Higher rate SDLT on main residence

Frenchinjection

I have been a tenant for 31 years and have now been given the opportunity to purchase the property from the landlords.  It is my main residence.  I own 1 buy-to-let property which provides income but I have never lived there.  The question is regarding higher rate SDLT.  The HMRC SDLT calculator asks if I am replacing my main residence.  My main residence is the place I am buying so I will end up owning 2 properties, however I am not replacing it as I already live in it. So am I liable for the higher rate SDLT.  If so, when I then sell the buy to let, and then only own one property, will I be able to get a refund of the higher rate SDLT?

p00hsticks

I don't believe you will - you don't currently own your main residence so for SDLT purposes you're not replacing it, and your BTL isn't your main residence either. 

theartfullodger

Presumably you are using a solicitor for the purchase (please not the one recommended by landlord??).  Or are you legally training in property purchase?? I'd get solicitor to check (think you won't also).

And keep copies of all evidence (tenancy agreement, rent payments - statements -  etc etc etc..) in case someone in government doesn't believe you (I of course do)

Good luck and congrats!

Keep_pedalling

p00hsticks said:

I don't believe you will - you don't currently own your main residence so for SDLT purposes you're not replacing it, and your BTL isn't your main residence either. 

Sadly incorrect, the higher rate is applicable.

https://uklandlordtax.co.uk/tax-guide/stamp-duty-faqs/

user1977

Keep_pedalling said:

p00hsticks said:

I don't believe you will - you don't currently own your main residence so for SDLT purposes you're not replacing it, and your BTL isn't your main residence either. 

Sadly incorrect, the higher rate is applicable.

https://uklandlordtax.co.uk/tax-guide/stamp-duty-faqs/

Or "correct" rather i.e. the OP will not be able to get a refund.

Only way to avoid it is to sell the BTL first (or simultaneously with the purchase).

sheramber

As you are not disposing of your main residence and replacing it with another one you are due to pay the higher rate.

selling the buy to let will not  produce a refund as it is not your main residence. 

You will be due to pay  CGT when you sell the buy to let. 

The only way to avoid paying the higher rate  on the purchase of your main residence is to sell the buy to let before you buy the main residence. 

SDLT_Geek

Frenchinjection said:

I have been a tenant for 31 years and have now been given the opportunity to purchase the property from the landlords.  It is my main residence.  I own 1 buy-to-let property which provides income but I have never lived there.  The question is regarding higher rate SDLT.  The HMRC SDLT calculator asks if I am replacing my main residence.  My main residence is the place I am buying so I will end up owning 2 properties, however I am not replacing it as I already live in it. So am I liable for the higher rate SDLT.  If so, when I then sell the buy to let, and then only own one property, will I be able to get a refund of the higher rate SDLT?

I agree with what others have said: higher rates of SDLT if the BTL is still owned at the date of the purchase and no right to a refund if the BTL is later sold.

There is a rule about properties occupied under a lease / tenancy which is unlikely to help you, but for completeness it might be worth addressing.  Has your 31 years as a tenant always been on short tenancies, as would usually be the case?  You were not granted a lease for a term of over 7 years in the property you are living in now?