Stamp Duty on replacing main home when you own buy-to-lets

RainbowsInTheSpray
Forumite Posts: 1,334
Forumite


in Cutting tax
I'm not sure but I believe my solicitor may be telling me a load of nonsense.
Can anyone here confirm for certain what google searches seem to show, namely that an owner of buy-to-lets only pays the standard rate of Stamp Duty if simply selling one 'principal private residence' and replacing it with another... i.e. moving home!? This will be a standard house move, completions happening at the same time.
He's telling me that ownership of buy-to-lets will probably affect my move and that I'll have to pay a 3% surcharge, if you please. My investigations seem to indicate otherwise.
Can anyone here confirm for certain what google searches seem to show, namely that an owner of buy-to-lets only pays the standard rate of Stamp Duty if simply selling one 'principal private residence' and replacing it with another... i.e. moving home!? This will be a standard house move, completions happening at the same time.
He's telling me that ownership of buy-to-lets will probably affect my move and that I'll have to pay a 3% surcharge, if you please. My investigations seem to indicate otherwise.
0
Comments
-
Assuming we're talking England here then I believe you are right and your solicitor is wrong.
From:
Higher rates of Stamp Duty Land Tax - GOV.UK (www.gov.uk)You must pay the higher Stamp Duty Land Tax (SDLT) rates when you buy a residential property (or a part of one) for £40,000 or more, if all the following apply:
- it will not be the only residential property worth £40,000 or more that you own (or part own) anywhere in the world
- you have not sold or given away your previous main home
- no one else has a lease on it which has more than 21 years left to run
2 -
If you buy before you sell you will pay the additional stamp duty but can reclaim it if you sell your original main residence within 3 years1
-
Get your solicitor to read HMRC’s guidance in the Stamp Duty Land Tax manual at
SDLTM09800
Which makes it very clear.
Allconnected.1
Categories
- All Categories
- 338.9K Banking & Borrowing
- 248.7K Reduce Debt & Boost Income
- 447.6K Spending & Discounts
- 230.8K Work, Benefits & Business
- 600.9K Mortgages, Homes & Bills
- 171.1K Life & Family
- 244K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards