Stamp duty 3%

[devon]

When my widowed mother retired some years ago she came to live with me. She sold her primary home and purchased two “buy to let” flats; the rent from which augmented her modest retirement income.

Recently, as the result of a legacy she is now in a position to once more purchase her own primary home. She would like to purchase a retirement flat to take advantage of the communal activities and facilities they offer.

Notwithstanding the fact that she does not presently have a primary home, and the new purchase will be the purchase of a primary home, will her ownership of the two buy to let properties result in her having to pay the extra 3% stamp duty.

[maths]

No, the 3% charge should not apply.

[bd6759]

No, the 3% charge should not apply.

I think it will. She will own more than property and will not be replacing her main residence.

[maths]

will not be replacing her main residence.

Why do you say this?

[bd6759]

She sold her main residence many years ago and currently lives in her daughter's house.

[maths]

It doesn't matter how many years ago she sold her former residence. The 3 year requirement does not need to be met.

[bd6759]

Agreed. It's not 26 Nov 2018 yet. Sorry for doubting you.

[maths]

Absolutely no need to apologise.

The advantage of this forum, I find, is that if any of us express an opinion/view others will pick up any mistakes we make. I find it quite nerve racking responding then waiting to see what I've missed or simply got wrong.

Regards.

[devon]

I am very grateful for the generous time that the two expert contributors have devoted to my question and am reluctant to trouble them further.

Does the reference to “It’s not 26 November 2018 yet” mean that those who still own rented property, but sold their primary home several years ago, have the right to acquire a new primary home on condition that they do so prior to 26 November 2018?

That is to say; must my mother acquire a primary home prior to that date, or otherwise her ownership of two buy to let flats will result in the 3% surcharge?

[bd6759]

Yes.

There is a three year rule, but it does not apply until after 25 November 2018. (They chose that date because it is three years after the additional rate was first announced).