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SDLT 2nd home
sharrison01
Posts: 47 Forumite
Hi all and thank you in advance for any help!
I've been renting with my family for the past year due to work and am looking to buy a family house in the area. However I still own a batchelor flat that I lived in before here and intend to keep this to rent out. Since moving out of the flat it has been used by me when I've gone back to visit my parents and I've let friends stay there on the odd occasion but when we buy it will be rented out more formally with an agent.
So with regards to SDLT do I have to pay the higher rate due to the 2nd property or would this fall under the category of replacing my main residence as that is currently the rental property that we are living in?
I've been renting with my family for the past year due to work and am looking to buy a family house in the area. However I still own a batchelor flat that I lived in before here and intend to keep this to rent out. Since moving out of the flat it has been used by me when I've gone back to visit my parents and I've let friends stay there on the odd occasion but when we buy it will be rented out more formally with an agent.
So with regards to SDLT do I have to pay the higher rate due to the 2nd property or would this fall under the category of replacing my main residence as that is currently the rental property that we are living in?
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Comments
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You intend to keep the other property so second property SDLT will be payable.I am a mortgage broker. 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.1
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Yes, the extra 3% SDLT would be due. To count as "replacing your main residence" requires you to sell or otherwise completely dispose of your other property.sharrison01 said:Hi all and thank you in advance for any help!
I've been renting with my family for the past year due to work and am looking to buy a family house in the area. However I still own a batchelor flat that I lived in before here and intend to keep this to rent out. Since moving out of the flat it has been used by me when I've gone back to visit my parents and I've let friends stay there on the odd occasion but when we buy it will be rented out more formally with an agent.
So with regards to SDLT do I have to pay the higher rate due to the 2nd property or would this fall under the category of replacing my main residence as that is currently the rental property that we are living in?
Perhaps you would be entitled to a refund of the 3% extra if the flat is sold in the next three years. There is guidance here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm098002 -
Thank you for your reply, I was hoping the "replace main residence" had some wiggle room but sadly not on thsi occasion!0
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