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Can't work out if I need to pay the higher rate SDLT

Fruitloop80
Fruitloop80 Posts: 7 Forumite
First Anniversary
in House buying, renting & selling
Hi,
I split up with my wife a couple of years ago (she remained in the marital home while I have been privately renting) and we have a BTL in joint names which we are keeping.
We are currently finalising the process of having me taken off the title deeds of the marital home and I am buying another house to live in.
Can anyone advise if I will pay the higher rate of SDLT on my new home? I am in Scotland and the purchase price will be less than £145k.

Thanks
«1

Comments

  • G_M
    G_M Posts: 51,977 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    So
    * you own a BTL and are buying a 2nd property?
    * you live in rented, so are not selling your main residence.


    If this were England you'd pay the additional 2nd property SDLT.


    But Scotland may be different......
  • Fruitloop80
    Fruitloop80 Posts: 7 Forumite
    First Anniversary
    Yes I own a BTL and am currently living in rented so not selling my main residence.

    Thanks
  • Skibunny40
    Skibunny40 Posts: 436 Forumite
    First Anniversary Name Dropper First Post
    As I understand it, the LBTT Additional Dwelling Supplement would apply...and it's going up to 4% from 25th January so be quick if you only want to pay 3%...your solicitor will be able to advise you though.
  • Fruitloop80
    Fruitloop80 Posts: 7 Forumite
    First Anniversary
    Thanks for your reply.

    I've budgeted for the higher rate but I was hoping that because I was buying a new house as my main residence it would be exempt. I guess my solicitor will keep me right though. Just trying to work things out in my head!
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    Combo Breaker First Post
    Fruitloop80 wrote: »
    Hi,
    I split up with my wife a couple of years ago (she remained in the marital home while I have been privately renting) and we have a BTL in joint names which we are keeping.
    We are currently finalising the process of having me taken off the title deeds of the marital home and I am buying another house to live in.
    Can anyone advise if I will pay the higher rate of SDLT on my new home? I am in Scotland and the purchase price will be less than £145k.

    Thanks
    I note posters have ignored your separation

    your current rental property is I assume a short lease so is ignored for the purposes of whether you are replacing your main home or not.

    you need to check the rule re 18 months time limit after "separating" and the rule around divorce (if you are now completing that legal stage)

    you are disposing of what was previously your main home....
  • Fruitloop80
    Fruitloop80 Posts: 7 Forumite
    First Anniversary
    Yes 00ec25 my rental agreement is a short assured tenancy agreement.

    I've had a look on the gov.uk website but can't find any reference to the 18 month time limit. Do you mean you need to be separated for at least 18 months to be exempt from the additional stamp duty or purchase your new main residence within 18 months?
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    Name Dropper First Post Photogenic First Anniversary
    Fruitloop80 wrote: »
    Hi,
    I split up with my wife a couple of years ago (she remained in the marital home while I have been privately renting) and we have a BTL in joint names which we are keeping.
    We are currently finalising the process of having me taken off the title deeds of the marital home and I am buying another house to live in.
    Can anyone advise if I will pay the higher rate of SDLT on my new home? I am in Scotland and the purchase price will be less than £145k.

    Thanks

    The answer to the question you asked is no, you won't have to pay the higher rate of SDLT on the purchase. You won't need to pay any SDLT at all since you are in Scotland.

    Your purchase will mean paying LBTT and I think it might include the Additional Dwelling Supplement since you separated "a couple of years ago" so I'm not sure the marital home still counts as your main residence since you've been living elsewhere. As of 25th January 2019 the ADS rate will be an extra 4% not 3%.

    The Revenue Scotland website is as clear as mud though. You can go round and round in circles getting close to the information you want but never quite making it.
  • Fruitloop80
    Fruitloop80 Posts: 7 Forumite
    First Anniversary
    Thanks Pixie5740

    Yes the Revenue Scotland isn't very clear. None of the examples seemed to quite fit with my scenario hence my post on here.
    The online calculator states that ADS is a supplement due when someone buys an additional residential property for example, a second home such as a holiday home or an additional home to rent out.
    We separated in October 16 if that makes any difference.

    Thanks
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    Name Dropper First Post Photogenic First Anniversary
    Fruitloop80 wrote: »
    Thanks Pixie5740

    Yes the Revenue Scotland isn't very clear. None of the examples seemed to quite fit with my scenario hence my post on here.
    The online calculator states that ADS is a supplement due when someone buys an additional residential property for example, a second home such as a holiday home or an additional home to rent out.
    We separated in October 16 if that makes any difference.

    Thanks

    You would be purchasing an additional dwelling since you already own a BTL and will be purchasing another property in addition to it. That's why I think the ADS will apply. I don't think the marital home counts as your main residence anymore.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    First Anniversary Name Dropper First Post Photogenic
    OP says he is being "taken off the title deeds".
    This implies, he is giving it away.
    Seems to me there's a possibility that if ex wife pays him something for it, even £1, then since he is selling his previous residence, he is OK.
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