When is the 'tax point' for stamp duty?

[KeyFutures]

I am in the process of buying both a buy to let and my main residence. I am currently in rented accommodation having sold my main residence in August last year.

The plan was to buy the buy-to-let first, which as I own no other property would not attract the higher rate of stamp duty, then to buy the main residence, which as it was replacing my previous main residence within three years of it's sale would not attract the higher rate of stamp duty.

However, the ideal property for my main residence came available at a knock down price so I have initiated the purchase of both properties.

My question is, at what point will HMRC recognise the purchase of a property? Is it when contracts have been exchanged, or is it upon completion?

I need to make sure that the buy-to-let reaches that point before the main residence.

Or have I misunderstood completely?

Thanks

[AGoodman]

These particular tests (second+ properties) are applied on the day of completion.

There are anti-avoidance provisions which can bring this forwards if the buyer takes possession or pays a substantial part of the purchase price before completion.

Look at Finance Act 2003 s.44 for the "effective date".

[jerome.lane]

The purchase date is usually taken to be on completion or when there is "substantial performance".

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm07700

Completing the buy to let purchase first ahead of the main residence should mean no additional rate of SDLT, based on the facts provided.

It is difficult to see HMRC applying the general anti avoidance provisions which apply to SDLT although stranger things have happened...

[KeyFutures]

Mr A Goodman and Jerome Lane, thanks for the replies, useful information.