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Stamp duty and second home council tax options
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halwyn
Posts: 6 Forumite

We bought a second home in Nov 23 and paid a 3% SDLT premium. Since April we have also paid double council tax. We are now retiring and have sold our main house and should complete next week. Longer term we will probably buy again and then rent out the current second home. But we will be living in that house for maybe a year as our sole property. Can we tell the council that is our only property and revert to normal council tax, not reclaim the 3% SDLT, and then swap our primary residence to the future property that we buy so we do not have to pay a premium SDLT for that larger transaction. We would then inform the council that we are liable for double council tax again on the original second home but hopefully would find a tenant quickly to make that a short period. Does that make sense?
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I had a look at this as considered doing similar - Am sure I found somewhere that the replacement of the main home could be delayed for a period of time
Just found the relevant link https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09805
"ExampleAn individual buys a dwelling and intends to live in it as her main residence. The effective date of the transaction is 31 May 2019. If she had previously sold a dwelling at any time on or since 1 June 2016, then the purchase may be a replacement of a main residence. The dwelling she disposed of would have to have been her only or main residence at some time during the period 1 June 2016 to 31 May 2019. She must not have acquired another new main residence after the disposal and before the purchase. "
not sure about the council tax but they don't ask about about the status of the home (unless it is a second home)
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