Stamp Duty!

[911Alan]

Gents,

I currently own a rental property alongside my home, so 2 properties in total. Both have been owned for a good few years now.
I am looking to move home soon, so will be selling my home to purchase another. I was speaking to the agent who manages my rental property and he seems to think that I will have to pay the Stamp Duty rate for additional properties.
However, from my understanding after reading the HMRC site as I will be replacing my main residence I don't believe I should have to pay the higher rate.

HMRC site quote: 'If you already have 2 or more properties, and you sell your main residence, you won’t have to pay the higher rate if you buy a new main residence within 3 years.'

Can anyone clear this up? Who's right?

Edited by 911Alan on Tuesday 26th July 19:18

[MrChips]

HMRC are right.

If you're worried, talk to them and they'll confirm, as would your solicitor. Surprised agents aren't properly clued up on it as them telling people they'll have to pay when they won't isn't exactly likely to boost business!

[911Alan]

Just what I thought. He was so adamant too!

[Rangeroverover]

+1

If you are selling your main house and replacing it with another no extra 3% SDLT

[14-7]

Strangely my solicitor has said I'd have to pay the higher rate on a new purchase as our current home hasn't sold and wouldn't be able to claim it back due to owning 5 BTL's yet when I rang HMRC they said I would.

Weird how some solicitors aren't understanding the situation properly.

[911Alan]

My Parents Solicitor seems to misunderstand the rules also, as he was under the impression I would have to pay the additional stamp duty?

I only have 1 BTL which is jointly owned between me and my sisters, other than that I only own the house I currently live in

Anyway I guess I will find out for sure soon as I have just had an offer accepted on a new home and mine goes on the market Monday, so I will be needing to instruct my own Solicitor soon anyway!