Buy to let stamp duty

CECILY65

Does any know what percentage of stamp duty I would have to pay if I sell a buy to let and buy another one using the capital.
I am basically exchanging one buy to let for another.  The property I would like to buy would cost me £17500 in stamp duty if it counts as an additional instead of £3500. I would be grateful if someone knows the correct percentage I would have to pay 

RipleyG

For a new b2l you'll pay the full amount of stamp duty at second property rates - there's no discount because you're selling another property. 

Don't forget to account for capital gains tax on the one you're selling too (if relevant). 

user1977

That's assuming you also own other property/ies. If you are selling the only property you own and buying another one then standard rates apply, even if a BTL.

grumpy_codger

user1977 said:

That's assuming you also own other property/ies. If you are selling the only property you own and buying another one then standard rates apply, even if a BTL.

Are you sure? I'm no expert, but what I see is:

You’ll usually have to pay 5% on top of SDLT rates if buying a new residential property means you’ll own more than one.
....

You will not pay the extra 5% SDLT if both of the following apply:

• the property you’re buying is replacing your main residence

• ...

MWT

grumpy_codger said:

user1977 said:

That's assuming you also own other property/ies. If you are selling the only property you own and buying another one then standard rates apply, even if a BTL.

Are you sure? I'm no expert, but what I see is:

You’ll usually have to pay 5% on top of SDLT rates if buying a new residential property means you’ll own more than one.
....

You will not pay the extra 5% SDLT if both of the following apply:

• the property you’re buying is replacing your main residence

• ...

What you see is still the description for someone who owns more than one, the extra 5% does not apply if you only own one property....

saajan_12

How many properties do you own? If more than one, then replacing a BTL is still charged at the higher rates. The % is banded so depends on the purchase price of the new property. 

fireballpaul

Capital gain tax applies to a 2nd home only is that right?     

Do you get Capital Gain tax simply by buying another property, is it only when you go to sell it?

silvercar

fireballpaul said:

Capital gain tax applies to a 2nd home only is that right?     

Do you get Capital Gain tax simply by buying another property, is it only when you go to sell it?

CGT applies to any property that isn’t your main residence, or hasn’t been for the whole time of ownership.

fireballpaul

silvercar said:

fireballpaul said:

Capital gain tax applies to a 2nd home only is that right?     

Do you get Capital Gain tax simply by buying another property, is it only when you go to sell it?

CGT applies to any property that isn’t your main residence, or hasn’t been for the whole time of ownership.

Yes but does that count when you are buying it?  So you have to pay a tax on the purchase price of the 2nd house you are buying?  
Technically that isn't a capital gain - i'm just exchanging the cash for a house

silvercar

You pay CGT on the sale of a property, if it has increased sufficiently in value. You pay SDLT on the purchase of a property. They aren’t interchangeable.

fireballpaul

silvercar said:

You pay CGT on the sale of a property, if it has increased sufficiently in value. You pay SDLT on the purchase of a property. They aren’t interchangeable.

Thank you.  So simply buying a new house is zero capital gain but instead there is stamp duty as it's a 2nd house.  Got ya. 

Then tomorrow I sell that new  house and get hit with capital gain