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Stamp duty when moving home while owning a BTL property

jagathab4444
jagathab4444 Posts: 8 Forumite
Part of the Furniture Name Dropper First Post Combo Breaker
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




Comments

  • anselld
    anselld Posts: 8,564 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Assuming you are in England...
    You are replacing your main residence so the higher rates do not apply.  £18,750 is correct.

  • jagathab4444
    jagathab4444 Posts: 8 Forumite
    Part of the Furniture Name Dropper First Post Combo Breaker
    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
    anselld Posts: 8,564 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    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
    SDLT_Geek Posts: 2,841 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    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
    jagathab4444 Posts: 8 Forumite
    Part of the Furniture Name Dropper First Post Combo Breaker
    SDLT_Geek 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
    RAS Posts: 34,931 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    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.
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