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  • FIRST POST
    • mike1292
    • By mike1292 8th Sep 18, 12:47 PM
    • 2Posts
    • 0Thanks
    mike1292
    Stamp duty tax on BTL
    • #1
    • 8th Sep 18, 12:47 PM
    Stamp duty tax on BTL 8th Sep 18 at 12:47 PM
    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
Page 1
    • p00hsticks
    • By p00hsticks 8th Sep 18, 1:01 PM
    • 6,379 Posts
    • 6,912 Thanks
    p00hsticks
    • #2
    • 8th Sep 18, 1:01 PM
    • #2
    • 8th Sep 18, 1:01 PM
    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
    Originally posted by 00ec25
    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
    • By 00ec25 8th Sep 18, 1:14 PM
    • 6,962 Posts
    • 6,649 Thanks
    00ec25
    • #3
    • 8th Sep 18, 1:14 PM
    • #3
    • 8th Sep 18, 1:14 PM
    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
    Originally posted by p00hsticks
    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.
    Last edited by 00ec25; 08-09-2018 at 1:18 PM.
    • dimbo61
    • By dimbo61 8th Sep 18, 7:27 PM
    • 10,010 Posts
    • 5,403 Thanks
    dimbo61
    • #4
    • 8th Sep 18, 7:27 PM
    • #4
    • 8th Sep 18, 7:27 PM
    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
    • By Crashy Time 9th Sep 18, 6:41 PM
    • 6,514 Posts
    • 2,437 Thanks
    Crashy Time
    • #5
    • 9th Sep 18, 6:41 PM
    • #5
    • 9th Sep 18, 6:41 PM
    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
    Originally posted by mike1292

    Why do you want a BTL?
    • Computer Beginner
    • By Computer Beginner 9th Sep 18, 7:32 PM
    • 166 Posts
    • 72 Thanks
    Computer Beginner
    • #6
    • 9th Sep 18, 7:32 PM
    • #6
    • 9th Sep 18, 7:32 PM
    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.
    Originally posted by 00ec25
    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.
    Last edited by Computer Beginner; 09-09-2018 at 7:35 PM.
    • Crashy Time
    • By Crashy Time 10th Sep 18, 10:36 PM
    • 6,514 Posts
    • 2,437 Thanks
    Crashy Time
    • #7
    • 10th Sep 18, 10:36 PM
    • #7
    • 10th Sep 18, 10:36 PM
    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
    Originally posted by dimbo61

    The idea that BTL is a great investment is very very deeply ingrained in people`s thinking IMO.
    • kinger101
    • By kinger101 10th Sep 18, 10:39 PM
    • 4,466 Posts
    • 6,208 Thanks
    kinger101
    • #8
    • 10th Sep 18, 10:39 PM
    • #8
    • 10th Sep 18, 10:39 PM
    Why do you want a BTL?
    Originally posted by Crashy Time
    I think the clue is in the name.
    • Crashy Time
    • By Crashy Time 14th Sep 18, 7:19 PM
    • 6,514 Posts
    • 2,437 Thanks
    Crashy Time
    • #9
    • 14th Sep 18, 7:19 PM
    • #9
    • 14th Sep 18, 7:19 PM
    I think the clue is in the name.
    Originally posted by kinger101

    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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