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Stamp duty tax on BTL

mike1292
mike1292 Posts: 2 Newbie
in House buying, renting & selling
Hi,

I'm looking at purchasing a BTL property with my girlfriend, we currently both don't have a residential mortgage though I sold a residential property in July this year.

Are we exempt from paying stamp duty tax due to us not owning a residential property at this moment in time?
The house purchase is £110k
Any advice would be great!
Mike

Comments

  • p00hsticks
    p00hsticks Posts: 12,804 Forumite
    First Post Name Dropper Photogenic First Anniversary
    00ec25 wrote: »
    you have read the rules?
    so what is it you do not understand?

    https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

    That link is about buying an additional property though.

    As the OP indicates they do not currently own a property (although they have in the past) , I think this link is more appropriate

    https://www.gov.uk/stamp-duty-land-tax/residential-property-rates
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    Combo Breaker First Post
    edited 8 September 2018 at 1:18PM
    p00hsticks wrote: »
    As the OP indicates they do not currently own a property (although they have in the past) , I think this link is more appropriate

    https://www.gov.uk/stamp-duty-land-tax/residential-property-rates
    nonetheless OP seems confused about the rules otherwise why write:
    purchasing a BTL property.... at this moment in time?
    it is a tax on purchasing additional property, not, as far too many people think, a tax on BTL.

    1st time buyers exemption: NO, it is not your home
    https://www.gov.uk/government/publications/stamp-duty-land-tax-relief-for-first-time-buyers-guidance-note

    higher rate SDLT: No, it is not additional
    https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

    standard rate SDLT: No, look at the thresholds!
    But when you buy a home to live in you will have to pay the higher rate on that purchase, so make sure your home costs less than the BTL, otherwise you have purchased in the wrong order and will pay more tax than you needed to.
  • dimbo61
    dimbo61 Posts: 13,716 Forumite
    Name Dropper Photogenic First Anniversary First Post
    Do you really want to buy a BTL property in the current climate ?
    Changes in taxation S24 means a higher rate taxpayer will struggle to make any money
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    First Anniversary First Post Name Dropper
    mike1292 wrote: »
    Hi,

    I'm looking at purchasing a BTL property with my girlfriend, we currently both don't have a residential mortgage though I sold a residential property in July this year.

    Are we exempt from paying stamp duty tax due to us not owning a residential property at this moment in time?
    The house purchase is £110k
    Any advice would be great!
    Mike


    Why do you want a BTL?
  • Computer_Beginner
    Computer_Beginner Posts: 269 Forumite
    edited 9 September 2018 at 7:35PM
    00ec25 wrote: »
    nonetheless OP seems confused about the rules

    But when you buy a home to live in you will have to pay the higher rate on that purchase, so make sure your home costs less than the BTL, otherwise you have purchased in the wrong order and will pay more tax than you needed to.

    If it's the same person buying, the second (additional) house purchased would need to be less than £40k, to avoid the additional rate SDLT.

    If OP wants to avoid that, he and girlfriend would need to purchase the houses under their separate names (ie one house each) and not get married until second house is purchased.

    Or buy the SECOND property abroad.

    That's my understanding of the rules.

    Personally, I don't know why they want to bother with a BTL property anyway. Way too much risk and hassle.
    Selling off the UK's gold reserves at USD 276 per ounce was a really good idea, which I will not citicise in any way.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    First Anniversary First Post Name Dropper
    dimbo61 wrote: »
    Do you really want to buy a BTL property in the current climate ?
    Changes in taxation S24 means a higher rate taxpayer will struggle to make any money


    The idea that BTL is a great investment is very very deeply ingrained in people`s thinking IMO.
  • kinger101
    kinger101 Posts: 6,280 Forumite
    First Anniversary Name Dropper First Post
    Crashy_Time wrote: »
    Why do you want a BTL?

    I think the clue is in the name.
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    First Anniversary First Post Name Dropper
    kinger101 wrote: »
    I think the clue is in the name.


    Why would you want the hassle in this market though, as property and especially rental/second property becomes a massive tax target?
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