Which Stamp Duty for new residential property?

Which Stamp Duty for new residential property?

15:48 PM, 29th December 2015, About 6 years ago 31

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I have a scenario in which I would like to know if the normal or extra stamp duty (second home or buy to let) thresholds will apply. stamp

Currently I have a small number of rented out properties. One of which I have lived in for some periods of time (circa 3 years or more) before I have rented it out.

I am considering going away for a year and will likely rent out my existing residential property.

When I come back I may be looking to purchase a new property as my main residential residence. Will this be subject to the normal stamp duty fees or the ‘second home’ fees. I would appreciate some clarification.

Thank you



by Dwayne Creighton

11:02 AM, 2nd January 2016, About 6 years ago

Reply to the comment left by "stuart edwards" at "02/01/2016 - 10:42":

Thanks Stuart I've just read the consultation but I must have missed that. Thanks for the advice, we'll consider that before parting with potentially £5000 plus of our hard earned money to this government.

by English Desi

11:10 AM, 2nd January 2016, About 6 years ago

Reply to the comment left by "Adrian Bond" at "30/12/2015 - 16:14":

Hi Adrian,

This appears to be a grey area in the consultation paper and I would suggest e-mailing the consultation team to make your views known.

Under the situation you describe, you would be liable for the 3% extra SDLT.

I am in the same boat in that I rent out my flat on a BTL mortgage and live with my parents, I am looking to buy a place to live in - under the consultation rules I am not exempt from paying the 3% extra,

My situation would be different had I been living in my own house as I would be changing my 'main residence' and I would be exempt from the new rules.

by stuart edwards

11:11 AM, 2nd January 2016, About 6 years ago

Reply to the comment left by "Dwayne " at "02/01/2016 - 11:02":

Actually I may be wrong....I read the consultation article when it first came out and was sure that my interpretation was correct. I've just had a quick look again and it clearly states that someone who owns a buy to let but not a residential WILL be subject to sdt if they buy a residential property. That clearly seems unfair given that portfolio holders with a residential property will not be affected!

by Tony Evans

16:28 PM, 2nd January 2016, About 6 years ago


useful link which answers questions about S. It is only a consultation paper but mentions different scenarios

essentially if you're not selling a residential and have more than one property at the end of the transaction you will pay the higher level

by Darran Lebas

15:23 PM, 4th January 2016, About 6 years ago

Hi guys,

This has got me very nervous and I'm struggling to know whether this may affect me or not?

Currently I own a residential property and I also co-own a buy-to-let flat with my brother. I'm hoping to sell my residential property in the next few years and buy a larger family home. Can somebody please explain whether I'll be subject to the higher rate stamp duty because of my buy-to-let?

I've concluded from reading the document that I shouldn't be affected as I'm selling my current home and buying another.

So, from top to bottom on the flow chart, I own Two+ properties and the property being purchased is replacing my main residence = The transaction is not subject to the higher rates....

Is this correct?


by Darran Lebas

20:52 PM, 5th January 2016, About 6 years ago

Can anybody put my mind to rest to my question above 😉

by Pam Thompson

21:42 PM, 5th January 2016, About 6 years ago

Reply to the comment left by "WAD " at "05/01/2016 - 20:52":

The main theme of the new stamp duty rules seems to be that if you already have BTL property, you can still have one main residence in addition either now or in the future. You cannot buy a second 'home' without the increased stamp duty after 1 April. The consultation document outlines a number of different scenarios which you may find helpful to read.

by Darran Lebas

13:25 PM, 6th January 2016, About 6 years ago

Thanks for confirming Pam, I was starting to panic a little!!

by Daniel 54

0:21 AM, 7th January 2016, About 6 years ago

Reply to the comment left by "Pam Thompson" at "05/01/2016 - 21:42":

If you own BTL and buy a second residential property on or after the 1st April 2016,the second property is subject to the additional SDLT even if it is purchased as a main residence

This will not affect WAD as he/she will own two residential properties prior to 1st April 2016,one of which is currently the main residence. The selling and replacement of that main residence after that date is not subject to the surcharge

So if you already own one property it is not correct to say that the purchase of a main residence in addition after 1st April 2016 will be exempt - the intention as set out in the consultation is that it won't be

by Simon Lever

12:24 PM, 11th January 2016, About 6 years ago

Reply to the comment left by "WAD " at "04/01/2016 - 15:23":

If the main residence hasn’t been sold before the new main home is acquired the 3% supplement must be paid on the purchase of the new property. However, where the former home is sold up to 18 months after the new acquisition, the SDLT supplement can be reclaimed. If it takes more than 18 months to sell the former home – no SDLT refund will be due.
If the old and new main residence are sold on the "same day" (can be as long as 14 days in length!) then no SDLT will be paid.

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