2nd Property Stamp Duty

[zedx19]

Hoping someone can help as it seems confusing.

I have a house I let which my tenants have expressed interest in now buying. Our family home we've outgrown and are currently getting valued and ready to market. The new house we wish to buy will be valued at 350k max. If I sell the family home and buy a new home before selling the renatal property I'm liable for 17,200 stamp duty. If I sell the rental before buying a now home, stamp duty drops to 7000.

I've read about being to claim the difference back if the main residence is sold within 3 years, but obviously the house in question is not the main residence, it's a BTL. I own no other property so it seems unfair if I have to pay 17.2k stamp duty, only to then sell the BTL in a few months down the line.

Any help would be much appreciated.

[Benbay001]

I thought second home stamp duty only applied if buying an additional second home.
If you own 2 homes, sell 1 and buy another, then normal stamp duty applies.

Im sure someone will correct me soon.

[2 sMoKiN bArReLs]

Benbay001 said:

I thought second home stamp duty only applied if buying an additional second home.
If you own 2 homes, sell 1 and buy another, then normal stamp duty applies.

Im sure someone will correct me soon.

Surely (don't call me Shirley ) you'd need to sell both & buy one for the new purchase not to be a second property ?

[2 sMoKiN bArReLs]

We fell foul of this.

I lived in my own house, girlfriend lived in hers. She sold hers & moved in with me. We jointly bought a house to move into. We had to pay the extra 3% on this house because technically it was a second house for me.

Good news is when we moved into new house, then mine sold we got £18,000 back. Refund process was very simple & quick.

[zedx19]

It would appear so long as you're replacing your main residence, the extra duty is not applicable. Annoyingly the solicitor I asked about this claimed I would be liable for higher duty and wasn't aware of the main residence clause, which means I won't be using that solicitors!

https://www.zoopla.co.uk/discover/buying/q-a-new-3...

"A owns both a main residence and a second home. She sells her main residence and purchases a new one. Although she has two properties at the end of the day of the transaction, she has replaced her main residence so the higher rates will not apply."
Read more at https://www.zoopla.co.uk/discover/buying/q-a-new-3...

[zedx19]

For anyone else that comes across this, I found info on the governments website -> https://www.gov.uk/stamp-duty-land-tax/residential...

"You will not pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold.

If there’s a delay selling your main residence and it has not been sold on the day you complete your new purchase:

you’ll have to pay higher rates because you own 2 properties
you may be able to get a refund if you sell your previous main home within 36 months"

[Sarnie]

If you will own more properties after the transaction, than before the transaction, you'll pay the extra stamp........