Replacement of main residence for SDLT?

[rajpal_bal]

HI all,

I posted not so long ago on an issue where I was living with my parents and currently own 3 BTL's. In the event I purchase a residential property for me to live in then is this classed under the additional rates and therefore subject to increase SDLT? I have no beneficial interest in my parents house.

thank you. feedback most welcome.

[bd6759]

You are liable to additional 3%.

This is because at the time of the purchase you will own 2 or more properties and you have not replaced your main residence.

Replacing your main residence means selling a property that was once your residence.

[rajpal_bal]

Thanks for your reply.

I do not have a main residence to replace. Surely this means i do not pay additional stamp tax?

I have lived with my parents since birth.

[bd6759]

No. The extra 3% applies because you have 3 other properties, not because you lived with parents.

Sell the other properties before you buy your new house, then you won't have to pay the extra 3%.

[SDLT Geek]

I agree with the other posters. Provided at least one of the properties you own at the date of your upcoming purchase is worth £40K or more then the higher rates will be due on your purchase, even though you intend to live in the property you are buying.

[rajpal_bal]

What if i gift my beneficial ownership in my parents house 33%. I am on the title deeds jointly with parents

[bd6759]

You have already said that you have no beneficial interest in that house.

[rajpal_bal]

Sorry the first sentence deleted off.

What if i had beneficial interest in the property. Would this change if i only gifted my beneficial interest

[bd6759]

The law requires you to dispose of a major interest in a dwelling that was your main residence. How you dispose of it is up to you. Just make sure that you have evidence.

[SDLT Geek]

Evidence would also be required to show that a share was owned in the first place. In your case you do not have an undivided share in the property, you are just a trustee on the title.