Stamp duty question - Main residence for landlord

[Eric Mc]

Bcox91 said:

Thanks all, I know the extra tax is aimed at those investing in a 'buy to let' or a 'second home' in theory I'm doing neither, as my 'home' is currently my parents house!

I don't think I fall into the category of paying higher rate SDLT in theory, but as I do presently own other UK property (but to lets) it may apply. I'll have to see what happens in Marchs budget!

Good old George Osborne!

You own more than one property already. You WILL pay the extra 3% on any further properties you buy.

If one of the new properties you own eventually becomes your main residence, you will be able to reclaim any additional SDLT you have had to pay PROVIDED it becomes your main residence within 18 months of the date of purchase.

[mph1977]

Eric Mc said:

Bcox91 said:

Thanks all, I know the extra tax is aimed at those investing in a 'buy to let' or a 'second home' in theory I'm doing neither, as my 'home' is currently my parents house!

I don't think I fall into the category of paying higher rate SDLT in theory, but as I do presently own other UK property (but to lets) it may apply. I'll have to see what happens in Marchs budget!

Good old George Osborne!

You own more than one property already. You WILL pay the extra 3% on any further properties you buy.

If one of the new properties you own eventually becomes your main residence, you will be able to reclaim any additional SDLT you have had to pay PROVIDED it becomes your main residence within 18 months of the date of purchase.

If it becomes the sole property you own.

[Eric Mc]

Yes.

(As far as we know for the moment).

[AndStilliRise]

Stupid fking tax rule.

[Welshbeef]

AndStilliRise said:

Stupid fking tax rule.

You say that me X now with less demand to get into the housing ladder would disagree.

I don't agree with the policy.

[chrishumes1978]

Right, so am i right in thinking....

I own a btl. I live in a house im going to sell and buy another. How much stamp duty?

[Jockman]

Normal, not enhanced rate. Your legals will sort out for you.

[dmahon]

This rule seems to be misunderstood and I suspect some people are paying the extra 3% needlessly.

If you own 100 BTLs but *replace* your main residence the the additional tax does not apply.

If the OP could have justified the property as his main residence in 2016, then sold it, he wouldn’t have been liable for the extra tax.

[Groat]

If you and your wife both own btls separately, and both live in a house as your marital main residence which was bought in your name only, and you both decide to sell it and move to another house which becomes your marital main residence but bought this time in your wife's name only, is the enhanced stamp duty payable?

[Sarnie]

Groat said:

If you and your wife both own btls separately, and both live in a house as your marital main residence which was bought in your name only, and you both decide to sell it and move to another house which becomes your marital main residence but bought this time in your wife's name only, is the enhanced stamp duty payable?

My interpretation is yes, because your wife will own more property than she did before the purchase........but I'm not the expert!

[JulianPH]

Sarnie said:

Groat said:

If you and your wife both own btls separately, and both live in a house as your marital main residence which was bought in your name only, and you both decide to sell it and move to another house which becomes your marital main residence but bought this time in your wife's name only, is the enhanced stamp duty payable?

My interpretation is yes, because your wife will own more property than she did before the purchase........but I'm not the expert!

Jockman is 100% correct here, providing the 3 year rule applies.

It is the replacement of a residential property, not the purchase of a property in addition to your residential property and therefore exempt from the higher rate.

I hope you are all having a great Christmas!

[TeamBigfoot]

If i own a current residential property (where i live) and I buy another property to move my family in to with the aim of letting out my current property, will I have to pay the additional stamp duty charge?

At present I only have the one property.

[dmahon]

TeamBigfoot said:

If i own a current residential property (where i live) and I buy another property to move my family in to with the aim of letting out my current property, will I have to pay the additional stamp duty charge?

At present I only have the one property.

Yes you will need to pay the additional. The only exception is if you are replacing your main residence I.e selling the original one)

[lewisf182]

dmahon said:

TeamBigfoot said:

If i own a current residential property (where i live) and I buy another property to move my family in to with the aim of letting out my current property, will I have to pay the additional stamp duty charge?

At present I only have the one property.

Yes you will need to pay the additional. The only exception is if you are replacing your main residence I.e selling the original one)

I own a couple BTL’s and do up property on the side and it always confuses me but after many discussions with accountants etc i’ve reached a conclusion that the key word is ‘disposal’. You have to have disposed of a main residence to not be charged the extra tax. If you don’t dispose prior to acquiring your next main residence, then you will pay the extra stamp, upon sale of your previous main residence you can then claim this extra tax back as long as it’s done within 3 years of starting your new main residence.

[JulianPH]

dmahon said:

TeamBigfoot said:

If i own a current residential property (where i live) and I buy another property to move my family in to with the aim of letting out my current property, will I have to pay the additional stamp duty charge?

At present I only have the one property.

Yes you will need to pay the additional. The only exception is if you are replacing your main residence I.e selling the original one)

There is a 3 year window to sell your current home after purchasing a new one, in which you can then reclaim the additional rate back from HMRC.

You solicitors can deal with this for you.

[TeamBigfoot]

thank you all - much appreciated