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Where Taxpayers and Advisers Meet

Second property sdlt

bjohnson69
Posts:11
Joined:Mon Oct 07, 2013 4:11 pm
Second property sdlt

Postby bjohnson69 » Sat Sep 19, 2020 12:12 pm

Hi - I can’t seem to find any examples in the guidance that cover the following scenario:

1 - sell main and only residence and move into rented property, say October 2021
2 - buy investment property - say January 2022
3 - buy new main residence and move in from rented property - say June 2022

Does the order of purchases mean that the Jan 22 purchase is taxed at standard rates and Jun 22 at second property rates?
Or is the rented property treated as a main residence so that the Jan 22 investment purchase is subject to 2nd property rates despite being the only owned property at that time?
Thanks for any pointers
Bill

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

Re: Second property sdlt

Postby SDLT Geek » Sat Sep 19, 2020 6:18 pm

Both purchases could escape the 3% surcharge. The first if it is the only property you own (or are treated as owning). The second because it is a replacement of your only or main residence.


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