SDLT & selling main residence to fund BTL

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    SDLT & selling main residence to fund BTL

    Hi! I have what might be a slightly unusual situation in that I am currently considering selling my main residence (and only property) to fund the purchase of a BTL which is already tenanted. Having read the government consultation and lots of forum posts, I still have two questions that I would appreciate opinions on:

    1. I was, rightly or wrongly, under the impression that if I complete the sale and purchase on the same day, I will not be charged the additional new 3% SDLT as at the end of the day of transaction I will still only own 1 property. Is this correct, even if I have no intention of moving into the purchased property?

    2. What if I can't complete both the purchase and sale on the same day and the sale occurs, say, three months later? Will I be eligible for a refund of the additional SDLT paid on purchasing the BTL? I had, again, thought so, as I will be selling my main residence within the (proposed) required 18 month period. However, my situation isn't sited as an example in the consultation document and I am now worried that the fact that the BTL won't actually become my main residence may mean that I won't be eligible for a refund later?

    I appreciate that the exact rules regarding the new SDLT aren't currently known, and may still not be known in detail following the budget, but I would still appreciate people's thoughts and interpretations of the proposed new rules relating to my situation as I may want to offer on a property next week!

    TIA!

    #2
    I have only read the consultation document, same as you, but I believe:

    1. No. Additional 3% not due.
    2. Yes, eligible for refund if property sold within 18 months.
    There is a fine line between irony and stupidity. If I say something absurd please assume that I am being facetious.

    Comment


      #3
      Unless the situation is very unusual, selling your own home to fund a BTL almost never works out to be a good idea.
      SDLT aside.
      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


        #4
        Thanks very much for the replies!

        Comment


          #5
          Any reason for not wanting to rent out your main residence ?

          Comment


            #6
            Because the new property will offer us much better flexibility for the future and also (hopefully) a better capital return.

            Comment

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