Stamp Duty - avoiding 3% levy?

oatkinso

Hi there,

I currently own 2 houses, one is my main residence in Sheffield and the other is in Stockport. In order to fund a new house in Sheffield , I decided to sell my rented house in Stockport, which I agreed an offer on about 3 weeks ago. My main residence in Sheffield went on the market last week, so hopefully i'll have an agreed offer in the next week or two. 

This weekend I had an offer accepted on a house in Sheffield. My question is, does my current main residence have to complete before the completion of my new main residence (the house we've just had an offer accepted on) in order to avoid paying the extra 3% levy for non main residence purchases, or is there some kind of timeframe leeway between both?

I would assume not, seeing as everyone used to find a house first before selling theirs, but I just thought I'd check as the vendors estate agents raised the question.

Thanks, Owen

welly_59

You will have to pay the stamp duty, but you can get a refund if you sell the original property within 12 months

https://www.gov.uk/government/publications/stamp-duty-land-tax-apply-for-a-repayment-of-the-higher-rates-for-additional-properties

Snookie12cat

You can only get the refund if you replace your main residence. 
It doesn't matter which order you do it. If you sell the main residence at the same time as buying the new one you don't have to pay the 3% even if it have the rental. 
If you sell the rental but don't sell the main residence before you buy the new one you will have to pay the 3% but can claim it back as long as you sell the old main residence within 36 months. 

oatkinso

Hi both,

Thanks for the messages, much appreciated!