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Stamp Duty Question - Main Residence



  • user1977
    user1977 Posts: 13,930 Forumite
    First Anniversary First Post Name Dropper Combo Breaker
    user1977 said:
    silvercar said:
    silvercar said:
    I thought the requirement is to be buying your main residence and not increasing the number of properties owned. If I'm right, then you could sell one of the BTLs and buy your new main residence. There isn't a requirement to actually live in the property you are selling. 

    I'm sure someone will correct me if I'm wrong.
    That’s not correct. It’s not as simple as at the start of the transaction the OP owns 3 properties and by selling a BTL and a new main residence will still only have 3 properties at the end of the transaction.  That only works when the owner of multiple properties sells their main residence to buy a new main residence to satisfy condition D -general- of paragraph 3(6) schedule 4ZA FA2003. 

    To avoid the higher rate of SDLT the OP would have to first sell all 3 BTL and then purchase a new main residence. 

    There is condition D -exceptional circumstances - of paragraph 3(7)(b) schedule 4ZA FA2003. I’m not sure if the ‘rona counts as an exceptional enough circumstance though since people were still buying and selling property the whole way through the pandemic. 
    So could OP buy a cheap property, live in it as main residence and then decide to sell it and buy a more expensive main residence?
    Yes, again assuming that they genuinely are intending it to be their main residence and not just a temporary tax-saving stepping-stone.
    Who would know?
    "How do I get away with this method of tax evasion" isn't generally considered to be acceptable money-saving advice around here...
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