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Help please: Stamp Duty on 3rd House

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terryjameswalker
terryjameswalker Posts: 2 Newbie
in House buying, renting & selling
Hi All,

Situation is looking like this:
Sell 1st house
Keep 2nd house (rental)
Buy 3rd house (new place of residence)

Would stamp duty include extra 3% as I would already own one house.
Or; would stamp duty be 2% because of moving home and place of residence to that property.

Hope that's clear. And if anybody has a link to where this is actually written/prooven, that would be great.
Thank you

Comments

  • marliepanda
    marliepanda Posts: 7,186 Forumite
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    Where do you live now. House 1 or 2?

    If you live in House 1, sell house 1 and move into House 3, there is no 'extra' Stamp Duty, just standard.

    As long as you dont own 'more' houses at the end, theres no extra.
  • noddynoo
    noddynoo Posts: 346 Forumite
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    This isn;t correct If you own a house already and buy another you now pay the extra.
  • saajan_12
    saajan_12 Posts: 3,621 Forumite
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    marliepanda wrote: »
    Where do you live now. House 1 or 2?

    If you live in House 1, sell house 1 and move into House 3, there is no 'extra' Stamp Duty, just standard.- agree

    As long as you dont own 'more' houses at the end, theres no extra. - not the case in general.. you have to be disposing of your main residence and not end up with more houses
    noddynoo wrote: »
    This isn;t correct If you own a house already and buy another you now pay the extra.-
    Not if you're selling your main residence.

    OP, it depends on whether house 1 is your main residence.

    If you are selling your main residence at the same time as purchasing a new property to be your new main residence, you only pay standard rate SDLT. If you purchase a new main residence, you pay the higher rate (extra 3%) but this is refunded if you sell your old main residence within 18 months, subject to timing requirements around when it was your main residence.
  • kingstreet
    kingstreet Posts: 38,764 Forumite
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    noddynoo wrote: »
    This isn;t correct If you own a house already and buy another you now pay the extra.
    If he sells main residence and goes from owning two now to owning two after completion, the SDLT surcharge does not apply.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • terryjameswalker
    terryjameswalker Posts: 2 Newbie
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    House 1 = Main residence.
    House 2 = rental property
    House 3 = New main residence.

    Try and sell house 1 before buying and moving into house 3. (is the situation where we try and save the extra SDuty)
  • kingstreet
    kingstreet Posts: 38,764 Forumite
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    terryjameswalker wrote: »
    House 1 = Main residence.
    House 2 = rental property
    House 3 = New main residence.

    Try and sell house 1 before buying and moving into house 3. (is the situation where we try and save the extra SDuty)
    Providing the sale and purchase of 1 and 3 are concurrent, the surcharge won't apply.

    If you buy 3 before you sell 1, the surcharge will apply but it can be claimed back if completion of the sale of 1 takes place within 3 years of the completion of the purchase of 3.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • pinklady21
    pinklady21 Posts: 870 Forumite
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    Where in the UK are you buying? The above applies in England. The Stamp Duty rules in Scotland are slightly different. eg you would only have 18 months to sell your 1st house and reclaim the additional 3% paid on the purchase of house 3.
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