Second home stamp duty question

doz85

Hello everyone, advice much appreciated. My partner and I will be converting the flat we currently live in to a buy to let end of December, and then we will go travelling for 6 weeks. During this time, when our current residence is already a buy-to-let, we will exchange and complete on a new home we want to live in. 
My question is, will we have to pay the higher stamp duty on the new home if the exchange date is after our current residence is a buy-to-let? So it won't be replacing our existing home because at that point we won't be living in it? 
Many thanks, any insight appreciated.  

user1977

The exchange date and the use of the existing property aren't relevant here - you are increasing the number of properties you own from 1 to 2, so the higher rate will apply to your purchase.

The relief for "replacing your main residence" is only relevant if you were selling your existing residence and buying a new main residence (i.e. you could then ignore any additional properties you already owned). Otherwise it would be a fairly wide open loophole!

Bookworm105

you misunderstand the "replacement" issue
It is not about changing where you live, it is more about how many properties do you own at the end of the day

you will be retaining the (now) BTL
You be buying an additional property 
in that context the fact the new one will be your new main home is irrelevant
You will pay the additional rate SDLT

Only if you sell the (now) BTL within 3 years of buying the new home would you be eligible to reclaim the additional rate SDLT as at that point, with the old one sold off, you then meet the criteria for having "replaced" a previous main home.

saajan_12

doz85 said:

Hello everyone, advice much appreciated. My partner and I will be converting the flat we currently live in to a buy to let end of December, and then we will go travelling for 6 weeks. During this time, when our current residence is already a buy-to-let, we will exchange and complete on a new home we want to live in. 
My question is, will we have to pay the higher stamp duty on the new home if the exchange date is after our current residence is a buy-to-let? So it won't be replacing our existing home because at that point we won't be living in it? 
Many thanks, any insight appreciated.  

Beyond of the dates of when its your main home, you have to also be SELLING that main home for it to count as a replacement. Here you're just increasing the number of properties owned, so the higher SDLT (now 5% extra) is owed.