SDLT replacing main residence 3 years rule

Winging_it82

Hello. Wondering if anyone can lend any advice. Years ago I bought my grandmother’s property off her, as she got herself into debt. Later, my mum moved in and cared for her u til she passed. My mum now lives in the property and pays the mortgage so it’s on a buy to let.

Me and my partner bought our own home in 2018, because I had this second property we paid the higher rate of stamp duty and declared it my main residence. 

Unfortunately, we separated in 2023 and we sold our joint home. I got a job in London and wasn’t sure about life. I bought a boat which I’ve renovated and I live on it part time whilst I’m in London and rent a property in Manchester for the rest of the time. 

My current circumstances suit me and I can’t afford to buy in London, but I’m aware that my 3 years is coming quickly. 

My question is, do I have to buy to keep that main residence status? Will renting suffice. Or even if I was to live on the boat full time (which in essence is a property I’ve bought) would that do instead? I don’t want to be forced to buy somewhere right now. I also don’t want to be forced to pay the higher rate of stamp duty again when the time is right for me to buy. 

My second property where my mums lives isn’t really fully mine. Any capital is mostly for my mum if she needs it for care etc when she get’s older. 

Any help would be appreciated. 

Bookworm225

sorry but the rental is disregarded as it is not a main home in which you have a financial interest. So the interest that is "replaced" remains that of the old home. 

Manchester is your de facto current main home, but is disregarded due to being a rental. So, as you sold old home in 2023, you have 3 years from that date to buy a replacement new (owned) main home or you will face higher rate SDLT (NOTE *)

see final para:
SDLTM09800 - SDLT - higher rates for additional dwellings: Condition D - general - Para 3(6) Sch 4ZA FA2003 - HMRC internal manual - GOV.UK

Renting while replacing a purchaser’s only or main residence   

An assured shorthold tenancy taken between the sale of the old property and purchase of the new property will be ignored so long as the tenancy is not granted for a term of more than 7 years.   

NOTE
Your final comment regarding "capital is for mum" provides a twist that could get technical because you could argue mother is in fact the beneficial owner of that property
In that case it cannot be counted as your property.

However, as you say it is BTL that does, at face value, argue that the benefit remains yours. For example, have you been declaring mother's "rent" payment for your own income tax position? If you have then that weakens your prospect of saying mother actually is the beneficial owner and would get the money from it.