Higher Rate Stamp Duty Landlords

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    Higher Rate Stamp Duty Landlords

    Hi all,

    Two questions for you all. One is straight forward, the other maybe not so much. Interested in reading your thoughts/guidance.


    1) I have 3 rental properties, and one main residence, if I purchase a new home and sell my main residence in the process, despite keeping my rental properties in the background, I won't be subject to higher rate SDLT, correct?



    2) If I want to convert my current main residence into a buy to let, are there any options available to do this without having to pay higher rate SDLT when I do come to purchase a new residential purchase?


    I imagine my timeline for buying a new home is around 12months from now.



    thanks,


    Geddy

    #2
    I think as you own 3 other properties you may be expected to pay the premium SDLT on your new purchase main residence or not. I'm not sure converting a residential property to a BTL will incur SDLT as long as the owners remain the same.

    Comment


      #3
      That's not the guidance I appear to be reading on https://www.gov.uk/stamp-duty-land-t...property-rates

      "If you’re replacing your main residence

      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."

      Comment


        #4
        Provided the sale and purchase of your main residence are simultaneous, you shouldn't have to pay the higher rate.
        If you buy before you sell, you would have to pay and claim a refund.

        If you convert your residence to a BTL and then buy a new residence, you will have to pay the higher rate and then have a limited time (12 months after filing the relevant tax return - or 12 months if you don't complete a relevant tax return) to complete on a new property and claim a refund.
        As I am not at all clear what a tax return relating to the new residence would actually be, I am not 100% sure what the value of that element of the advice is, so the deadline looks like 12 months to me.
        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).

        Comment


          #5
          Sorry I didn't quite get the second paragraph of that jpkeates

          What leads you to believe i'd be able to get a higher SDLT refund after 12months if my main residence is converted to a BTL by the time of purchase of a new residence?

          Comment


            #6
            Sorry, I'm suggesting that if you sell your home, buy a new property, convert it to a BTL and buy a new home, there can't be more than 12 months between the first and last events.
            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).

            Comment


              #7
              https://www.gov.uk/government/consul...ial-properties

              A refund can be claimed if the former home is sold withing 18 months after buying the new home and paying the extra 3% sdlt.

              If you convert your former home to BTL , then you don't qualify for the refund.

              Comment

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