Second Home SDLT

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    Second Home SDLT

    I just want some clarification on a scenario.

    Say I lived abroad and had a buy to let property in England.

    I want to move back to England and so buy a second property for £500,000 which will become my main residence.

    Do you think it would be cheaper to:

    1) Just buy a 500k house I like and pay the second property additional SDLT.

    Or

    2) Buy a very cheap house/flat around 150k/200k, pay the second property additional SDLT (which will be less than the 500k house), live there until it's classed as my main residence then buy the 500k house I really want without paying the extra SDLT as I'm only changing my main residence?

    #2
    It doesn't work like that - you pay the additional 3% on any property above the first that you own.
    There's a transitional allowance, to help people who sold their home and haven't bought a new one who might otherwise have been caught out., but it wouldn't apply in your scenario.
    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


      #3
      and that "own" is anywhere in the world, just in case you have property overseas also.

      I think you may be confusing SDLT on purchase with the CGT that would be due if you sold a house that wasn't classed as your main residence. As jpkeates pointed out, SDLT is calculated differently.

      Comment

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