SDLT when moving out of main residence which is currently a rental.

[cassian 0]

Hello,

I think this could be an easy one for someone who's more clued up than I.

I'm planning a property purchase (additional to property I already own) to move into and refurbish, prior to moving out and letting it out.

My main residence at the minute is a rental and I'll be moving from here to the new property. Does this mean that the purchase will be replacing my main residence and thus a SDLT reduction possible?

Thanks a lot!

Cass

[onkar 32]

Hi Cass,

IF you sell your current property, and replace with a new one, then you pay the reduced SDLT.

Considering you are buying an additional property, and keeping the existing, then you will be liable for the additional Stamp Duty.

[cassian 0]

Hi Onkar,

Thanks for your reply.

By my ' my main residence being a rental' I meant that I'm living in a property that I am renting. Perhaps I've used the term 'main residence' incorrectly, but the way I read it, if the properties I already own are let out, therefore not my main residence, then effectively I'm replacing my main residence (the rented property) with the one I'm hoping to purchase....

 

[onkar 32]

32 minutes ago, cassian said:

Hi Onkar,

Thanks for your reply.

By my ' my main residence being a rental' I meant that I'm living in a property that I am renting. Perhaps I've used the term 'main residence' incorrectly, but the way I read it, if the properties I already own are let out, therefore not my main residence, then effectively I'm replacing my main residence (the rented property) with the one I'm hoping to purchase....

 

Ahhh, even so, based on this comment "I'm planning a property purchase (additional to property I already own)", you will still pay the additional Stamp Duty.

IF you was living in a Residential property that you owned, and was going to replace by another Residential property, then you would not pay the additional Stamp Duty on the new property.

However, considering your existing property you live in is rented by yourself, and you already own other property, your purchase of your new Residential will be liable for additional Stamp Duty.

I was in a similar scenario to you, I was living with my parents and I owned 2 BTL's at the time. When I moved out to my own Residential property, I had to pay the higher Stamp Duty.

[cassian 0]

Ok. Thanks for your help Onkar!

[mallbn09 0]

On 5/17/2020 at 8:22 PM, onkar said:

Ahhh, even so, based on this comment "I'm planning a property purchase (additional to property I already own)", you will still pay the additional Stamp Duty.

IF you was living in a Residential property that you owned, and was going to replace by another Residential property, then you would not pay the additional Stamp Duty on the new property.

However, considering your existing property you live in is rented by yourself, and you already own other property, your purchase of your new Residential will be liable for additional Stamp Duty.

I was in a similar scenario to you, I was living with my parents and I owned 2 BTL's at the time. When I moved out to my own Residential property, I had to pay the higher Stamp Duty.

Hi Onkar,

I am in a situation where I do not own any property (and currently renting where I live), and want to buy my first BTL whilst still renting my current place of living. Will I be eligible for first time buyer relief even though I plan on buying the property solely to rent out?

Thanks in advance for your help.