Stamp duty question

JohnnyFlame

Hi,

probably a simple question for someone here.

If I own a property and want to purchase a second property to live in, (i.e. a main residence) while renting out the first property, would the new property classify as a 'main residence' or a 'second property'?

I'm asking as there is a big difference in £££ between the two,

thanks…

kingstreet

Second property.

You would have a refund of the surcharge if you sell the first property within three years of purchasing the second.

saajan_12

https://forums.moneysavingexpert.com/discussion/6657658/stamp-duty-question

You have to pay the higher rate.

Note there's no difference whether its a main residence or not if its an additional property. The difference is only if you were ALSO selling your prior home.

SDLT_Geek

https://forums.moneysavingexpert.com/discussion/6657658/stamp-duty-question

Is the property you are buying in England, so the relevant stamp duty is stamp duty land tax?

It sounds as if they property you are buying will become your "main residence" because you are planning to live there long term. That does not answer the SDLT question though, because on completion of the purchase you will own two properties. I would expect the extra 5% for additional properties to apply to the purchase. The rules about "replacing your main residence" will not help you if you are keeping, not selling / disposing of your other property.

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