CLARIFICATION ON SECOND STAMP DUTY PLEASE

Salsa2006

Hello, I would be really grateful if anyone has any advice on the following situation for me please.
I have owned my residential home since 1994 and bought a buy to let in 2014. I am now thinking of selling my residential home and buying another residential home to live in, ie a normal house sale. Will the rental property be classed as a second home although it was purchased prior to 2016. I've tried to look on the internet but can't see any helpful information.  Thank you for any advice you could offer. Best wishes.

user1977

If you're replacing your main residence (i.e. selling and buying simultaneously) then normal rates apply to your purchase, doesn't matter what else you own.

SDLT_Geek

Salsa2006 said:

Hello, I would be really grateful if anyone has any advice on the following situation for me please.
I have owned my residential home since 1994 and bought a buy to let in 2014. I am now thinking of selling my residential home and buying another residential home to live in, ie a normal house sale. Will the rental property be classed as a second home although it was purchased prior to 2016. I've tried to look on the internet but can't see any helpful information.  Thank you for any advice you could offer. Best wishes.

@user1977 is right.

There is some helpful guidance here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09800

paulintheprocess

Yes, you’d still be hit with the higher-rate SDLT on the new place because you’ll own the BTL at the point you buy your next home. It doesn’t matter that the rental was bought before 2016, the rules look at what you own on the day you complete, not when you bought it.

The good news is you can claim the extra SDLT back if you sell your old home within 3 years of buying the new one. So you’ll pay it upfront, but it isn’t lost as long as that sale goes through in time.

sheramber

paulintheprocess said:

Yes, you’d still be hit with the higher-rate SDLT on the new place because you’ll own the BTL at the point you buy your next home. It doesn’t matter that the rental was bought before 2016, the rules look at what you own on the day you complete, not when you bought it.

The good news is you can claim the extra SDLT back if you sell your old home within 3 years of buying the new one. So you’ll pay it upfront, but it isn’t lost as long as that sale goes through in time.

When replacing a main residence the btl is irrelevant.

If you sell your main residence and simultaneously buy a new main residence there is no second stamp duty. ( you complete on the sale and purchase on the same day) 

If you buy a new main residence before selling your current main residence you will pay the additional charge but can claim it back if you sell your current main residence within 3 years.