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Where Taxpayers and Advisers Meet

Will I have to pay higher rates of SDLT on my first home purchase?

Blonde Lunatic
Posts:1
Joined:Mon Apr 12, 2021 8:27 pm
Will I have to pay higher rates of SDLT on my first home purchase?

Postby Blonde Lunatic » Mon Apr 12, 2021 8:33 pm

Hi guys,

Back 2019 I bought a buy-to-let with some family. I own 25% of the house. We paid £155,000. My share was worth £38,750 at the time.

I am now looking at buying a property for myself to live in as my own home.

Will I pay higher rates of SDLT?

Really grately for any answer anybody can provide,

Wishing you all the best,

Kindest regards,
Jack

AGoodman
Posts:1213
Joined:Fri May 16, 2014 3:47 pm

Re: Will I have to pay higher rates of SDLT on my first home purchase?

Postby AGoodman » Tue Apr 13, 2021 2:52 pm

You will have to pay higher rates unless your share of the investment property is worth less than £40,000 at the time you buy the new property (Finance Act 2003 Sch 4ZA para 3(4)(b)).

Given it's pretty close, you will want to be sure of your ground if you opt to say it's worth less.

(I'm assuming you won't be selling another home when buying the new one)


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