Stamp duty land tax supplement

eden13M22

I had a 4 bedroomed house (my main residence) and a one bedroomed flat (a second home). I sold the house a couple of months ago and moved into my flat, which I also plan to sell in order to buy a new house. However, I am having difficulties selling the flat and am therefore looking at buying a house before I sell the flat. I have never regarded the flat as my main residence, even though I am now living in it. I have not declared it as my main residence to HMRC. Will I be liable for the extra 5% stamp duty if I buy a new house before selling the flat?

mlz1413

I did this in 2024 and didn't pay extra stamp duty.

I had 2 months between selling main residence and buying new main residence.

When I moved I had never planned to sell the flat, it just happened the tenant gave noice as I was selling so I left it empty. So my solicitors always knew my chain was meant to be seamless. But due to incompetence by one particular solicitor the chain nearly collapsed so I was grateful to have somewhere to move myself and all my boxes to without huge expense.

I'm not sure if there are time limits, but hopefully someone else will give better info from a legal point of view.

sherlock228

https://forums.moneysavingexpert.com/discussion/6674388/stamp-duty-land-tax-supplement

no you won't be liable for higher rate SDLT

Condition D allows a 3 year time period between sale of old main home and purchase of new main home (points 1 - 4) .
In that intervening period you have not purchased an extra property (point 5) , you merely occupy one you already own on, as you say, a temporary basis pending the purchase of the new home.

SDLTM09800 - SDLT - higher rates for additional dwellings: Condition D - general - Para 3(6) Sch 4ZA FA2003 - HMRC internal manual - GOV.UK

example 4 illustrates the principle of moving into an already owned property between selling and buying.

SDLTM09810 - SDLT - higher rates for additional dwellings: Condition D - further examples - HMRC internal manual - GOV.UK

bobster2

But of course you will have Capital Gains Tax to pay on the sale of the flat.

eden13M22

Thank you all for your helpful information

SDLT_Geek

https://forums.moneysavingexpert.com/discussion/comment/82052628#Comment_82052628

Very well explained @sherlock228. I agree.