Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • 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
    • 6,476 Posts
    • 6,999 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
    • 7,177 Posts
    • 6,879 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
    • 10,071 Posts
    • 5,451 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
    • 6,791 Posts
    • 2,505 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
    • 269 Posts
    • 150 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
    • 6,791 Posts
    • 2,505 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
    • 4,489 Posts
    • 6,228 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
    • 6,791 Posts
    • 2,505 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?
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

119Posts Today

1,487Users online

Martin's Twitter
  • RT @laurawithers84: @MartinSLewis Our school is going to use your book for our new finance fortnight for year 8 students. We thought we wou?

  • RT @katiejane13uk: ????????IMPORTANT - CALLING ALL LEASEHOLDERS TO COMPLETE???????? @mhclg Leasehold Reform Consultation closes this month. This is the?

  • Just sent a text about postgrad loans. My Swype text auto-corrected it to pothead loans. Does it know something I don't?

  • Follow Martin