Stamp Duty Question

andy888812

Hi,

I have a question regarding stamp Duty.

I currently have a buy to let on personal names (myself and wife)

We currently live with parents

We are purchasing a new property for £450,000

The plan is to sell the buy to let and only own the new property.

In the current situation Do i need to pay the additional stamp duty or do I not. (My Main residence is currently with my parents)

If i need to pay the additional stamp duty am i able to claim the extra back once the buy to let is sold ?

Thank you

MyRealNameToo

So is the new property another buy to let or is it going to be your home?

andy888812

the new property will be our new home, it will not be a buy to let

Woodstok2000

You may need some professional advice here. Not an expert but my understanding is:

You pay additional rate stamp duty if, when you buy a property, you then own more than 1 property. So in this case yes, you would pay the additional rate.

You can claim back the additional rate if the property you are buying replaces your main residence and you then, within 36 months, sell your main residence.

As youre not replacing or selling your main residence, this doesn't seem to apply. You may be better selling the buy to let first, which would avoid the additional sdlt charge.

JadEle

I had a similar situation, I had a buy to let but myself was renting a flat, when it came time to buy my first residential property I paid the additional rate stamp duty. As it happens I did sell my buy to let within three years of purchase but it was irrelevant as it only counts if you sell your previous main residence, which it was not, it was a buy to let and previously I was living in a different flat.

You need to pay the additional stamp duty , you are not able to claim the extra back once the buy to let is sold, sorry.

SDLT_Geek

https://forums.moneysavingexpert.com/discussion/6661424/stamp-duty-question

I agree with @JadEle. Unless you have lived in the let property within the last three years as your only or main residence, then selling it after your purchase of a new home, will not entitle you to recover the extra 5% stamp duty land tax due on your new home.

(I am assuming you are buying in England so that the relevant stamp duty is stamp duty land tax.)