Stamp Duty queries

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    Stamp Duty queries

    Hi there,

    I am currently having one residential property. I am buying a residential property and making the current residential property as let to buy.

    Do I have to pay 3% additional surcharge?

    If my new residential purchase price is £452,000, please help me to calculate the Stamp Duty.

    Thanks and regards.

    I regret to say that you are liable for the premium on SDLT and based on a purchase price of £452000 that would amount to £26160. This is an extortionate amounted Pay but one which for the present is helping fill the tax coffers.


      Hello Loanarranger,

      Thanks for your prompt reply. However, I found the following on the below link:

      "You’ll usually have to pay 3% on top of the normal SDLT rates if buying a new residential property means you’ll own more than one."

      But as I am converting my current residential property into a buy to let, will I be still considered to have two residential property at the end of the transaction?

      Thanks in advance.


        There is sometimes confusion about this. If you keep your main residence I am pretty sure you will have to pay the 3% extra. If you have other properties that are not your main residence, but sell your main residence within 3 years, I am being lead to believe you would get a refund!!


          Originally posted by abc777uu View Post
          But as I am converting my current residential property into a buy to let, will I be still considered to have two residential property at the end of the transaction?
          I can't speak for loanarranger, but yes.

          You have a property you live in and buy another.

          If you sell the first one as you buy the second (standard chain scenario), you only have one property at the end of the day of completion, so no second property surcharge is owe.

          You can buy another property to live in without selling the first, when you move into it you would have two properties.
          So the second one is subject to +3% surcharge.
          If you sell the first property within (I think 18 months - the 3 years may have been a transitional arrangement, I forget), you can reclaim the 3% surcharge as you only have one property and the second was simply a timing issue.

          You will continue to have two properties and will not be in a position to reclaim the surcharge.

          Which is exactly the point of the tax - to make multi property ownership less attractive and increase the tax take.
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


            Thanks all..much appreciated.


              I didn't even have to open my mouth in clarification , thanks JPkeates , cheque in the post.


                Yes i am in a similar position as i own investment properties in uk but no main residence, i m now looking to buy a house to live in. Therefore i have to pay the higher stamp duty, its painful thinking about it at first but after a while you just get used to it.

                you can always let it for a while to recoup the outlay.


                  Poolboy, No you can’t, if you are applying for a residential mortgage , it is on the strict understanding that you live in it and definitely do not let it out to recoup the SDLT, that is fraud by virtue of procuring a mortgage by uttering a false declaration. If circumstances dice that you have to move away for legitimate reasons a lender may consider a Consent to Let but the reasons have to be plausible and not perceived as trying to circumvent the processes for which we are all expected to abide with even though the premium over normal SDLT is in my honest opinion iniquitous.


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