Will I be affected by the new stamp duty changes?Make Text Bigger
I currently live in a three bedroom house that I have a normal residential mortgage on. It has been my only residence since 2010.
However, due to changes in circumstances, I will be living on my own and no longer be needing the extra space within a couple of months.
One option I had in mind was to remortgage into a buy-to-let mortgage and move myself into a second residence which would be a much smaller one-bedroom rented apartment.
If I could get a half decent rate, I should be end up having enough money left over from rental income each month to subsidise my new rent in the one-bedroom apartment I move into (even after factoring in changes to how buy-to-let mortgages will be taxed).
My question is whether if I take this step after April, is there any way the stamp duty increase on purchases of a second residence might affect me?
Of course, there will be no new property purchase in my scenario. But would changing my current primary residence into a secondary residence post-April mean I have to make up the additional stamp duty charges buy-to-let’s will incur compared to the much lower rates I initially paid when I bought the property?
Basically, how are properties that were purchased before April 2016, but become second residences after that date, taxed for the purpose of stamp duty?
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