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Stamp Duty Additional 3% Surcharge Applicable?
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Thanks everyone. The term ‘disposing’, by doing this we will still only have one main residence. In theory this would be no different to having pre existing BTL’s right? Is there nothing in SDLT laws/guidance around this scenario?
Alternatively if we rent our current place now or temporarily lodge with family/friends for a short period, and then purchase a new property then technically it would mean our current main residence would class as an existing buy to let and at the time of purchase we would have no official main residence. Unless I am getting really confused would this not meet the golden rule of ‘changing main residence’ and hence negate the need for the additional stamp duty when we do purchase?
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Disposing means selling. The rules are clear. You’re increasing the number of houses you own, so the surcharge applies. It doesn’t matter what you use them for.1
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Charlie1985 said:Thanks everyone. The term ‘disposing’, by doing this we will still only have one main residence. In theory this would be no different to having pre existing BTL’s right? Is there nothing in SDLT laws/guidance around this scenario?
Alternatively if we rent our current place now or temporarily lodge with family/friends for a short period, and then purchase a new property then technically it would mean our current main residence would class as an existing buy to let and at the time of purchase we would have no official main residence. Unless I am getting really confused would this not meet the golden rule of ‘changing main residence’ and hence negate the need for the additional stamp duty when we do purchase?
"Converting" a property into BTL and ending up owing 3 instead of 2 properties is not disposing of your old main home, it is buying an additional property - it is therefore irrelevant that the new one is your new home. It has been explained to you several times already that in order to "change" (replace) your main home you must have disposed of (ie no longer OWN) your previous main home.
You have been given the relevant link to condition D under which you are deemed to have validly replaced the main home. If you read that then you will understand why your latest clutch at straw scenario also fails.
If you prefer, you could always educate yourself from the beginning by starting here: SDLTM09730 - SDLT - higher rates for additional dwellings: Contents - HMRC internal manual - GOV.UK1 -
Charlie1985 said:Thanks everyone. The term ‘disposing’, by doing this we will still only have one main residence. In theory this would be no different to having pre existing BTL’s right? Is there nothing in SDLT laws/guidance around this scenario?
Alternatively if we rent our current place now or temporarily lodge with family/friends for a short period, and then purchase a new property then technically it would mean our current main residence would class as an existing buy to let and at the time of purchase we would have no official main residence. Unless I am getting really confused would this not meet the golden rule of ‘changing main residence’ and hence negate the need for the additional stamp duty when we do purchase?I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.1 -
Disposing means you no longer own it, in any capacity.1
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OP, why not just decide what you want to do and pay the appropriate taxes? Trying to organise your housing options around the taxes you may or may not pay seems a bit backwards.
If you want to rent out your existing main residence property and subsequently buy a new property as a main residence, you can do so but you would have to pay the additional 5% SDLT - however, you can then claim back if you sell that former main residence within 3 years of buying your new main residence.0 -
I'd also suggest that if you want the advantages of being landlords and owning multiple properties, then you need to accept that also comes with a cost. Presumably if the boiler broke on the rental property you would not be scraping around trying to work out how you could save the cost of repair or replacement, you would get it fixed in a timely manner and accept that it is a "running cost" of your property business. That same thing also applies to taxes that become due as a result of operating that sort of business.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0
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