Stamp duty when moving home while owning a BTL property

jagathab4444

Dear all, 

Apologies for starting new thread. I don't know whether this has been discussed before. Admin please delete this if not allowed. 

I am selling  my home  and am looking for a new home  to move in. I have found a house with an asking  price of £575,000. I have to sell my house first before buying the new house. My current house is mortgage free and am not looking for a mortgage to buy the new house. 

The problem is I also own a small buy to let  property. I bought the house in 2021 for £135000. I have an existing mortgage of £99500. 


Since I don't know how my BTL property is affecting the stamp duty for the new purchase  I checked with various stamp  duty calculator websites which gave me different figures. One website indicated that I only have to pay £18750 . Gov.UK calculated it as as £30,250 while another site gave me a figure of £43,000 which obviously I cannot afford to.

Can any of you help me to calculate how much time duty I will be paying when I buy my new house? 

Tanking in anticipation. 

JA

anselld

Assuming you are in England...

You are replacing your main residence so the higher rates do not apply.  £18,750 is correct.

jagathab4444

anselld said:

Assuming you are in England...

You are replacing your main residence so the higher rates do not apply.  £18,750 is correct.

Thank you for immensely reassuring reply. Much appreciated. 

 Yes I live in England. Does this mean that my BTL property does not affect the SDLT rate for the purchase?  Sorry for pestering! It's because someone told me that although I am replacing my main residence, such might be considered as the second home because I am already having the BTL!

anselld

That is correct.  If you are replacing main residence any other BTL(s) do not affect the basic SDLT rate.  That is the whole point of the exception for replacement residence.

SDLT_Geek

jagathab4444 said:

Dear all, 

Apologies for starting new thread. I don't know whether this has been discussed before. Admin please delete this if not allowed. 

I am selling  my home  and am looking for a new home  to move in. I have found a house with an asking  price of £575,000. I have to sell my house first before buying the new house. My current house is mortgage free and am not looking for a mortgage to buy the new house. 

The problem is I also own a small buy to let  property. I bought the house in 2021 for £135000. I have an existing mortgage of £99500. 


Since I don't know how my BTL property is affecting the stamp duty for the new purchase  I checked with various stamp  duty calculator websites which gave me different figures. One website indicated that I only have to pay £18750 . Gov.UK calculated it as as £30,250 while another site gave me a figure of £43,000 which obviously I cannot afford to.

Can any of you help me to calculate how much time duty I will be paying when I buy my new house? 

Tanking in anticipation. 

JA

I agree with @anselld.

You can find the guidance confirming the point here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09800

jagathab4444

SDLT_Geek said:

jagathab4444 said:

Dear all, 

Apologies for starting new thread. I don't know whether this has been discussed before. Admin please delete this if not allowed. 

I am selling  my home  and am looking for a new home  to move in. I have found a house with an asking  price of £575,000. I have to sell my house first before buying the new house. My current house is mortgage free and am not looking for a mortgage to buy the new house. 

The problem is I also own a small buy to let  property. I bought the house in 2021 for £135000. I have an existing mortgage of £99500. 


Since I don't know how my BTL property is affecting the stamp duty for the new purchase  I checked with various stamp  duty calculator websites which gave me different figures. One website indicated that I only have to pay £18750 . Gov.UK calculated it as as £30,250 while another site gave me a figure of £43,000 which obviously I cannot afford to.

Can any of you help me to calculate how much time duty I will be paying when I buy my new house? 

Tanking in anticipation. 

JA

I agree with @anselld.

You can find the guidance confirming the point here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09800

Thank you.anselld said:

That is correct.  If you are replacing main residence any other BTL(s) do not affect the basic SDLT rate.  That is the whole point of the exception for replacement residence.

Thanks a lot.

RAS

Replacement of your primary residence is exempt from the higher rate SDLT.

Sell and replace the BTL and you will have to pay the enhanced SDLT as well as CGT.

jagathab4444

RAS said:

Replacement of your primary residence is exempt from the higher rate SDLT.

Sell and replace the BTL and you will have to pay the enhanced SDLT as well as CGT.

Thank you very much 🙏 

jagathab4444

anselld said:

That is correct.  If you are replacing main residence any other BTL(s) do not affect the basic SDLT rate.  That is the whole point of the exception for replacement residence.

Thank you.

saajan_12

jagathab4444 said:

I am selling  my home  and am looking for a new home  to move in. I have found a house with an asking  price of £575,000. I have to sell my house first before buying the new house. My current house is mortgage free and am not looking for a mortgage to buy the new house. 

The problem is I also own a small buy to let  property. I bought the house in 2021 for £135000. I have an existing mortgage of £99500. 

To clarify how much before the purchase do you intend to sell?