Main residence relief

errumm

I am currently living in my second home (inherited half share of parents house), having sold my main residence 2 years ago. I intend to jointly buy another main residence soon (before the 3 year cutoff), but continue to live in the second home for the next 3 years. Is this within the rules? I will be moving back into the main residence after 3 years.

p00hsticks

I'm not an expert but as I understand it 'main residence' is a matter of fact. If you are not actually going to be living in the new property it's not your main residence.  

And if you now only own one property that you are living in, then surely that is now your main residence, not your 'second home'.. 

Flugelhorn

This reads like you can live elsewhere and have a delay in purchasing the new main residence property and  don't have to pay the higher rate 

"

Old main residence sold before or on the same day as the new main residence is purchased  

In this first situation Condition D will be met unless all of the following 5 conditions are met: - 

1. At the time of purchase of the new property, the purchaser intends to live in the new property as the purchaser's only or main residence [Para 3(6) (a)].
2. In the three-year period preceding the purchase of the new property, the purchaser (or the purchaser's spouse or civil partner at the time) must have disposed of a major interest in another dwelling (the "old property") [Para 3(6) (b)]. Leaving employer provided accommodation or a parental home does not count as a disposal of a major interest in a previous main residence for the purposes of Condition D. This is the three-year disposal rule.
3. Immediately after the disposal of the old property, neither the purchaser nor the purchaser's spouse or civil partner had a major interest in the old property.
4. The purchaser must have lived in the old property as the purchaser's only or main residence at some point in the three-year period preceding the date of the purchase of the new property  [Para 3(6) (c)]. This is the three-year occupation rule.
5. At no point between selling the old property and buying the new property had the purchaser (or the purchaser's spouse or civil partner) acquired a major interest in another dwelling with the intention of the purchaser living in it as the purchaser's main or only residence [Para 3(6) (d)].

SDLT_Geek

errumm said:

I am currently living in my second home (inherited half share of parents house), having sold my main residence 2 years ago. I intend to jointly buy another main residence soon (before the 3 year cutoff), but continue to live in the second home for the next 3 years. Is this within the rules? I will be moving back into the main residence after 3 years.

You do not say whether your concern is as to stamp duty land tax, but that might well be the case, as @Flugelhorn assumes.  You are buying a property in England?

You appear to be using the term "main residence" in a different way from the SDLT legislation.  It would be difficult to rely on the rules about "replacing main residence" when you are not planning to live in the property you are buying for at least three years.

Perhaps though you are saved from the extra 5%, if you inherited the half share within the last three years.  There is a special rule about that, explained here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09795

errumm

Thanks for the replies. In answer to the questions....

Yes, all property is in England.
My concern is SDLT, as per @Flugelhorn (2), I was hoping to buy with in 3 years to avoid 5% extra.
I inherited more than 3 years ago, so the special rule doesn't apply.

From the replies. It looks like I'll have to wait and buy when I'm able to move and pay the extra 5%.