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Where Taxpayers and Advisers Meet

second property SDLT - new PPR.

landlord1234
Posts: 64
Joined: Sat Nov 26, 2011 3:39 pm

second property SDLT - new PPR.

Postby landlord1234 » Tue Apr 09, 2019 4:22 pm

Hi,

Suppose someone owns only one property, purchased 5 years ago for £80,000 and now worth say £100,000 and it is their PPR.

They wish to buy a second property to be their PPR for £200,000 ,but they are struggling to sell the first property and are considering refinancing it as a BTL.

If they do so, Is the 3% SDLT premium due on £80,000, £100,000 or £200,000 ?

Thanks

SDLT Geek
Posts: 171
Joined: Sun Apr 30, 2017 5:45 pm

Re: second property SDLT - new PPR.

Postby SDLT Geek » Tue Apr 09, 2019 9:16 pm

The extra 3% SDLT would be due on the £200,000 purchase price of the new property.

Unless the £100,000 property is transferred to a limited company. Higher rates would then be due on the market value of that. Standard rates would then be due on the £200,000 purchase.


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