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First time buyer, BTL before home. Higher SDLT?


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Hi!

 

If I buy a BTL as a first time buyer (of any property ever) and then I later purchase a home for me to live in (without selling the buy to let), will I be liable for the higher rate of SDLT?

 

The reason I ask is I have read that you avoid the higher rate of SDLT on your home if it's your main residence and is replacing a former main residence sold within the previous three years.

 

Obviously in my scenario, I would not be replacing a former main residence as I don't have one to replace!

 

I do have reasons for buying the BTL first.

 

Does anybody know? Any signposting on where there is written guidance would be very appreciated also.

 

Thanks!

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Your btl purchase will attract the 3% SDLT surcharge

The purchase of your main home will not attract the 3% surcharge. You won't need to sell your btl 

The idea is that everyone should have 1 property to live in, that doesn't attract the SDLT surcharge or CGT upon sale. Even if you have 100 investment properties on this side, you are still allowed to have one (and only one) 'main home.' This main home has significant tax benefits
 

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Vin Gupta
Property Investor and Developer
UK Property Blog: https://evolutionblogger.com/article/uk-property-articles
Travel Blog: https://soulfultravelguy.com/

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