SDLT on main home with B2L also

[Tai3000]

Hi all,
I sold my previous main residence in Aug 2023 and moved into a property I own jointly, as tenants in common with my friend (50/50). I now want to buy out his 50%.

The new property has therefore been my main residence since Sept 2023 and will continue to be my main residence once I own 100%.

I also have a buy to let portfolio.

My solicitors have advised me will need to pay the extra 5% stamp (2nd home rate due to my B2L properties) but i believes this is not the case as I am swapping a main residence for a main residence within 3 year time period.

Any thought? Thanks

[bd6759]

Your solicitor is wrong.

The rules are set out at para 3, Sch4ZA, FA2003.

https://www.legislation.gov.uk/ukpga/2003/14/schedule/4ZA

Para 1A(6) lists the replacement of previous residence conditions.

You meet all the conditions. Although you have technically (or maybe only possibly) acquired a dwelling in the interim period, you have not acquired a major interest in that dwelling: see 1A(6)(d).

Condition D is explained here:

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09800

[Tai3000]

Thanks that’s very helpful…