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Where Taxpayers and Advisers Meet

Stamp duty

oldenss
Posts:10
Joined:Wed Aug 06, 2008 4:03 pm
Stamp duty

Postby oldenss » Sun Nov 01, 2020 5:01 pm

I have a question regarding stamp duty on my next purchase
1: I bought property A in 2007 and it was my only property which i lived in
2: I bought property B in 2009 and then rented out property A and lived in property B
3: I sold property B in 2020 and have temporally moved back to property A
4: I am now in the process of buying a new property C and will move into that after some refurbishment

I would like to know if I will have to pay the higher stamp duty rate on my new purchase of house C? I am aware that when property A is eventually sold I will have to pay capital gains tax on the proportion of the time it was rented out. These properties are in Wales

Thanks in advance

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

Re: Stamp duty

Postby SDLT Geek » Sun Nov 01, 2020 11:15 pm

As the property C you are buying is in Wales, it is Land Transaction Tax which is in point. The 3% extra LTT should not apply as within the 3 years before your purchase of property C you disposed of Property B which you had (again within 3 years of buying Property C) lived in as your only or main residence. It does not matter that after selling property B, you moved into property A which you already owned.

oldenss
Posts:10
Joined:Wed Aug 06, 2008 4:03 pm

Re: Stamp duty

Postby oldenss » Mon Nov 02, 2020 10:51 am

Thanks.....this is what I thought and it makes sense.....


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