Do we pay 3% extra stamp duty for primary home?

[Letsgoforit]

I was delighted to find this intelligent site. My answer is probably already on its pages. This briefly is our situation. My husband and I sold our home of 31 years in September 2008 and moved into our motorhome to travel the UK and further. Five years later, in 2013, we bought a property in Kent to move into. However this was not to be as my parents became ill and needed us nearby them so we rented this house out with view of moving into it . Now in 2017, the property in Kent is no longer suitable for us due to changes in our health. We therefore would consider buying second home while keeping tenants in first house to suppliment our pension. We are put off by the extra 3% in tax to pay and have some hope in thats as we are buying our primary home we could be exempt? If not we would have to sell the tenanted house or takeout equity release. We have no depends and are in late sixties. We would be very grateful for your help. Many many thanks!

[section 44]

We are put off by the extra 3% in tax to pay and have some hope in thats as we are buying our primary home we could be exempt?

It would be a second dwelling and therefore the extra 3% would apply

[Letsgoforit]

Many thanks for your reply. So it's sad but true!

[maths]

The 3% should not apply if it could safely be argued that the property purchase in 2013 was not intended to be the only or main residence.
The new purchase would then be a replacement only/main residence.

Prima facie, however, this does not appear to be the situation.

[Letsgoforit]

Hi Maths! Many thanks for your reply! We were in such a muddle then. We wanted to buy our home in North Norfolk after 5 years on the road but then my parents became ill and subsequently died. During this time we bought the house I mentioned- in Kent -as property prices were rising and we were not sure what the future held re everything really. We decided before exchange of contracts that we would have to rent it out as my father had died by then. Tenants moved in 3 weeks later. We will never live in it. But the rent would be useful if we can afford 2nd house. If we have to pay so much tax we may sell this house and put money's together. We have no mortgage and I know we are very lucky. Thank you again!

[bd6759]

The 3% should not apply if it could safely be argued that the property purchase in 2013 was not intended to be the only or main residence.
The new purchase would then be a replacement only/main residence.

Prima facie, however, this does not appear to be the situation.

Does a replacement not need to be within 3 years of the disposal of the previous residence?

[maths]

No.

See Sch 4ZA subsections (8) and (9) applicable to land transactions effective on or before 26 Nov 2018