Am I liable for additional SDLT?

[AdamT]

I hope someone might be able to help me.

My wife and I are currently going through the process of buying a house to live in as our sole main residence. I already own a buy to let property, which I have never lived in. We have both been renting for the past 6 years, and my wife has never previously owned a property.

However, I did have a 50% share in a house from 2009 - 2011 which I lived in as my sole main residence with my ex-partner. I moved out in 2011 and my ex-partner bought out my share in the house, and as mentioned above, I started renting, as opposed to buying another property. Until now.

Would the circumstances described above count as a replacement of main residence exemption, as long as our new house was bought before 26th November 2018? I suspect that it seems too good to be true and that there will be a reason somewhere for us being liable for the additional SDLT, but I wondered if anyone could confirm. Many Thanks.

[SDLT Geek]

It seems clear to me that you can rely on the exception from the higher rates of stamp duty land tax for additional dwellings (HRAD or the 3% surcharge) so long as you complete the purchase of your new home by 26 November 2018 as you suggest.

This does depend on your previous 50% share counting as a "major interest". Although there could be an argument as to whether the words "major interest" include shares in property, it is clear from the scheme of the legislation that shares in properties are major interests. That is HMRC's view too. They changed the legislation with effect from the Autumn 2017 Budget to say that where one is relying on a disposal of a major interest in a previous residence, one has to dispose of one's entire interest in it (effective for most purchases completing on or after 22 November 2017). From what you say it seems clear you did dispose of the whole of your interest in the house you owned with your ex partner.

[AdamT]

Thank you very much for your reply. It sounds hopeful then. I have raised the issue with my conveyancing solicitor, so I hope that he shares a similar viewpoint to yourself. It really will save thousands if the exemption is applicable. Thanks again.