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Where Taxpayers and Advisers Meet

When does a property become a main residence?

K8
Posts:1
Joined:Tue Feb 20, 2018 11:36 am
When does a property become a main residence?

Postby K8 » Tue Feb 20, 2018 11:44 am

My husband and I each own a flat from before we married. Husband lived in his own flat for a year and then moved into mine where we have lived jointly for last 3 years. His flat was rented out for 2 years and then unoccupied.

We are now selling my flat (now) and buying a family home (wihin next 6 months). We will keep his flat for rentIng out. We will thus be replacing our main residence and should not pay the 3% surcharge. The wrinkle however is that we may need to live in his as a stopgap measure for up to 6 months. Will this mean it risks becoming our new main residence so that we have to pay the surcharge when we find the new home?

Anyone come across this please?

SDLT Geek
Posts:232
Joined:Sun Apr 30, 2017 5:45 pm

Re: When does a property become a main residence?

Postby SDLT Geek » Tue Feb 20, 2018 9:33 pm

It does not matter whether or not your husband's flat becomes your main residence inbetween the sale of your joint current main residence and the purchase of a replacement one within three years. It is important that no "major interest" in a property intended to be a main residence is acquired in the meanwhile. So it would be safest not to transfer a share in the ownership of your husband's flat in this period. There is more about the replacement exception here: https://www.zoopla.co.uk/discover/buying/stamp-duty-land-tax-3-surcharge-replacement-of-an-only-or-main-residence-and-the-all-important-three-year-rule/


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