't particularly clear). They're asking whether there's any concession on normal stamp duty if you don't own a property for very long.

jonnydeppiwish!

user1977 said:

jonnydeppiwish! said:

Or am I reading the Op’s post wrong?

Yes, you are (though it wasn't particularly clear). They're asking whether there's any concession on normal stamp duty if you don't own a property for very long.

Apologies and thanks for pointing that out - have reread it for the 5th time and see where they’re coming from - I saw the 3x stamp duty!